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Trading Terminology Every Trader Ought To Be Familiar With
GPSM | Will Bell | February 19th, 2023
Trading words/ jargon and definitions are something that every online trader will need to be familiar with in order to make a living as a trader.
We'll start with the fundamentals, which should be known to most traders by this point, but if you're new we got you covered. After that, we'll get into some of the more sophisticated concepts that you might still be confused about. Learning them is important.
In the event that you have any questions after reading these definitions, please don't be afraid to contact us right away.
Recall that in order to trade successfully on a daily basis in your day-to-day profession as a trader, you must be familiar with these fundamental terminologies before entering the markets.
Terminology Used In The Trading Industry
Day trading: is defined as the simple act of purchasing shares of a stock with the goal of selling them on the same day that the stock was purchased.
Professional Day Trader: A professional day trader can be thought of as someone who day trades for a living informally, but from a regulatory standpoint, it refers to a trader who holds one of the following licenses: Series 6, 7, 63, 65, or 66. Market data is more expensive for traders who hold a valid license. In order to avoid this, when you open a trading account, you must state whether or not you are a professional (licensed) trader. If day traders are using their own money to trade, they are not obliged to obtain a license.
Day Trader Rules: The Pattern Day Trader (PDT) Rule stipulates that if a trader makes three or more day transactions in a five-day period, they are considered a day trader and are required to maintain a minimum account balance of $25,000 US dollars. In order to preserve that balance, many traders may trade through a Prop Firm (see below) or through Suretrader.
Unlike day trading, Swing Trading necessitates overnight hold times, which is in contrast to day trading. Swing traders will hold equities for at least one night, but they may hold them for multiple nights. These are investments that are only for a limited period of time.
Market Hours:9:30 a.m. to 4:00 p.m. (EST) Monday through Friday is the trading day for the stock market. There are some holidays when the market is closed or when it shuts at 1 o'clock in the afternoon. Pre-market and after-hours trading are both allowed, but liquidity is generally quite low because there aren't a lot of buyers or sellers who are willing to trade at those times.
Markets that are strong and moving upward are referred to as Bull or Bullish markets: In some cases, this can be used to refer to a specific position that a trader is taking. If they are bullish, they believe that the stock will rise in value.
Bear or Bearish: This term alludes to a market that is experiencing difficulties. This indicates that traders believe the price of stocks, or the price of a certain stock, will decline. If they are pessimistic, they may decide to liquidate their bullish positions and even go short on their investments.
When a firm does an Initial Public Offering (IPO), they sell a specified number of shares on the open market in order to raise money. This could be in the form of 10 million shares, for example. If those shares are valued at $10 per share, the IPO will generate $100 million in revenue. This money is re-invested back into the company in order to fuel future growth (building factories, strategic investments, etc).
FLOAT: The quantity of outstanding shares that are available for trading is referred to as the float. When the corporation went public for the first time, they issued shares. That amount is commonly referred to as the float, albeit there are three ways in which the number of shares might fluctuate. The Float is the same as the level of supply. It is the stocks with a limited supply and a high demand that move the most quickly upward or downward in price.
Share Buyback: A Share Buyback program is a program in which a corporation purchases back shares that were sold during the initial public offering (IPO). By doing so, they are lowering the number of shares accessible for trading, resulting in an increase in the value of all shares held by shareholders of the company. The float will be reduced as a result of share buybacks.
Offerings made after the Initial Public Offering (IPO) are referred to as "secondary offerings." Even if a corporation provides many secondary offerings, they are all referred to as secondary offerings (not third, fourth, etc). A secondary offering will allow the company to generate additional funds by selling additional shares. This has the effect of increasing the supply of shares on the market while simultaneously decreasing the value of those shares. This is generally not something that long-term investors are interested in seeing happen.
Stock Splits: A stock split has the potential to affect the price of a stock. Apple completed a 7-to-1 stock split. The $700 stock was multiplied by all of the shares x 7 to bring the stock price down to $100. This means that if you had 1000 shares for $700, you would now have 7000 shares at $100, and vice versa. This resulted in an increase in float. REVERSE stock splits will be implemented by some corporations. A 10:1 reverse stock split will take a stock that is currently priced at $1.00 and change it into a stock that is currently trading at $10.00. After the split, if you had 1000 shares at $1.00, you would only have 100 shares at $10 if you had previously held 1000 shares at $1.00.
