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ANIMALS & BIRDS IN A MARKET

BULL: An investor who thinks the market, a specific security or an industry


will rise. Investors who takes a bull approach will purchase securities under the
assumption that they can be sold later at a higher price.

Bulls are optimistic investors who are presently predicting good things for the
market, and are attempting to profit from this upward movement.

For example, if an investor is bullish on the NSE 50, the investor will attempt
to profit from a rise in the index by "going long" on it.

Bullishness does not necessarily apply only to the stock market; an investor
could, for example, be bullish on just about anything, including real estate or
commodities like soya beans, crude oil or even peanuts.

BEAR: An investor who believes that a particular security or market is


headed downward. Bears attempt to profit from a decline in prices. Bears are
generally pessimistic about the state of a given market.

Bears, in comparison, are pessimistic and believe that a particular security,


commodity or entity will suffer a decline in price.

For example, if an investor were bearish on the NSE 50 they would attempt to
profit from a decline in the broad market index. Bearish sentiment can be
applied to all types of markets including commodity markets, stock markets and
the bond market.

Ostrich: A term that refers to the tendency of certain investors to ignore


bad news that can affect their investments. In the investment context,
"ostrich" is based on the popular misconception that when this large bird senses
danger and cannot run away, it buries its head in the sand. Similarly, investors
who exhibit ostrich-like behavior prefer to ignore negative news, which could
have a significant impact on their investment portfolios, in the hope that the
problem will simply go away. While this is an extremely passive approach to
investing, it should be noted that the ostrich effect is not exhibited only by
passive investors, but by active investors as well.

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Stag: A slang term for short-term speculator. A stag would be equivalent to a
day trader who attempts to profit off short-term market moves by quickly
moving in and out of positions. Day traders, or stags, typically require access to
a lot of liquid capital in order to fund their positions, since they may be
attempting to gain returns on very small price movements.

Stags will often use techniques associated with technical analysis as the basis
for their trading decisions, since long-term fundamental analysis typically will
not help when looking to make quick trading decisions over the course of hours
or minutes.

Lame Duck: A person who has defaulted on his or her debts or has gone
bankrupted due to the stock market. The phrase is said to have originated from
the London Stock Market during the 1700s and was used to describe individuals
who were ineffective traders.

A trader or investor who makes poor trades and ends up with heavy losses over
time would be considered a "lame duck."

Pigs:
Pigs are high-risk investors looking for the one big score in a short period of
time. Pigs buy on hot tips and invest in companies without doing their due
diligence. They get impatient, greedy, and emotional about their investments,
and they are drawn to high-risk securities without putting in the proper time or
money to learn about these investment vehicles. Professional traders love the
pigs, as it's often from their losses that the bulls and bears reap their profits.

Chickens:
Chickens are afraid to lose anything. Their fear overrides their need to make
profits and so they turn only to money-market securities or get out of the
markets entirely. While it's true that you should never invest in something over
which you lose sleep, you are also guaranteed never to see any return if you
avoid the market completely and never take any risk.

Wolves:
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The animal has been employed as an analogy to powerful individuals who could
employ criminal or unethical means to make money. Such rapacious or
ferocious individuals are behind scams that jolt the market when it comes to
light.
The most memorable example is Harshad Mehta, Ketan Parekh, Jordan Belfort,
convicted on charges of stock fraud in his penny stock operation and stock
market manipulation. His crimes and lifestyle are depicted in Martin Scorsese's
2013 film The Wolf of Wall Street.
A wolf market is sometimes used to describe the acts of various individuals
working together to manipulate the market. For instance, a group of
investors may employ "wolf hunting" tactics to drive a company's stock
into the ground by selling the stock short.

Hound Dogs:
This distinction is given to people who’s investment methodology revolves
around dividends. Dogs of Dow is one such investing methodology where
stocks are purchased based on their top 10 dividend paying companies. Dog is
also said to be stock which falls under dog quadrant of BCG matrix, but it also
get mixed with cats. May be NSE’s Dividend Opportunities Index tracker can
be given this distinction too as its list of top 50 dividend paying stocks.

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