It's time to brush up on your stock market terms and learn the words traders and investors are using to talk the talk. Learning this stock market terminology is going to be beneficial if you're studying the market and feeling confused about what people are saying. What the video below for an in depth lesson.
The market is confusing enough without understanding the stock market terminology and lingo that everyone is using. Below is a short list of the most common terms that you will hear as a trader.
Having a solid understanding of these terms will allow you to communicate in the chat rooms, understand the Bullish Bears lessons, and become an overall more efficient trader. We can't stress enough how very important it is to learn the basics of the stock market before trading!
PR – A press release issued by a company
Red-to-Green & Green-to-Red – When a stock goes from being up on the day to down on the day (or vice versa)
Resistance – A price level at which sellers repeatedly overpower buyers, making it difficult for the stock to increase in price.
Risk/Reward – How much money you plan to risk on a trade compared to how much you expect to gain
Scalp – Taking advantage of very small price changes
Short Selling – Selling shares of a stock that you do not own in hopes of buying the shares back at a lower price (the opposite of going long). Very popular when trading penny stocks.
Spread – The price difference between the bid and the ask
Support – A price level at which buyers repeatedly overwhelm sellers, making it difficult for the stock to drop lower in price.
Technical Analysis – Analyzing a stock’s historical price action (using charts and technical indicators) to predict future movement.
Trend – The general direction of a stock’s price movement. A stock can be in an uptrend or downtrend.
Volume – The amount of shares a stock trades for a given time period
Long – When a trader buys a position in a stock or option.
Short – When a trader sells (borrows from their broker to sell the position on the open market) a position in a stock or option.
We will continue to add to this list of stock market terms as time goes on. The world is always changing and we need to keep up to date! Remember, with learning the stock market, it takes time! You may feel overwhelmed on where to start. No problem! We all have felt that way and we wrote a page on getting started just for YOU right here.