Before you actually hook a fish, all fish will have the same name. They will all be named just "Fish". When you hook a fish, you will discover the true identity of it. If you have caught a real fish, the name of it will be revealed over the fishes head, including the weight of the fish as well (which will appear next to the name).
Some fish will turn into an Unknown. When this happens, you will usually reel in items. Some items can be really bad (such as a boot, or a log) but there are items that you can receive that are very useful (including armor and weapons and other fine treasures). There is also a very small possibility that you will lure in a monster that you will have to defeat (or run away from, if the case may be).
If you need more informations about fishing, take a look on this Fishing Guide.
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