Stock market keywords fly around the stock market community all the time; as a trader (newbie or seasoned) it makes sense to know them; if you want to partake in conversations and not come off completely out of touch. Find below stock market keywords I believe every trader should know. This is NOT an entire list but something to get you started.
An individual who looks at fundamentals and/or technical analysis of a company and makes recommendations to either buy, sell or hold securities.
Price you’re willing to sell your security.
An investor who feels a particular security will decline in value.
A prolonged period in which investment prices decline. Technically defined as a decline of more than 20% (from its highs) in the major indexes.
What you’re willing to pay for a security or an offer to purchase a specified security at a specified price.
When a security passes a previous point of resistance or resistance level.
An individual who works with securities and/or commodities.
An I.O.U from the issuer.
An investor who fells a particular security will increase in value.
A prolonged period in which investment prices rise.
Buy and Hold
An investment strategy in which a person buys a security and holds it over an extended period of time. Popularized by investors such as Warren Buffett and William Graham.
Technically defined as a decline of less than 20% over a short period of time.
When a short seller purchases shares on the open market; he has covered the shares he sold short (sold on the open market).
A trade that an individual open and closes on the same day.
A person who strictly daytrades.
Is defined as the amount of money you hold in your investing or trading account.
An analysis of a companies fundamental picture, such as future earnings potential, ROI, revenue, price-to-earnings (P/E) ratio, debt, dividends, etc.
Opening price of a stock is higher than the prior days high or low.
A market with an insufficient amount of volume or buyers to sell to.
IPO (Initial Public Offering)
An initial public offering of a stock, where the general public can purchase these shares for the first time.
A specified price (including shares) you’re willing to sell or buy a security at.
A market with a sufficient amount of volume.
A set time frame (typically 90 to 180 days) where majority share holders are restricted from selling their shares.
Is an action, which tells your broker to buy or sell a particular security at its current price (whatever that may be). Typically filled immediately.
Stock has appreciated too much, too fast and generally is considered set for a pull-back.
Stock has depreciated too much, too fast and generally is considered set for a bounce or rise in share price.
Getting In/out of trades for the sake of trading.
Current price (bid/offer) of a stock.
A price point that serves as a "wall". When reached; sellers step in and the stock typically declines.
A steadfast decline in share prices.
Selling a stock you do not own; in hopes of repurchasing it at a lower price point.
The difference between the Bid and Ask.
Partial ownership in a company.
A specified price you’re willing to sell your security at to limit losses.
A price point that serves as "support". When reached, buyers generally step-in and hold up the price of the stock.
Utilization of charts to determine where a stock price will be in the future.