Accumulation/Distribution ‐ Investors see if traders are accumulating (buying) or distributing (selling) a particular stock by comparing its closing price to its high and low prices—then multiplying that by its volume.
After‐Hours Trading ‐ Trading stocks after normal market hours through an electronic market, typically between 4:05 and 8:00 PM, is after‐hours trading. With the advent of the internet and apps, many banks and brokerages now offer after‐hours trading, and even pre‐market trading, before the markets open. Some brokerages even offer trading 24/7, though executing trades can be more difficult, due to low trading activity.
Analyst Ratings ‐ These ratings from stock brokers and ratings agencies urge traders to “buy,” “sell,” or “hold,” and are determined by the projected performance of a stock and its current level of risk. Analysts may suggest additional actions with ratings like “underperform” and “outperform” to give more nuance to their projections beyond “buy,” “sell,” and “hold.”
Arbitrage ‐ When a particular security or commodity trades on two different markets, investors can create a profit by leveraging the temporary price differences in each venue. This strategy has become a particularly popular method of making money with cryptocurrency, since the individual currencies may be traded on multiple markets, and its price may be different. Investors with an eye on the markets or serious foresight can buy low in one market then sell high in another.
Balance Sheet ‐ An accounting of a company’s assets, liabilities (debt), and the capital it receives from shareholders.
Bear Market ‐ When prices in the market have declined by 20% or more during the last two months or beyond, this is called a Bear Market. It’s common for pessimism, fear, and other negative sentiments from investors to accompany a bear market, and even fuel its downward spiral. Cyclical bear markets can last from a few weeks to a few years, while secular bear markets can last 1‐2 decades
Beige Book ‐ Published 8 times annually, this index is a prominent indicator of the US Economy.
Beta ‐ This measurement tracks the relative volatility of a given security in comparison to a particular standard.
Bid‐Ask Spread – A bid‐ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid‐ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. An individual looking to sell will receive the bid price while one looking to buy will pay the ask price. Market makers facilitate orderly trading with this tool, which helps them buy and sell securities.
Black Swan ‐ Black swan is used to describe an extremely rare and unpredictable event that triggers a perfect storm of catastrophic consequences that negatively impact the stock market.
Blockchain ‐This decentralized, digital ledger provides a secure record of digital currency transactions. Though blockchain began as a way to keep a record of digital currency, the premise of decentralized record‐keeping carries huge implications for how information is stored. Companies in all types of industries from health to supply chain are exploring the possibilities offered by a secure, decentralized accounting system.
Blue‐Chip Stocks ‐ Known for the stability of the stock and the lasting quality of the company, blue‐chip stocks tend to have market capitalizations of over $5 billion. These companies tend to be household brand names that have imprinted their name on the American conscious, such as Coca‐Cola, Disney, and IBM. Many of these companies are also attractive to investors because they issue dividends.
Bond ‐ An organization such as a government or company can issue loans, represented by fixed‐income bonds that offer the investor a relatively more stable return. After a certain period of time, established at the outset of the bond, it can be redeemed for a particular price. Government bonds are regarded as one of the most secure investment vehicles, since it is extremely unlikely that the U.S. government will default on its obligation to repay the loan.
Bull Market ‐ Investors get buyers fever and continue to drive up prices, whenever a particular market or asset class rises in value; this is called a bull market. Though the term commonly relates to the stock market, it can also be applied to other asset classes such as bonds, currencies, commodities, and even real estate. Though stock prices always rise and fall, the upward trend indicated by the term “bull market” can last for months or years.
Call Option ‐ Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.
Candlestick ‐ This technical indicator shows investors the opening and closing prices of a particular security during a certain amount of time.
Capital Gains ‐ The positive difference in value between an asset’s selling price and what the investor first paid for that asset is its capital gain.
Cash Flow ‐ The amount of cash and/or equivalents a company brings in, obtained by calculating its income and subtracting its expenses. Cash flow also applies to individual investors as well, if they have income‐generating assets such as stocks that pay dividends, rental properties, or ownership in a business. Investors often regard cash flow as the wellspring and fuel of their financial success and growth. Channel Trading ‐ This trading strategy relies on technical analysis on price movement patterns that create and inform defined trading channels.
