Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
Subscribe
Money Investors
Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
  • Opinion

Why are animals in trading and why are they used?

  • December 15, 2021 12:57 PM
  • Augus Curtis
Trading Animals
Total
0
Shares
0
0
0

Those who are entering the world of trading have surely experienced a very particular case and it is about animals in trading. 

It is a metaphorical theme in the investment environment, where the personality of an animal can be coined to the different actors that are in this fascinating financial market. 

Thus, different terminologies associated with the animal world have emerged, such as  Bears, Bulls and Whales. 

In Money Investors we have decided to talk about this type of terminology, so that you understand why these animals are used in  trading  and what is their meaning.

Table of Contents

  • Why are animals used in trading? 
  • What do the animals in the Trading? 
    • Bears 
    • Bulls 
    • Whales  
  • Conclusion of animals in trading  

Why are animals used in trading? 

It is a more analogical subject where a comparison is made or the behavior of certain types of animals in the financial market is similar. 

Taking into account, that it manages to characterize the different animals with the ability to exchange or trade cryptocurrencies. 

This classification also depends on the different periods that are taken into account by  traders  at the time of trading, we will tell you what they are about: 

  1. Accumulation: It occurs when the price of an asset falls to a minimum point and there is a general sentiment, with a downward trend.
  1. Bullish Period: The value of the asset presents a correction and becomes stronger, achieving a bullish sentiment in the market.
  1. Distribution: Here in this period, the price of the asset presents its maximum point or resistance and has very little probability of presenting a further rise. 
  1. Bearish Period: It is at its highest point, experiences a correction and now begins a decline.  

What do the animals in the Trading? 

Each animal represents a particular personality in this complex but interesting world of  Trading . We are going to talk about the characteristics and association that Bears, Bulls and Whales have.  

Bears 

For this first case of the bear, it is associated with the term bearish,  since it is a noble and conservative animal during winter. Which usually represents the harshest climatic weather, a time where the cold is constant and food shortages are quite common. 

Despite the inclement weather and how harsh and temporary it may be, but ultimately impossible to avoid, the bear is very well adapted.

In the cryptocurrency environment, the winter season is classified as the time of low prices, where there is a weak market, which tries to stand out from those dangerous falls, which mean considerable losses. 

In the bear market, bears are associated with those sellers who bet on the bearish streak until their energy and persistence is exhausted. 

In this way, investors distrust or a general fear arises, caused by some external event such as regulations, hacks, sanctions, among others.

This is how you will normally find that the term of falling or falling prices of an asset in general is associated with the behavior and actions of bears on the market, which usually present actions induced by some external event.

Bulls 

Bears are exhausted and manage to overcome their greatest fears, now the market is struggling to reactivate itself and in that struggle another type of animal enters the scene, which are bulls.

The metaphor around the bull with the market bulls corresponds to its energetic character, which represents the power and confidence that this animal brings. 

Many experts compare the ergonomic figure of the bull to the bull market by the shape of its body, angled upward, with its head raised above the neck.

There is a constant struggle between bulls and bears to have control of the market and when they do, because they enter low prices, they maintain enough force to tangibly boost the prices of any asset.

Whales  

Another term that has been coined in the world of trading is the whale. Which refers to those movements of great importance that are carried out by purses in particular. 

Which may belong to an exchange, some personality or a particular institution that has the ability to move large sums of money in the cryptocurrency environment.

The metaphor around the term and the crypto space has been used from a simple but quite reasonable representation, which is the following: 

“We are all investors in an ecosystem that in turn acts like a great ocean, where there are fish (all users who have crypto) and whales (large investors), the latter are those who feed on the positions of those who are they consider weaker”.

The heaviest investors in the crypto environment are normally referred to under the term whales. 

Taking into account, that the so-called BTC whales are the ones who carry out the largest movements, such as hedge funds and investment funds in Bitcoin. 

In this trading environment there are a large number of prominent characters that are coined under this term, with different pseudonyms with which they operate, many try to maintain an unknown identity.

Whales often cause a CRUSHING impact. They are able to manipulate the market to obtain an increase in their profits in both directions, that is, both towards the fall or the rise of the price of a particular asset.

Conclusion of animals in trading  

The importance of these terms that associate different animals in trading goes beyond identifying their actions, it is necessary to understand and understand their key position in the market.

That is why many investors closely follow the actions of whales in the market in general, taking into account that with this type of monitoring they can come to understand the effects they can have on the market, with the position they have in the actuality. 

As you can see, it is very relevant to know what a particular bear market or bull market means. And how it could be beneficial or detrimental to an average investor.

Probably wanna read:

  • Is it interesting to invest in gold?
  • What to do to invest in the stock market and make a profit?
  • How to start investing in stocks if you have little or no experience?
Total
0
Shares
Share 0
Tweet 0
Pin it 0
Augus Curtis

I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make it and also to invest it. Here I share some ideas about business and money.

Related Topics
  • Investing
  • Investments
  • Markets
  • Money
  • Opinion
  • Trading
Editor
Augus Curtis
I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make…
Featured Posts
  • What is LVMH 1
    What is LVMH: Owner of luxury brands
    • January 15, 2023 6:20 AM
  • Google Business tools 2
    5 Google Apps for your online business
    • December 30, 2022 7:15 AM
  • Wordpress work 3
    10 Advantages of Using WordPress
    • December 30, 2022 6:43 AM
  • Servers hostings 4
    What Operating System to use in my VPS?
    • December 30, 2022 6:26 AM
  • Best Pets For Children 5
    What are the best pets for children?
    • December 26, 2022 7:41 AM
Recent Posts
  • Breeds Dogs
    How the different breeds of dogs arose
    • December 26, 2022 7:20 AM
  • nato-logo-1200x675
    These are the countries that are in NATO
    • December 17, 2022 7:11 AM
  • Biography of Giorgio Armani
    Biography of Giorgio Armani The Founder Of Armani
    • December 5, 2022 11:05 AM
Categories
  • Business (85)
  • Cryptocurrencies (32)
  • Lifestyle (42)
  • Money (99)
  • Opinion (74)
  • Travel (2)

ABOUT:

Money Investors is an economic and financial blog that wants to be a source of development of knowledge of the latest advances in studies related to the economy. Analyzing the various most relevant international opinion sources such as The Wall Street Journal, The Guardian, Market Watch, Market Times, BBC News, The New York Times and El País from Spain, we will provide diverse and eclectic approaches for understanding the economic panorama in depth, with a social and critical perspective of the various market players, as well as the institutions and structures that condition the behavior of these markets.

PRIVACY:

We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.

DISCLAIMER:

Money investors is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. Opinions expressed on this site are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. Money Investors exist to thought provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures.

Money Investors
  • About Us
  • Cookies Policy
  • Privacy Policy
  • DMCA
  • Term Of Use
  • RSS
  • Sitemap
  • Contact
© 2022 Money Investors LLC. A Curtis Times Company. All Rights Reserved.

Input your search keywords and press Enter.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT