trading

Stocks

are the capital raised by a business or corporation through the issue andsubscription of shares. Shares are pieces of the company. Buying shares makes youa share holder.

scalp trade

is a trading style that specializes in profiting off of small pricchanges and making a fast profit off reselling. These are essentially VERY fast DayTrades (as quick as 30 seconds to 5/10 mins in and out of the trade) . cons its very hard and volatile.

Calls

are when you bet for the stock to go up

Puts

are when you bet for the stock to go down

Intraday

Trading that happens within the same trading day—you open and close positions before market close. Its more predictable.

Liquidity

How easy it is to buy or sell without causing big price moves. Moreliquidity = tighter spreads, easier exits.

Volatility

How fast and how much a stock’s price moves. High volatility gives opportunity but also risk.

Bid

What buyers are willing to pay

Ask

what sellers want

Spread

difference(a cost in many trades)

Limit Order

Order to buy or sell at a specific price or better(not immediately at market). Helps control entry & exit price

Stop Order/ Stop loss

Set a price that triggers exiting a trade to limit losses. Key risk Control

Take Profit/Trim

Setting levels where you close part or all of a trade to lock in gains. Trimming means selling some but not all

Support/ Resistance

Price levels where the stock often stops falling(support) or rising(resistance). Useful for planning entries/exists.

Gap/ Gap fill

A gap happens when price opens much higher/lower than pervious close. Gap fill is when it moves back to fill that gap. Often watched for reversal or continuaition

Bull

uptrend buyers in control

Bear

downtrend sellers in control

FOMO

emotion that causes jumping into trades impulsively can lead to bad entries. Knowing when you’re feeling it helps avoid mistakes

Pattern Day trader rule

Regulation that applies in the U.S. if you do 4+ day trades in 5 business days in a margin account, you’re a “pattern day trader” and these are minimum account equity requirements

Extended-Hours

After hours trading outside of regular market hours. Lower liquid/risk outside regular hours

Broke

basically the middleman that connects buyers and sellers in a market so trades can happen.

Psyche

it is not fake money treat each dollar in the market as if it is a dollar in your hand

Numb

see so many numbers can make it seem as though it’s not actually money

Risk Management

you shouldn’t risk over 3% of your account per trade

Blowing your account

lossing all your money in your account

Awareness

if you are choosing to be unaware of something while trading don’t trade

Risk a day

don’t risk more than 10% and even that is beyond risky

Swing trader

trading where traders hold their trades for a long period of time. Weeks months and even years.

Leverage traders

are people who use other peoples money to trade. Highest risk.

Wave rider

is a trade who sees coins that are trending and try to hoop on the wave early enough to benefit themselves. Most unaware form of trading.