Circuit Breakers ‐ A circuit breaker is a kind of regulatory measure that is used to temporarily halt all trading on an exchange. Circuit breakers are in place to curb panic‐selling. They are used both in broad market indexes, such as the S&P 500, as well as for individual securities. They exist in the United States, as well as in other countries around the world.
Commodities ‐ Raw materials used every day by millions or billions of consumers, the prices of which are based on supply and demand.
Compound Interest ‐ Interest accrued on both the principal and the interest from the previous period is called compound interest.
Consumer Price Index (CPI) ‐ This index examines the average cost of particular services and consumer goods ranging from food to tech to health.
Correction ‐A statistical even where security or assets prices decline at least 10% from a recent peak.
Cryptocurrencies ‐ A digital currency formed from a series of coded transactions, the record of which is kept on a digital ledger called blockchain. The first digital currency was Bitcoin, which has since skyrocketed in price even as others such as Ethereum have come on the scene. Though cryptocurrency seems strange to most consumers, it’s becoming increasingly accepted as payment, even among online retailers.
Dark Pool ‐ Dark pools are private exchanges for trading securities that are not accessible by the investing public. Dark pools were created in order to facilitate block trading by institutional investors who did not wish to impact the markets with their large orders and obtain adverse prices for their trades. As of February 2020, there were more than 50 dark pools registered with the Securities and Exchange Commission (SEC).
Day Trading ‐ Buying and selling securities within a single day, even within several hours or minutes. Investors with either a serious understanding of the market or a high‐risk tolerance track the market all day, buying low and selling high. Some investors use these profits as their primary source of income, though many amateurs who have not put in the requisite research have failed.
Days to cover ‐ Days to cover, also called short ratio, measures the expected number of days to close out a company's issued shares that have been shorted. It measures a company's issued shares that are currently shorted and divides that by the average daily trading volume to give an approximation of the time required, expressed in days, to close out those short positions. Days to Cover = Current Short Interest ÷ Average Daily Share Volume Dead Cat Bounce ‐ This type of event occurs as part of a long‐lasting downtrend in price. When the price falls significantly from a previous high, it may appear to bounce back or suggest a reversal of the downtrend.
Death Cross ‐ The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross appears on a chart when a stock’s short‐term moving average crosses below its long‐ term moving average. Typically, the most common moving averages used in this pattern are the 50‐day and 200‐day moving averages.
Derivative ‐ A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. Discount Rate ‐ The interest rate the Federal Reserve Banks charge to financial institutions borrowing money from their short‐term (usually overnight) discount window. This is the most common definition.
Dividend ‐ A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividend‐paying companies are typically eligible as long as they own the stock before the ex‐dividend date.1 Dividends may be paid out as cash or in the form of additional stock.
Dow Jones Industrial Average (DJIA) ‐ One of the most‐watched indices worldwide, these 30 blue chip stocks are tracked as an indicator of the market’s overall health.
Earnings Per Share ‐ EPS is a metric that divides company profit by the number of outstanding common shares to show how much earning power each individual share carries.
Earnings Reports ‐ These reports are part and parcel of the legal obligation that publicly held companies have to reveal an accurate picture of their financial performance.
Economic Reports ‐ These reports offer a variety of data about different sectors of the economy, both domestic and global; they are published regularly by several departments in the Federal Government.
Elliott Wave Theory ‐ This theory, developed by Ralph Nelson Elliott in the 1930s, proposes that crowd psychology shifts between optimism and pessimism, in turn affecting market prices in a natural pattern.
Exchange‐Traded Funds (ETFs) ‐ These pooled investment products are comprised of securities in a specific type of index or industry. In this way, an ETF is like a cross between owning individual stocks and participating in a mutual fund.
Ex‐Dividend ‐ Ex‐dividend describes a stock that is trading without the value of the next dividend payment. The ex‐dividend date or "ex‐date" is the day the stock starts trading without the value of its next dividend payment. Typically, the ex‐dividend date for a stock is one business day before the record date, meaning that an investor who buys the stock on its ex‐dividend date or later will not be eligible to receive the declared dividend. Rather, the dividend payment is made to whoever owned the stock the day before the ex‐dividend date.
Federal Reserve ‐ The Fed plays a crucial role in guiding domestic monetary policy; it is the central bank of the United States. The centralized control of the monetary system was implemented in 1913 in order to alleviate and mitigate potential financial crises—further crises such as the Great Depression have led to an increase in its responsibilities and roles.
