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A character does not have to be named, but they do have to be identified, otherwise the reader gets lost. If you don't identify them by name, then you should identify them by some defining characte...
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#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/24322 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/24322 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
A character does not have to be named, but they do have to be identified, otherwise the reader gets lost. If you don't identify them by name, then you should identify them by some defining characteristic that makes sense in the context of the story. This says something important about them in story terms. Generally, taking this approach is an expression of how other characters see that character. The defining characteristic by which you identify them should make sense as the characteristic that define them for the other characters, and it speak volumes about how the other characters see that character: are they in fear, awe, or contempt of that character? How they identify that character will define that relationship. Giving that character a name later also define a shift in mood or in point of view. Maybe one of the characters gets closer to the character. Now the sobriquet they use to use no longer fits and they need to use a real name. Maybe they are in different company where the sobriquet would be inappropriate or dangerous to use. Point is, all these choices are structural, not arbitrary. They say something important about the relationship between characters and you need to make sure that they say the right things about those relationships at the right time. Any techniques works when it supports the story; every technique fails when it does not support the story.