Stocks

Stock Market

Stock markets are venues where buyers and sellers meet to exchange equity shares of public corporations

Stock

A share of ownership of a business

Forex

The term refers to the global trading of currencies similarly to how stocks are traded.

Stock Charts

The visual graph of the price of a stock over time helps them interpret what the stock price is doing and what’s likely to happen next.

Stock Exchange

an entity where stocks are bought and sold

what does IPO mean and what is it

stands for initial public offering. It’s when a company goes through the process of selling shares on the stock market for the first time

Stock Symbol / Ticker

A unique collection of letters and/or numbers that represent a stock. Amazon, for example, trades on the Nasdaq under the symbol AMZN.

Stock Portfolio

an investor’s collection of stocks.

Buy

To take a position by buying shares of a company.
As a trader, you generally buy shares when you think a stock’s price will rise.

Sell

To sell the shares you currently own.
Traders generally sell shares when they see an opportunity to take profits or they think a stocks rise is ending

Power Hour

Last hour in the open market

Market Order

Buying the stock at the available market price

The price the buyer is willing to buy at

Bid

Ask

The price the seller is willing to sell a stock at.

Buy

To take a position by buying shares of a company.

Bid-Ask Spread

The difference between the highest price at which someone is willing to buy shares and the lowest price someone is willing to sell shares

Limit order

An order with a specific price target that must be reached for the order to go through and execute

Execution

the act of fulfilling a stock trading order.

Scalping

When you enter a trade and sell within a few seconds to a few minutes after buying

Day Trade

Buying and selling a stock on the same day

Swing Trade

Buying and holding the same stock or option for 1 or more days to then sell it shortly after

Going Long

you’re purchasing shares of a stock, and you’re looking to profit if the stock price rises

When a trader looks to profit from a stocks price going down.
How do you go short

Going Short A trader goes short by borrowing shares from a broker, selling them, and hoping to buy them back at a then reduced price, to then return them to the broker on the agreed date.

Bull Market (or Bullish)

A market condition where stock prices are continually rising.

Bear Market (or Bearish)

It’s a market condition where prices are continually falling.

Trading Mentor

An experienced trader who can shorten your learning curve by teaching you how they trade and what they’ve found to work in the markets

Stockbroker

A person or company that acts as an agent, allowing traders and investors to buy and sell stocks

Sector

When related to the economy, a sector is an industry group in which the businesses offer the same goods or services.

Blue-Chip Stock

These are large, stable, well-known companies that are often profitable and pay consistent dividends.

Dividend

total value of all a company’s shares.

Market Capitalization

Interest Rate

The proportion of a loan that is charged as interest to the borrower typically expressed as an annual percentage of the loan.

Volume

measures the number of shares traded in a stock or contracts traded in futures or options. can indicate market strength, as rising markets on increasing volume

Trading Volume

The number of shares being traded at a point in time.
More means a stock is more active, and it’s easier to enter and exit positions.

Volatility

The fluctuation, up or down, in the price of a stock.

Hedge Funds

a type of investment fund that often uses non-standard investment and trading techniques. generally, try to be profitable regardless of whether the market is up or down, and they’re generally reserved for high net worth investors.

Mutual Funds

are pools of investor money put together to invest in stocks, bonds, and other financial assets.

ETFs

ETF is short for exchange-traded fund. ETFs are similar to mutual funds in that they’re pools of capital being used for investment purposes. But instead of wiring your money into the fund, you can simply purchase shares of the ETF on a stock exchange.

ADR

ADR is short for American Depositary Receipt. These are certificates that represent shares of overseas stocks.
ADRs allow you to buy and sell overseas stocks on U.S. stock exchanges in much the same way you can trade American stocks.

This is where an investor or trader buys more shares of a stock as the price drops, lowering the average price paid for the position.
can be an intelligent strategy for long-term investors, but we don’t recommend that active traders do it.

