An investor who lacks a focused trading strategy and trades on emotion and the suggestions of others, including friends, family and financial gurus. This type of investor often makes rash investments without first determining whether these decisions are financially viable. The behavior of sheep contrasts with that of bulls and bears, who have focused views about the market.


Like a sheep, this type of investor is a follower, relying on a shepherd for guidance. These shepherds can come in the form of financial pundits or the latest trend or market story.

Sheep-like investors are often the last to get in on a major market move, such as the tech boom of the late '90s, because they base their investments on what is being talked about the most. Many experts believe that sheep-like investors are the most likely to sustain investment losses because they have no clear investment strategy.

  1. Ostrich

    A colloquial term that refers to the tendency of certain investors ...
  2. Bear

    An investor who believes that a particular security or market ...
  3. Lemming

    The act of an investor following the crowd into an investment, ...
  4. Herd Instinct

    A mentality characterized by a lack of individual decision-making ...
  5. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
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