HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

What trading animals do you find in the stock market?


We bet you watched Wolf of the Wall Street with Leonardo DiCaprio playing Jordan Belfort. Have you ever wondered why the main character was referred to as a wolf? That is not all. Take bulls and bears, for instance. Almost everybody has heard of bulls and bears when talking about trading in the financial markets. However, if you go deeper, you will see that the markets are inhabited by an entire animal kingdom that goes beyond just wolves, bulls, and bears.

Animals in the stock market are commonly used terminology to define characteristics of the type of the traders or investors or a market scenario.

Let’s meet the commonly used trading animals in the share market.

The Bull

Do you know the story behind the Charging Bull in the Financial District in NYC? Why did it have to be a bull? The answer is obvious. A bull represents an American dream story. You have things to fight for, and you do it, even when you live through hard times. Thus, bull traders speak for a positive market environment — prices tend to increase, therefore increasing traders’ investments and profits.

The Bear

The second-known animals in the stock market and the total opposite of bulls are bears. To understand bear traders, you can think of Leonard Hofstadter from The Big Bang Theory. The main character is pessimistic and lacks self-confidence. Talking to strangers or feeling shy and inconvenient, he is always with his head inclined. Though, when it comes to attacking, Leonard straights up and swipes down his prey.

This is a typical bear trader. Due to how bears attack, usually in a downward swiping motion, bear traders with a negative outlook on the market are called bears. They believe the price of trading instruments will drop and tend to sell, making the price even lower.

The Chicken

Another animal representing another type of traders’ behavior is the chicken. What pops up in your mind when you hear the word ‘chicken’? That is right; chickens are associated with the idiom ‘to chicken out,’ meaning to be scared of the situation.

Similarly, chicken traders behave in the stock markets — they panic and start selling impulsively when the market goes down. As a rule, they lose more than gain.

The Sheep

However, do not get too excited because movie and cartoon characters are not always accurate. A sheep trader is a great example of that. A sheep trader is not that timid scary sheep who turned out to be the main villain in Zootopia. With the sheep, everything is right the way it seems. Sheep traders are just like sheep animals — they follow the herd staying on the side of the majority and following a leader regardless of their qualification in the financial area.

Sheep traders have no specific trading strategy, they rely on tips and lifehacks made by others. Regardless of the changes that happen in the share market, they have only one trading style, which they have followed for years.

Check out Tips for Traders written by FBS financial analytics to understand trading strategies and apply them properly.

The Rabbit

Guess who an overactive trader is, whose goal is to make as many profits during the day as it is possible. They are rabbits, for sure. Rabbit traders buy securities for short periods and avoid no long-term risks. As soon as quick money is made, they sell their assets.

The Turtles

Unlike the overactive rabbits, turtle traders are slow and steady. They stick to long-term returns and usually win. To profit from short-term fluctuations is not about them. Every non-skilled trader can be trained and taught to be successful and profit from trading. Find out who came up first with this idea and how it was embodied in life in the Turtle trading system article.

The Whale

If you want to understand who a whale trader is, imagine Nick Fury from The Avengers. As the head of the S.H.I.E.L.D and the founder of the Avengers, whale traders are cool-headed and make carefully weighed decisions. You do not see him in the scenes much, but he is the one who makes tough calls, which affects the situation.

In the same way, whale traders can move the market with one trade. Market experts advise keeping an eye on whale traders trading – there is a chance to profit from watching the whales’ moves. However, it is difficult to do because they prefer to stay anonymous.

The Ostrich

If the whales are the ones who move the market, ostriches are the ones impacted by these moves. Why? It happens because they prefer to avoid negative news and hope for the better. Like an ostrich buries its head in the sand when it faces danger, an ostrich trader closes their eyes to all signals the financial markets send to them.

The Lame Duck

Here come more representatives of bird kind — lame ducks. There is an interesting story behind this term. Originally, this term came from London and its first stock exchange. It was used when an investor could not pay the money they owed and walked out of the exchange alley shuffling. Nowadays, this term is mainly used to indicate a margin call.

Funny fact: there is a three ducks trading strategy developed by professionals for trading with moving average. Even though the word ‘duck’ is in the name, it does not correlate with the lame duck traders. Read Three ducks’ trading strategy to understand the difference.

The Shark

Sharks are primarily brokers and funds interested only in making money. These brokers are as dangerous as sharks. Sharks usually work in a team and lure individuals into buying obscure stocks promising high gains. Then they push prices up by trading among themselves, dump the stocks, and vanish.