Fibonacci Numbers ‐ Fibonacci numbers are used to create technical indicators using a mathematical sequence developed by the Italian mathematician, commonly referred to as "Fibonacci," in the 13th century. The sequence of numbers, starting with zero and one, is created by adding the previous two numbers. For example, the early part of the sequence is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, and so on.
FinTech ‐ FinTech is a culturally shortened derivation of the words Financial Technology. It refers to the use of technology that is used to automate and provide innovation to, financial services.
Float ‐ The number of shares issued by a company, which are traded without restriction on a secondary market.
Fundamental Analysis ‐ Fundamental analysis is a method of measuring a security's intrinsic value by examining related economic and financial factors. Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management.
Gap Up/Gap ‐ Gapping is when a stock, or another trading instrument, opens above or below the previous day’s close with no trading activity in between. Partial gapping occurs when the opening price is higher or lower than the previous day’s close but within the previous day’s price range. Full gapping occurs when the open is outside of the previous day’s range. Gapping, especially a full gap, shows a strong shift in sentiment occurred overnight.
Golden Cross ‐ A Golden Cross is a chart pattern in which a relatively short-term moving average crosses above a long-term moving average. It is a bullish breakout pattern that forms when a security's short-term moving average (such as the 50-day moving average) crosses above its long-term moving average (such as the 200-day moving average) or resistance level.
Gross Domestic Product (GDP) ‐ This measurement indicates the monetary value of all final services and goods produced by a specific country within a specific time frame.
Growth Stocks ‐ These are stocks issued by companies that increase in value, rather than producing higher dividends. Their rising prices optimally outperform the general trend of the greater market.
Hedge Funds ‐ This alternative to traditional investing uses a pool of funds from contributing investors who meet particular criteria. A hedge fund has a goal to create an absolute guaranteed return for its investors. This is done through a complex and diverse market strategy. Hedge funds generally avoid regulation because they are not publicly accessible; only select and invited investors can participate.
High‐Yield Dividend Stocks ‐ Stocks that pay out generous dividends are regarded as a proven way for investors to increase their assets. They are a solid choice for investors of all types, and not just those who are averse to risk.
Inflation ‐ The general decline in a currency’s purchasing power, which is often accompanied by a price increase of goods and services.
Implied Volatility ‐ Implied volatility is a metric that captures the market's view of the likelihood of changes in a given security's price. Investors can use it to project future moves and supply and demand, and often employ it to price options contracts. Implied volatility is not the same as historical volatility, also known as realized volatility or statistical volatility. The historical volatility figure will measure past market changes and their actual results.
Initial Coin Offering (ICO) ‐ Also called a token offering, this crowdfunding tool allows an investor to provide a cryptocurrency startup with existing traditional currency or cryptocurrency in return for tokens of the new cryptocurrency.
Initial Public Offering (IPO) ‐ This formal process involves a private company raising capital through the sale of stock to institutional investors on a major stock exchange, for the first time. On rare occasions, individual investors can purchase stock in the IPO.
Insider Trading ‐ Buying or selling a security based on information that is not available to the public. Participants in insider trading are often leveraging information that should be or will soon be public. As a result, insider trading is regarded as an illegal activity.
Institutional Investors ‐ These large companies or firms buy and sell securities along the lines of their investment strategy, along with facilitating trades for members and shareholders.
Intrinsic Value ‐ Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset. In financial analysis this term is used in conjunction with the work of identifying, as nearly as possible, the underlying value of a company and its cash flow. In options pricing it refers to the difference between the strike price of the option and the current price of the underlying asset.
Inverted Yield Curve ‐ This curve indicates market conditions in which short‐term debt instruments (like 2‐year bonds) have a higher yield than long‐term debt instruments (like a 10‐year bond). Both the short‐ term and long‐term instruments of debt must be of the same quality, for example, U.S. Treasury Bonds.
Leveraged Buyout (LBO) ‐ This financial transaction involves acquiring a company through borrowed money. The buying party does not have to put their own capital at risk, and instead has leveraged capital from other sources.
LIBOR ‐ The standard rate international banks would most likely charge one another for inter‐bank lending is referred to as The London Interbank Offered Rate. This rate estimation is formulated by leading London Banks submitting their estimate of what other banks would charge them. The LIBOR is a benchmark for short‐term interest rates around the world, but it will be discontinued in 2021.
