Literally have fish swimming around and you have to move the line around to get them. Bigger bait will attract more and if you throw the line in the water hard enough it'll scare the fish. Also, movement is meant to be little and etc.
And like Camel's, once you have your Fishing Skill at 200 (the rank achieved by getting 2x the regular amount of XP necessary for other skills), you get a bait that will self destruct upon detecting a large fish presence, like a fish pipebomb. It kills all the fish in a certain radius, which is large. If you're in a small enough lake it will make all of the fish float up dead to the water and even sometimes kill those around, so the line should be long and done from a distance. If you're in a large lake all the other fish will be scared away and scatter more over an extended time and also not fall for your trick for a certain amount of time...