The Wolf

Finally, we came to the wolves. Wolves are the third most recognizable trading animal in the share market due to the movie Wolf of the Wall Street. If you watched the movie, you know that this animal, like sharks, indicates brokers, not traders. Knowing the main character and his way of managing the business, one can easily guess why he is called a wolf. This type of broker is powerful but unethical. They do not mind running scams and frauds to earn more.

Conclusion

As you can see, every animal represents a trader with a unique trading style. So, what type of trader are you? Find it out with FBS. Our financial analytical team does its best to make trading successful for every client regardless of their trading style. If you are a beginner, put your worries aside and learn to trade like a pro with Forex Guide Book and Forex Videos. Seasoned traders can boost their trading skills with Daily Market Analysis and Forex TV, great sources providing the markets overview, trade ideas, and in-depth analysis.

Whether you are a sheep or a bull, your trading will be successful with FBS.

FAQs

#source


RELATED

Basic Concepts Of The Stock Market And Their Applications

A stock market is a trading floor where stocks listed by companies are traded through direct exchanges between multiple parties (OTC). This kind of interaction...

MultiBank Group: Top Macroeconomic Indicators To Look For

Macroeconomic indicators are a key part of fundamental analysis. Their statistics provide insight into the state of a particular country’s economy. Macroeconomic indicators...

CFD trading: Pros vs Newbies

It seems like everyone is opening a trading account, installing mobile apps and desktop trading platforms, and adding online trading CFDs to their financial activities...

Stock Indices: What Are They And How To Trade Them

When describing the markets, we might hear of popular phrases like “the market has surged higher” or “stocks tumbled to new lows” when reading and listening to news reports...

How to Trade Oil CFDs: A Comprehensive Guide

The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains...

Bollinger Bands: Unveiling Volatility and Price Reversals

Bollinger Bands consist of three key components: a middle line, an upper band, and a lower band. The middle line is usually a Simple Moving Average (SMA) or Exponential Moving Average (EMA)

Demystifying the 60/40 Rule in Forex Trading: A Comprehensive Guide to Tax Implications

Forex trading, also known as foreign exchange trading, is a dynamic market where currencies are bought and sold globally. The primary aim of forex traders is to make profitable trades...

Financial Instruments Explained: Types And Asset Classes

Every beginning investor, having defined his investment objectives and risk profile, thinks about how to structure his portfolio so that it meets his needs...

Trader: Profession of the 21st Century

Trading is the process of buying and selling various financial instruments. Therefore, a trader is an individual seeking to profit directly from the trading process...

The future of cryptocurrencies

Examine the recent events in the cryptocurrency market and find out if cryptocurrencies are the unicorn of the 21-st century or the money of the future. When the world heard about...

Guide to Copy Trading: How to Replicate Trades

Copy trading presents the opportunity to mirror the trades executed by other experienced traders in real-time. The concept is to identify a trader with a proven track record...

How To Become A Successful Trader In 2023

In today's world, trading has become an attractive career choice for many individuals looking for financial independence and flexibility. However, becoming a successful trader requires more than just basic knowledge...

Navigating the Transition from a Full-Time Job to Forex Trading

Embarking on a journey from a traditional full-time job to the world of forex trading is a path increasingly chosen by many. This decision, while potentially lucrative...

Ultimate guide to trading Bitcoin for beginners

Bitcoin is the world’s first cryptocurrency that paved the way for the multi-trillion dollar crypto market we can trade and invest in today. Read on to learn everything you need...

A Beginner's Guide to Commission-Free CFDs Crypto Trading

If you've been toying with the idea of trading cryptocurrency, there might be one thing holding you back: the hefty fees and commissions that some trading platforms charge...

What You Need To Know Before Trading CFD

A Contract for difference offers investors and traders diverse opportunities to profit in the market from the price movement of assets without owning the asset...

How to start trading

Diving into any new industry, especially forex, requires planning. In this article, we’ll break down the process of how to start trading in 7 simple but critical steps...

How to Use ChatGPT in Trading?

ChatGPT is a versatile artificial intelligence that can be a useful tool for traders. There are no specific strategies for working with ChatGPT. What you do with it and how...

Is MetaTrader 4 good for beginners?

MetaTrader 4 (MT4) is one of the world’s most popular trading platforms, suitable for all types of traders, regardless of expertise. MT4 has become wildly popular for many reasons...

Top 5 Trading Books to Read in 2022

Just a guess: you’re new to trading and you think that trading is all about luck and intuition, right? Not really. In fact, being an efficient trader means more than just buying or selling assets

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.