Posted in Finance, Accounting and Economics Terms, Total Reads: 397
Sheep is the term coined for the investors who rather than trading on the basis of focused trading strategies, trade on emotions and suggestions of others. They usually rely on suggestions of financial gurus, friends and family. These sheep investors provide a contrast to bull or bear investors who trade on the basis of focused views about the market. Thus sheep investors do not test the financial viability of the option and hence are considered as rash investors.
The word sheep is derived from the characteristics of a sheep as a follower, following the instructions of the shepherd. Thus they are usually believed to bear a substantial amount of losses more frequently due to lack of clear investment strategy and market view.