Liquidity ‐ A measurement of how easily an asset such as stocks, cash, real estate, or valuables could be bought or sold without affecting the standard price.
Lock‐Up Period Expiration ‐ Also known as a lock‐up agreement, investors are restricted from buying or redeeming shares for a period of time usually numbering 90‐180 days.
Margin Call ‐ A margin call occurs when the value of an investor's margin account falls below the broker's required amount. An investor's margin account contains securities bought with borrowed money (typically a combination of the investor's own money and money borrowed from the investor's broker). A margin call refers specifically to a broker's demand that an investor deposit additional money or securities into the account so that it is brought up to the minimum value, known as the maintenance margin.
Market Capitalization ‐ The value of outstanding shares from an issuing company, used by investors to rank company sizes, in distinction to sales or total assets.
Market Indexes ‐ A theoretical portfolio of investments that represents a specific market segment.
Market‐on‐Close (MOC) ‐ A market‐on‐close (MOC) order is a non‐limit market order, which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. The purpose of a MOC order is to get the last available price of that trading day. The MOC imbalance is the difference between the Buy MOC orders and the Sell MOC orders. The imbalance can be used as a short term sentiment indicator.
Momentum Indicators ‐ These technical indicators help traders confirm the veracity of a buy or sell rating.
Moving Average (MA) ‐ In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. In finance, a moving average (MA) is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data by creating a constantly updated average price.
Moving Average Convergence Divergence (MACD) ‐ Moving Average Convergence Divergence (MACD) is a trend‐following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26‐period Exponential Moving Average (EMA) from the 12‐period EMA.
Mutual Funds ‐ A mutual fund is a company that pools money from multiple investors and uses a proprietary investing strategy to place that capital into select securities. Many mutual funds are comprised of stocks in a particular index or industry, while others offer more diversification. Mutual funds are a safer way for the average retail investor to place money in stocks while mitigating risk.
NASDAQ ‐ This American Stock exchange is the second‐largest marketplace in the world in terms of market cap.
Net Income ‐ A company’s earnings after expenses, this stat indicates whether or not a company is making money and retaining profit.
Net Margin ‐ Also known as profit margin, this is the amount of remaining revenue after a specific period of time.
Open Interest ‐ Open interest is the number of active contracts. It's one of the data fields on most option quote displays, along with bid price, ask price, volume, and implied volatility. Yet, many options traders ignore active contracts, which can lead to unforeseen consequences. Open interest indicates the total number of option contracts that are currently out there. These are contracts that have been traded but not yet liquidated by an offsetting trade or an exercise or assignment. Unlike options trading volume, open interest is not updated during the trading day.
Operating Income ‐ The income of a business after deducting its operational expenses. Options Trading ‐ This sale of buyer‐seller contract allows the purchaser to have the right without obligation to buy or sell a certain security at a certain price and on or before a certain date. Option Volume ‐ The daily volume of a specific option contract is simply a measure of the number of times that contract was traded on a particular day, including opening trades, closing trades, and written (sold) premium. The higher this daily volume, the more liquid this option contract becomes as compared to options with a lower daily volume.
Outstanding Shares ‐ All the shares of a corporation that have been authorized, issued, purchased, and held by investors. These investors have ownership in the corporation and have shareholder rights. Overbought ‐ A security with this rating is trading above its true value.
Oversold ‐ A security with this rating is trading below its true value.
P/E Growth (PEG) ‐ Price‐to‐earnings growth is a refined variation of the P/E ratio that also assesses a company’s potential for growth.
Pattern Day Trader ‐ A pattern day trader (PDT) is a regulatory designation for those traders or investors that execute four or more day trades over the span of five business days using a margin account. If this occurs, the trader's account will be flagged as a PDT by their broker. A pattern day trader must hold at least $25,000 in their account. That amount can be a combination of cash and eligible securities. If the equity in the account drops below $25,000, at this point they will be prohibited from making any further day trades until the balance is brought back up to $25,000.
Penny Stocks ‐ Small public companies can issue stocks with prices under $5, which are called Penny Stocks. Though the SEC has set the definitive upper limit at $5, some penny stocks trade for fractions of a penny. Oftentimes penny stocks are issued by younger companies with a less established history. These companies are trying to raise capital. If the investment works out and the stock takes off, investors stand to make huge gains, since the entry‐level cost to the investment was so low.