Bulls vs. Bears Is A Trading "Talk" Used To Distinguish Between Bull Traders & Markets And Bears Traders.
Long-Side Trading: When traders are "long" a stock, they are purchasing additional shares of that stock. This indicates that they have taken a "long" position in the stock and anticipate that it will rise in value. These traders will make money if the stock goes up in value, and they will lose money if the stock goes down in value. They also have a "bullish" stance on the stock. An investor who wishes to exit a bullish or long side position may do so by "scaling out," or selling their shares in modest increments.
Scaling In or Scaling Out: A trader may "scale" in or out of a position in order to initiate or exit a position. Scaling in using this approach entails purchasing a partial position at $5.50 and adding (or scaling) with a second position at $6.00, as shown in the example. A cost average of $5.75 is achieved by the trader as a result of scaling in with equal sizes.
Cost Average: The cost average of the stock that you purchased is the average price of the stock that you purchased. In other words, if you buy the stock for $10.00, it increases to $11.00, and you double your position, you will have a cost average of $10.50 dollars on the stock.
When it comes to investing, dollar-cost averaging is a popular strategy, albeit it is not as popular among day traders as it is among investors. This implies that if you buy $1,000 worth of stock every month, even if you buy it at different prices throughout the year, you will have a dollar cost average that will help to balance out the big ups and big downs that may have occurred when you were taking positions.
Trading with averaging down or up: This is exactly the same technique as scaling, with the exception that averaging down is not something that many traders perform on a regular basis. Trading in this manner is not typically considered to be a wise strategy. Averaging down occurs when you buy a stock at ten dollars and it lowers to eight dollars. You then buy more shares and bring your average cost down to nine dollars. If you multiply the size by two or three times the number 8.00, you can reduce your cost average to as low as 8.50. Adding to an existing position that is already losing money comes with the risk of putting good money after bad, which some traders refer to as "throwing good money after bad."
Short-Side Trading: Traders who are "short" a stock do so by selling shares of the stock and resulting in a negative balance in their account. This means that they will have a net worth of -1000 shares. As soon as they sell the shares, they realize a profit on the transaction; nevertheless, they are required to buy the shares back. The shares have been borrowed from the broker in order to be sold in advance, with the purpose of repurchasing the shares in a short period of time after they have been sold.
Borrowing: In order to short stocks, you must borrow shares from your broker. If your broker does not have any shares available for you to borrow, you will be unable to short a stock. Initial public offerings (IPOs) are never shortable since brokers will not have shares available to borrow until after the offering.
Covering a short position: In order to terminate a short position, the trader must "cover" the position. This is the process of purchasing stocks to compensate for the shares they borrowed from their broker. It is possible for them to scale out of the short position in small increments, similar to a long-sided trader.
Days to Cover: Brokers will provide traders who borrow shares with a specific number of days to cover their positions. This could be for seven days, fourteen days, or more. If the trader has not closed out their position by the end of this period, the broker may close it manually and charge the trader a liquidation fee.
A short position against a stock is defined as the number of shares held by all traders across the world who are currently holding a short position against the stock at the time of the transaction. If a corporation has 10 million shares of outstanding stock (float), and 1 million of those shares are held in short position, the short interest rate is 10%. When equities have short interest of 30% or more, there is a possibility of short squeezes occurring.
Squeezed Short Positions: When a stock's price suddenly begins to rise, traders holding short positions begin buying in order to cover their positions, or traders' brokers cover their positions for them since they have reached the maximum loss on their account. This results in an excessive buy/sell imbalance, which can cause equities to move by 50-100 percent in a single trading day.
If a stock's value declines by 10% or more in one day, it is subject to a Short Sale Restriction (SSR). Once a stock has SSR, traders are prohibited from taking short positions unless the stock is moving in the opposite direction. Positions can only be placed on "upticks" in the stock market. To put it another way, while the stock market is rising. This means that traders selling short at the Ask Price will have to wait for a buyer to come along and purchase the shares they are attempting to sell short.
Account Types Are Defined In "Understanding Stock Market Talk."
In a cash account, the quantity of money in the account is equal to the amount of money that was deposited into the account. When you make a deal, you must wait T+3 (Transaction plus 3 days) for it to be completed. Transactions in stocks require three business days to settle. It's the same as waiting for a cheque to clear in the bank. While you are waiting, there is nothing you can do. Opt-in trades are T+1 transactions that settle in one day, allowing you to trade with cash the next day.
