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Bull & Bear: Animals in the Financial Markets

Bull & Bear: Animals in the Financial Markets

Beginner
2023-01-10 | 5m

Have you seen the movie where Leonardo DiCaprio portrays the market endeavors of Jordan Belfort? Ever wondered why Jordan Belfort has been referred to as a “Wolf” of Wallstreet? In this article, you will learn why!

Traders and investors in the financial markets are often referred to using animal metaphors, with each animal representing a specific type of behavior or approach to the markets. Here are some of the most frequently used trading animals and what they represent:

Bulls

Bulls are traders who believe that the market will trend upwards and are optimistic about the future price of an asset. They are often associated with taking long positions and buying assets with the expectation that they will increase in value.

Bears

Bears are traders who believe that the market will trend downwards and are pessimistic about the future price of an asset. They are often associated with taking short positions and selling assets with the expectation that they will decrease in value.

Pigs

Pigs are traders who are greedy and make impulsive decisions based on their desire for quick profits. They are often overly confident and take on too much risk, leading to poor trading results.

Chickens

Chickens are traders who are fearful and indecisive, often missing out on good trading opportunities due to their lack of confidence. They may also close out their positions too early, resulting in missed profits.

Dogs

Dogs are traders who are slow to react to market changes and tend to hold on to their positions for too long, even when the market is trending against them. They may also be stubborn and resistant to change, causing them to miss out on opportunities to cut their losses.

Wolves

Wolves are traders who are aggressive and confident, often taking on high levels of risk in pursuit of large profits. They may use unethical practices, such as insider trading or market manipulation, to achieve their goals. They may also be skilled at manipulating other traders and taking advantage of market inefficiencies.

Whales

Whales are traders who have a significant amount of capital and can move the market with their trades. They often have a significant influence on the price of an asset and can create large price swings.

Turtles

Turtles are traders who are slow and steady, with a long-term approach to the markets. They are patient and disciplined, and tend to follow a set of rules or a trading system.

While each trader may exhibit traits of different animals at different times, it is important for all traders to strive for balance and avoid letting their emotions take control of their decisions. By staying calm and focused, traders can increase their chances of success in the markets.

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