Pivot Points ‐ A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.
Preferred Stock ‐ These stocks grant the shareholders a stronger claim of ownership and company earnings than common stock.
Price Target ‐ This estimate of the future price level of a stock, futures contract, ETF, or commodity, is made by investment analysts and financial advisors.
Price to Earnings Ratio (PE) ‐ This stat compares the current price of each share to its earnings and is frequently used in determining the value of a stock and its issuing company. Some investors feel strongly about the PE ratio’s ability to accurately reflect the true value of a stock and advise investors against purchasing shares of stock with high PE ratios. Though the price of those stocks may point to good health, the PE ratio indicates they are actually overvalued.
Price‐Sales Ratio ‐ This valuation allows investors to see to what degree a stock is accurately priced, by comparing stock prices to company revenue.
Producer Price Index (PPI) ‐ This weighted index of prices reflects the views of producers and wholesalers of that item. It is released monthly by the BLS (Bureau of Labor Statistics).
Profit Margin ‐ A commonly used stat, profit margin helps investors see the profitability of their trading activity.
Put Option ‐ A put option is a contract giving the owner the right, but not the obligation, to sell–or sell short–a specified amount of an underlying security at a pre‐determined price within a specified time frame. This pre‐determined price that buyer of the put option can sell at is called the strike price.
Quantitative Easing ‐ A program in which the central bank of a given nations leverages a supply of newly minted currency to purchase assets like government bonds from banks, pension funds, and insurance companies.
Quiet Period ‐ The waiting period that begins once the company and underwriters agree to proceed with an initial public offering (IPO).
Quiet Period Expirations ‐The date on which the SEC (Securities & Exchange Commission) approves a company’s registration for an IPO and the end of the quiet period or waiting period.
Real Estate Investment Trust (REIT) ETF ‐ A company that owns income‐producing real estate and sells shares of ownership to investors, similar to a stock. REITs create an opportunity for retail investors to get involved in real estate when the costs of doing so on their own might be prohibitive.
Recession ‐ A downturn in economic activity through multiple consecutive quarters of increasing decline. Recessions are also often associated with a drop in spending, spurring economic reforms to stimulate the economy. However, some investors view low stock prices during a recession as a prime motivator for maximizing the value of their dollar and purchasing more shares.
Relative Strength Index ‐ The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his 1978 book, "New Concepts in Technical Trading Systems."
Resistance Level ‐ Resistance, or a resistance level, is the price at which the the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. Resistance levels can be short‐lived if new information comes to light that changes the overall market’s attitude toward the asset, or they can be long‐lasting. In terms of technical analysis, the simple resistance level can be charted by drawing a line along the highest highs for the time period being considered. Resistance can be contrasted with support.
Retained Earnings ‐ A company's profit after paying out dividends to shareholders. This is to the company what disposable income is to a private individual.
Return On Assets ‐ This particular profitability measure helps investors gauge their return on investment as it relates to their assets.
Return on Equity (ROE) ‐ How efficiently a company leverages its assets provided by shareholders (e.g. stock sales) to create more income.
Return on Investment (ROI) ‐ ROI indicates profit on a particular investment as a percentage of earnings in comparison to the cost of investing in that particular security or asset.
Reverse Stock Split ‐ Also called a stock merge, this deliberate corporate action is made by a company that wants to reduce the number of outstanding shares while increasing the price per share proportionally.
Risk Tolerance ‐ How willing an investor is to take on volatility and variability in their investment returns.
SEC Filing ‐ This series of documents filed by a publicly traded company allows them to be listed and traded in public markets.
Short Selling ‐ A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when she believes that the price of that security is likely to decrease in the near future. A covered short is when a trader borrows the shares from a stock loan department; in return, the trader pays a borrow‐ rate during the time the short position is in place.
Short Squeeze ‐ A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who were short the stock to cover their short positions it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.
Special Dividends ‐ Cash payments made to shareholders that are separate from regularly paid dividends.
Stock Split ‐ This corporate action increases the number of outstanding shares by dividing each share.
Stop Loss Order ‐ A stop‐loss order—also known as a stop order—is a type of computer‐activated, advanced trade tool that most brokers allow. The order specifies that an investor wants to execute a trade for a given stock, but only if a specified price level is reached during trading.