Margin Accounts: A margin account is one that is subject to the terms of a margin agreement. Margin accounts still take three days to settle, but instead of having you to wait three days before you may trade with the money, the broker credits your account with the money immediately after a trade is completed. It is because of this that day traders can execute 10 or more trades in a single morning. We have the ability to trade the same cash 1000 times every day if we so choose. All we need is a margin account to get started.
Accounts for Proprietary Trading Firms: Historically, proprietary trading firms were regulated trading firms. They will hire traders, require them to obtain trading licenses (Series 6, 7, 63, 65, 66, and so on), and allow them to trade with the money of the company they work for. These firms may ask traders to deposit as much as $10k of their own money, but once they have received their license, they can provide traders with leverage of up to 10x or more, depending on the firm. Some of the top traders may have tens of millions of dollars in cash on hand to trade with.
Accounts for Binary Options: Binary options are a type of bet in which you are betting against the price of a stock. These are extremely unregulated and illegal in many nations, including the United States. You place a wager on whether the stock will be above or below a given price by a specified time. Instead of trading, you are only placing wagers on the value of stocks, which is known as speculation.
Trading Accounts for Contracts for Difference: Trading accounts for Contracts for Difference are prohibited in the United States. These are provided by overseas brokers and are intended for non-residents of the United States. When you purchase a CFD, you are not purchasing shares of a company's stock. You are purchasing a contract to purchase a specified number of shares of a company's stock. You can then resell the contract if the value of the contract increases. Rather than purchasing actual shares, you can purchase contracts to purchase shares. The advantage is that you could theoretically purchase a contract to purchase 1 million shares, even if there were only 100 thousand shares available to purchase at that price at the time you made the purchase.
Retirement Accounts: Trading a 401k or an IRA account is a reasonably regular financial transaction. This is frequently the case for traders who have already collected a significant sum of wealth. The majority of companies will allow you to trade your retirement account, however, there are some restrictions.
1. There is no shorting.
2. There is no leverage.
3. Margin is only required for trades that will settle immediately, not for deals that will settle with borrowed money.
4. You will not be able to access the gains until you reach retirement age without incurring a penalty.
5. Growth is exempt from taxation, which is a significant advantage.
Margin is the amount of money that a trader receives when they open a broker account. In addition to allowing you to trade with borrowed funds, they also provide you with a line of credit to use for trading purposes. Brokers in the United States will always provide you with 4x leverage, which means that if you deposit $100,000, you will have $400,0000 in total buying power, with $300,000 of that being borrowed money from the brokerage firm. During the day, there are no expenses associated with trading on margin; however, holding on to margin overnight is subject to interest rate fees. This is referred to as the Margin Rate.
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The rate at which your cash deposit will be multiplied in order to provide you total purchasing power is known as the Leverage Rate. All US-based brokers offer four times leverage. Suretrader offers a 6x return on investment. Proprietary firms can have leverage of up to ten times or more. CFD accounts can provide leverage of up to 50x, which has the potential to greatly magnify losses. In most cases, overnight leverage is reduced to merely 2x the cash balance, as opposed to the standard 3x.
Purchasing Power: Your purchasing power is equal to the sum of your cash balance plus your margin. You have $400k in purchasing power in the event of 4x leverage and a cash balance of $100k dollars. If you accept a transaction for $250k, you will still have $150k in purchasing power left over.
Trading Margin Rate: The proportion of money a trader must pay his or her broker in exchange for borrowing money.
Margin Call: Traders who are issued a margin call are in debt to their broker at the time of the call. The broker will ask you to pay back the loan and may even force you to sell other assets in order to raise the necessary funds for repayment.
Fundamental and Technical Analysis Are Two Types of Trading Terminology.
Fundamental Analysis is the process by which a trader (or, more commonly, an investor) examines the fundamental parameters of a corporation. Among these are their annual and quarterly earnings per share, their book value (the total worth of the company's assets), the strength of their industry, and their potential for growth in the future. This is a complicated analysis that takes into consideration numerous elements. At the end of the day, a trader will have a long or a short bias on a certain stock.
Technical Analysis is distinct from fundamental analysis in that it does not consider the underlying parameters of a company, but instead focuses entirely on the price of a stock instead. It takes a sophisticated understanding of chart patterns and technical indicators to perform technical analysis. This is the form of trading that the majority of day traders will engage in.
