Get to know your Philippines Stock Market Animals - Lazy Investing Way

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Sunday, June 19, 2016

Get to know your Philippines Stock Market Animals



Any discussion on stock markets involves talking about animals. But before we get into that and anticipate some complicated terminologies, let me give you a quick overview of the stock market. Basically, it's like a 'Mercado' where you buy different fruits, vegetables and other produce. Prices are driven by or subject to 'seasons' or supply and demand. If you are looking to buy oranges, its price fluctuates depending on time-of-day, season, 'haggling skills' and other market factors.

The stock market is similar, but instead of buying and selling goods/services, you are buying and selling publicly listed companies of different sizes from various industries!

The animal names are simply nicknames on certain situations and kinds of people engaged in the stock market:

Bear - Depicts an investor that is convinced that the market is headed for a fall. A bear market is when the economy is bad, recession is looming and stock prices are falling. (Some may see this as an opportunity since they see the situation as a bargain sale.)

Bull - depicts investors who are optimistic about future prospects of the stock market and believe an upward trending market. A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising.

Chickens - Individuals afraid of losing anything. Their fear overrides their need to make profits and get out of the markets entirely. Nothing ventured, nothing gained.

Dead Cat (Bounce) - A dead cat bounce is stock market slang for a temporary upswing in stock prices after a sharp fall. It is usually the result of speculators buying at the low prices and then quickly reselling.

Dog - Is a strategy of buying underperforming or the most beaten-down stock or a methodology focusing on dividend yielding stocks. [BoDogero]

Lame Duck - An investor who has no idea where one’s portfolio is going or is making more trades without profit. [Ipit Duck]

Ostrich - Just like the animal, investors stop looking at their portfolio and ignore any news about it during bad times and hope that their portfolio hasn’t been hit badly.

Pigs - Are high-risk investors (impatient, greedy, and emotional) looking for the one big score in a short period. They buy on hot tips, buying without doing due diligence.

Sheep - An investor who has no strategy or focus in mind. This type of person simply listens to others for stock advice.They are usually beginners but can sometimes turn into pigs and other animals as well.

Stag - It is when an individual or group buys into a company’s initial public offering (IPO) or issue of new shares with the intent of selling right away, hoping to take advantage of the rising stock price.

Wolves - You may have heard the term used in movies, this refers to individuals involved in unethical or criminal activities in the market (scams, market manipulation).

Lastly, let’s not forget the..Hyoomans - they can be heroic or villainous; shepherds to sheeps[thought leaders/financial planners] or roasters of pigs[Trolls/Hypers]; beware and be-aware!

Now that you have an introduction about the market, hopefully you can start navigating through it. But be careful, never invest in anything you do not understand. It’s a jungle out there!


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