Averaging Down

Public Float

This is the term for a company’s freely traded shares. Many companies will have large chunks of shares that aren’t tradeable because they’re held by company management or key investors.
As active traders, we generally look for companies with a small public float, as their prices tend to be more volatile.

Outstanding Shares

This is the total number of a company’s shares. It includes both the public float and restricted shares held by management or key investors.

Secondary Offering

A company may raise money from investors by offering shares, even after the company’s shares are traded on a stock exchange. This is called a secondary offering.

Beta

The statistical measure of the way a stock performs compared with the broader market. Investors use beta as a way of understanding how much risk there is in holding a stock.

Margin

Margin refers to the use of borrowed money to trade shares. Some brokers allow margin trading, but we don’t recommend it, especially if you’re new to the markets.

Moving Average

A commonly used technical indicator found on stock charts. The moving average is an average of the stock price over a certain time period.
For example, the 20-day moving average is calculated by taking the price of the stock on each of the prior 20 days, then finding the average of those 20 prices.
It’s a quick and simple way for traders to see the trend direction of a stock.

Price Quote

A price quote is a stock’s price at a certain point in time. Traders will often want up-to-date price quotes to better analyze stocks and find decent trading set-ups.

Price Rally

A price rally is when a stock price rises at a noticeably quicker pace.

Option

(Also known as an equity option), gives an investor the right, but not the obligation, to buy or sell a stock before an agreed expiry date, where the realized proft/loss is the difference in price between the stock price at the time of purchase and the stock price at the time of selling, multiplied (also known as leveraged) by 100 (in most cases).

Call

The same as a long.
Calls are "in the money" when the market price is HIGHER than the strike price.
Calls are "at the money" when the market price is the SAME as the strike price.
Calls are "out of the money" when the market price is LOWER than the strike price.

The same as a short

Put

Strike

The price you'd pay or receive if you bought the option.

Time Decay

A measure of the rate of decline in the value of an options contract due to the passage of time. Time decay accelerates as an option's time to expiration draws closer since there's less time to realize a profit from the trade.

The Greeks

The Greeks are a set of calculations you can use to measure different factors that might affect the price of an options contract. With that information, you can make more informed decisions about which options to trade, and when to trade them.

Delta

Delta is the theoretical estimate of how much an option's value may change given a $1 move UP or DOWN in the underlying security. The Delta values range from -1 to +1, with 0 representing an option where the premium barely moves relative to price changes in the underlying stock. Delta is also used in non-options trading.

Vega

Vega measures the amount of increase or decrease in an option premium based on a 1% change in implied volatility.

Gamma

Gamma is the rate of change between an option's Delta and the underlying asset's price. Higher Gamma values indicate that the Delta could change dramatically with even very small price changes in the underlying stock or fund.

Theta

Theta is the rate of decline in the value of an option over time.

Roll

Rolling options is the practice of moving from one call or put on a certain stock to a different call or put on the same stock. It involves exiting the current position and immediately entering a similar position.

What does 0DTE mean

0 Days till Expiration

What does PNL mean

Profit and Loss

What does HOD mean

High of Day

What does LOD mean

Low of Day

What does BP mean

Buying power

What does BTO mean

Buy to open

What does STC mean

Sell to close

What does EOD mean

End of day

What does EOW mean

EOW= End of Week

What does TA mean

TA = Technical Analysis

What does DD mean

DD = Due Diligence (Doing your research)

What does S/R mean

S/R = Support & Resistance

What does BE mean

BE = Breakeven

What does TP mean

TP = Take Profits

What does SL mean

SL = Stop Loss

What does AH mean

AH = After Hours

What does PM mean

PM = Premarket

What does IV mean

IV = Implied Volatility

What does OTM mean

OTM = Out of the money

What does ITM mean

ITM = In the money

What does ATH mean

ATH = All time High

Example of a trade
c = call p = put

$SPY $410c @ $1.26

Ticker -?
Strike -?
Contract price -?

Example of a trade
c = call p = put

$SPY $410c @ $1.26

Ticker - $SPY
Strike - $410c
Contract price - @ $1.26