Simple Line Charts: Line charts are the simplest sort of chart to understand. These charts do nothing more than plot a line. This can provide a decent grasp of price activity over lengthy periods of time, but it does not provide the required insight that traders demand during shorter periods of time, as shown below.
Bar Charts: Bar charts, like line charts, contain relatively little information that traders who are actively trading will require. For any given period, they display only the open price and the close price, and that's all there is to it. Assuming the chart is a daily chart, you will notice that each bar corresponds to a single 24-hour period.
Trading with Candlestick Charts: Candlestick charts are what the majority of active day traders will use to help them establish a foundation for entering a trade. Four pieces of information are contained within a candle stick. Prices at the start of the trading day and at the end of the trading day, as well as the high and low of the trading day It is possible for candlesticks to take on shapes that communicate market emotion when these four pieces of information are combined. In the case of a candle that started out at 10.00, reached a peak of 10.50, closed at 9.90, and reached a low of 9.90, the candle will appear very weak or bearish. The stock had a jump in value, but was unable to maintain those levels and was forced to sell off. It seems unlikely that a basic line chart or bar chart would have been able to express the same message to us.
Doji Candle Sticks: A doji candle stick is distinguished by the presence of a lengthy upper wick or lower wick. The wick represents the high or low point of the day. Dojis have smaller bodies than winning candles, which indicates that the open and close prices were relatively close to each other. This set of candles is regarded as a set of candles representing indecision.
Hammer Candle: A hammer candle is a candle that appears at the bottom of a long downtrend and has the appearance of a hammer. It has a long lower wick (similar to a doji), which serves as the handle of the candle. The hammer, which is a little body on the top, swings down from the top. This is referred to as a stock hammering out the base of the stock. This is due to the fact that the candle wick indicates that, despite the fact that the price sank, it surged back up swiftly!
Hammer Candle (Inverted): An upside-down hammer candle that occurs at the peak of a bullish trend is known as an inverted hammer. This candle, like the standard Hammer Formation, demonstrates that the stock was squeezed higher, but was unable to retain those high values and was forced to sell off. A turnaround of fortune may be on the horizon. Many other designs can be formed by placing multiple candle sticks close to each other, such as Flat Top Breakouts, Bull Flags, and Bear Flag patterns.
Chart Time Frames: Traders have the option of using a variety of chart time frames. When it comes to time frames, I personally prefer the 5min time frame, which I have discovered to be the most popular among day traders. I also use the 1 minute time frame for quick entries, and the daily time frame to gain a better understanding of a stock's overall history.
Stocks that open higher or lower than they closed the previous day are known as GAPS on the daily chart. This occurs when there is breaking news or some other type of catalyst that occurs overnight.
Price Action Technical Indicators: Technical indicators, also known as studies, assist us in interpreting the current price action. Because they trail somewhat behind the price action, Candle Stick Patterns will almost always be more beneficial than technical indicators in most situations.
Moving Averages are a technical indicator that indicates the average price of a stock over a period of time. They are used to calculate the price of a stock over a period of time. Simple moving averages and exponential moving averages are two types of moving averages. An Exponential Moving Average (EMA) is a price indicator that weights recent price action more heavily than older price action. As a result, the moving average will move faster in response to recent changes in price. On my charts, I make use of Exponential Moving Averages.
Relative Strength Index (RSI): The Relative Strength Index (RSI) is an oscillating indicator that fluctuates between zero and one hundred points. It is possible that a stock with an RSI of 0 has been oversold and is due for a rebound. In this case, the stock is severely overbought and may be due for a reversal in the near future. If this indication is used in conjunction with candlestick patterns, it can be a very useful tool.
MACD: The Moving Average Convergence Divergence (MACD) indicator is another oscillating indicator that may be used to determine the direction of the market. Distance between moving averages is measured using this method. Stocks move swiftly if the moving averages are moving apart; if the moving averages are moving close together, a stock has changed direction and is returning to balance. If they are close together, it indicates that the stock is not moving in any significant way.
A standard deviation is used to offset the moving averages in Bollinger Bands, which are used to trade stocks. As a result, the top and bottom bands will account for 95 percent of all price movement. Some traders seek for companies that are trading outside of their Bollinger Bands since this suggests that the market is experiencing an extreme condition (5 percent status). The premise here is that these equities are extremely overbought and are due for a reversal. When used in conjunction with the RSI and candlestick patterns, this can assist us in identifying promising stocks for reversal tactics.
In the stock market, the Average True Range is a trading term that is used to quantify the volatility of a stock or index, and it tells us what the average price range in which a stock normally trades.
When Bill Williams launched the Alligator Indicator in the 1990s, he was attempting to demonstrate that markets trend just a tiny fraction of the time, while maintaining in a sideways range for a large portion of that time period.
Terminology in the Trading Industry: Placing Orders
Bid Price: The Bid Price is the current price at which traders are bidding on a certain stock. Every stock has a bid attached to it. Assume that traders are bidding at a rate of 10.00. Traders can place a buy order at 10.00, but they will have to wait for a seller to come to their location and sell them shares. A seller who is sitting on the ask at 10.02 can also be approached for purchase as an alternative.
The Ask Price is the price at which traders are currently requesting to sell a stock at the time of the inquiry. Every stock has a bid and an ask price. Assume that traders are asking for $10.02. Traders can place a sell order at the current price of 10.02, but they will have to wait for a buyer to come and purchase their shares. Alternatively, they might simply sell to a buyer who is willing to pay the current bid of ten dollars.
Level 1: The current bid price compared to the current ask price is referred to as Level 1. In the preceding example, the sum of 10.00 and 10.02 is 10.00.
Spread: The spread is the difference between the bid and ask prices in a trading session. In the example above, we have a 2 cent spread between the two options.
Market Makers: Market Makers are the individuals who determine the spread. They are huge institutional banks that act as both purchasers and sellers of a stock in the same transaction. They will place a Bid, as well as a Post and Ask. They generate the spread and profit by selling shares in the interval between the spread and the profit. The greater the spreads, the greater the potential profit for market makers.
ECNs are an abbreviation for Electronic Communication Networks. If you conceive of the stock market as an island, there are a number of bridges that we can use to travel to the island from various points. These bridges are referred to as electronic communication networks (ECNs) or market makers, and they collect "tolls," or fees, for the use of their networks.
Market Makers provide a method that connects individual traders with the market. Direct routing occurs when traders choose to employ specific market makers or electronic communication networks (ECNs). The advantage is that it has the potential to speed up the order process. ARCA (short for archipelago) is a popular way for those who want to return to the concept of an island. NYSE, EDGX, JPCC, POST, and INET are some of the other common channels.
Smart Routing: Smart routing is available from the majority of brokers. Instead of asking you to guide the course of your order, they will choose the way that they believe is the best for your situation. If they have negotiated a discounted cost with a specific broker, they may choose to take that method as their preferred option. Before routing your order out to the "island," they may check to see if they have any shares available from traders within the company. This may or may not be in the best interests of the trader at all times. That is why I have decided to forego using smart routing and instead direct route my order placements.
Deep Dark Pools of Liquidity: Deep Dark Pools of Liquidity are similar to "ports on the island" that are holding shares, but no one has access to them. Occasionally, these shares are held by businesses or institutions, which then trade among themselves within the pool of shares. Because regular traders will not have access to the dark pool, if they want to acquire 10,000 shares, they will be unable to do so because the dark pool will not have 10,000 shares accessible. As a result, you will have to pay a greater cost. By utilizing Dark Pool Routing, you may now ping the dark pools in order to determine whether or not they have shares available.
Level 2: Day traders, in addition to understanding Level 1 and the bid/ask spread, must also be familiar with Level 2. Let's start with a discussion of the bidding process. If the bid is 10.00, there is a buyer waiting in the wings to purchase shares at that price. Is there a waiting list of other customers as well? Using Level 2 data, we can see purchasers at prices ranging from 9.99 to 9.98 and so on.
On the Level 2, we may see bids stacked tightly together, or we may see bids spaced apart, such as 9.95, 9.89, 9.74, and 9.64, for example. Full market depth on both the Bid and Ask sides indicates that level 2 has been reached completely. Although Level 2 is often displayed with bids on the left and asks on the right, some trading software displays it as a long line running from left to right, with the current price in the middle of the line. Level 2 displays not only the prices at which orders are listed, but it also displays the quantity of shares for each order as well as the market maker or ECN (electronic communications network) that is routing the transaction.
Time and Sales: Typically, a Time and Sales Window is located next to the Level 2 Window. The price, shares, route, and time of each transaction will be listed, as well as information about the transaction itself. This transaction will appear in red if it occurs at the bid price, green if it occurs at the ask price, and white if it occurs in the middle of the spread (in between the bid and ask prices). It's important to remember that the market is a closed system, meaning that every buyer has a seller, and every seller has another buyer. Transactions are classified as "sales" or "buys" based on whether or not the transaction is completed at the bid price or the ask price, respectively.
Volume: The number of shares traded is expressed as a percentage of the total number of shares traded. A stock with a daily trading volume of 1 million shares has a daily trading volume of 1 million shares. Some equities trade in the tens of millions of shares every day, while others trade in the hundreds of thousands of shares or fewer per day. When we look at the Time and Sales, we can see how much volume there is.
Day traders should be familiar with the concept of Relative Volume,
which is one of the most important indicators to understand. It demonstrates how much volume a stock has experienced in comparison to its average volume for the same period. It serves as an indicator for how much a stock is in play, and the more actively traded a stock is, the more likely it is to set up with follow through.
A thin market is defined as one in which there are few traders actively trading a given stock. Alternatively, it could indicate that there aren't many market makers actively "creating the market" for certain stocks by offering a reasonable bid/ask spread. Stocks that are thinly traded can have spreads of 20-30 cents, making it extremely difficult to trade them. These stocks frequently have a little amount of float (few shares available to trade). The price of these stocks might suddenly rise by 50-100 percent when there is a lot of demand for them. They are worth keeping an eye on for potential day trading opportunities.
A Thick Market: Markets and equities that are heavily traded will be suffocating with traders. Many of these stocks have extremely huge floats, are extremely well funded, and trade at a snail's pace. These characteristics make them excellent vehicles for long-term and low-risk investment. At the same time, they are unattractive to day traders because of their low liquidity. Even in times of great demand, things rarely move as swiftly as that.
Stocks can be suspended and paused from trading for a variety of reasons, including circuit breaker halts. Traders are unable to trade the stock in any way while the circuit breaker is in operation. Halts can last anything from 5 minutes to several hours or even days. There are various crucial elements to understand about Circuit Breaker Halts, which is why we have written extensively on the subject.
Market Orders: A market order instructs our broker to purchase your shares at the current market price at which they are available. If you place an order to purchase 1000 shares at 5.00, the broker will provide 1000 shares to you; however, because you have not specified the maximum price you are ready to pay, the broker may deliver shares at a higher price. If you inadvertently enter in 100000 shares, you may find yourself with a 5.50 or higher fill rate.
Slippage is defined as the difference between the price at which you expected to trade and the price at which the trade actually went through. This is due to the rapid movement of the markets, the volatility of stocks, and the spreads.
Limit Orders: A limit order is when you instruct your broker to purchase shares on your behalf and specify the maximum price you are willing to pay. A limit order for 1000 units at 5.05 will not fill at a price higher than that. That means that if the price changes suddenly, you may not receive 1000 shares.
Stop Orders: A Stop Order is an order that will be activated when the price of a stock surpasses a specific threshold. A stop order is a type of order that many traders employ to reduce risk. They placed a stop order at the price of their maximum loss. If the price rises beyond that threshold, the order is automatically processed. Stop orders can be sent as both market orders and limit orders, depending on the situation.
FOK Order: It's either fill or kill time. This means that either you will receive your full order or your order will not be fulfilled at all. This prevents partial orders from being placed, although I don't like to use it.
GTC Order: This is a valid order until it is revoked. This means that the order will remain on the broker's servers until it is cancelled by the trader.
Fill Price or Getting Filled: This is the price at which the trades are executed with your broker at the time of execution. This becomes your cost on a recurring basis. This occurs when you have a limit order that is excessively restrictive, and you only fill portion of your total order volume. This means that either the remaining order needs to be cancelled or you need to keep waiting to see whether the price drops enough to provide you the remainder of your fill.
The Verdict
Being familiar with stock market terminology will help you become a better trader. It takes time to understand the complexities of securities trading, but once you do, the stock market phrases listed above will become part of your everyday language.
I strongly advise you to quiz yourself on stock market terminology till you are completely comfortable with them all. Additionally, you can research other stock market words as they appear in your research to avoid being confused.
Consider signing up for my free trading webinar if you're interested in learning how to trade equities. It's a Bull Market, and I hope to work with you in the future.