Straddles ‐ A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.
Strangles ‐ A strangle is an options strategy where the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset. A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset does swing sharply in price. A strangle is similar to a straddle, but uses options at different strike prices, while a straddle uses a call and put at the same strike price.
Strike Price ‐ A strike price is the set price at which a derivative contract can be bought or sold when it is exercised. For call options, the strike price is where the security can be bought by the option holder; for put options, the strike price is the price at which the security can be sold.
Support Level ‐ Support, or a support level, refers to the price level that an asset does not fall below for period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. In technical analysis, the simple support level can be charted by drawing a line along the lowest lows for the time period being considered. The support line can be flat or slanted up or down with the overall price trend. Other technical indicators and charting techniques can be used to identify more advanced versions of support.
Swap ‐ A derivative instrument where two parties contractually agree to exchange a sequence of ash flows, taking place on a certain date or at targeted intervals, as stipulated in their contract.
Technical Analysis ‐ The interpretation of price action achieved through various charts and statistics to determine trends, range, resistance, and support of a particular security.
Trade Deficit ‐ A condition in which one country imports more goods and services than it exports. Trading Strategy ‐ This trading strategy is a plan to make a profit with the stock market by selling short and/or buying long. There are many different types of trading strategies.
Treasury Bonds ‐ This government‐issued bond is provided by the U.S. Treasury Department. These treasury bonds are securities that grow at a fixed rate, which the U.S. government sells in order to raise funds and clear up its national debt.
VIX ‐ Created by the Chicago Board Options Exchange (CBOE), the Volatility Index, or VIX, is a real‐ time market index that represents the market's expectation of 30‐day forward‐looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors' sentiments. It is also known by other names like "Fear Gauge" or "Fear Index." Investors, research analysts and portfolio managers look to VIX values as a way to measure market risk, fear and stress before they take investment decisions.
Yield Curve ‐ A visual representation of the relationship between maturity length and bond yield.
Juice – the increase in implied volatility (and option premium) that occurs prior to an earnings release or other binary event.
Live Nation – repeat of old or previously reported news.
Lotto – very risky trades that are like lottery tickets, they work very well or end up a complete loss. Also known as YOLOs (You Only Live Once).
Reverse decay ‐ an increase in volatility that increases the value of an option even when the stock price is moving slowly.
Scalping - quick intraday trades, often lasting no more than a couple of minutes. Scalp trades are not posted in text but are often called out on voice.
Slapping Cobras ‐ trading weekly expiration options in the last hour of the market on Friday (same day expiration). Visual representation ‐ https://youtu.be/Hf‐znKiVwyk.
Turtle – when a ticker is starting to break through prior support or resistance (e.g., like a newly hatched turtle making a run for the beach).
YOLO – very risky trades that are like lottery tickets, they work very well or end up a complete loss. Also known as a Lotto.
AH ‐ After Hours
ATH ‐ All Time High
ATL ‐ All Time Low
ATM ‐ At The Money
BK ‐ Bankruptcy
BB ‐ Bolinger Bands
BO ‐ Break Out
BTFD ‐ Buy the F'ing Dip
C&H ‐ Cup & Handle
DP ‐ Dark Pool
DCB ‐ Dead Cat Bounce
DB ‐ Double Bottom
DT ‐ Double Top
DD ‐ Due Diligence
ER ‐ Earnings Report
EOD ‐ End of Day
EMA ‐ Exponential Moving Average
FOMO ‐ Fear of Missing Out
FOMC ‐ Federal Open Market Committee
H&S ‐ Head & Shoulders
HOD ‐ High of Day
HH ‐ Higher High
HL ‐ Higher Low
HODL ‐ Hold On for Dear Life
ITM ‐ In The Money
IB ‐ Interactive Brokers
IR ‐ Investor Relations
LOD ‐ Low of Day
LH ‐ Lower High
LL ‐ Lower Low
MM ‐ Market Maker
MOC ‐ Market On Close
MOMO ‐ Momentum
MA ‐ Moving Average
OI ‐ Open Interest
OTM ‐ Out of The Money
PPT Plunge Protection Team
PM ‐ Pre‐Market
PT ‐ Price Target
R/S ‐ Reverse Split
RR ‐ Risk/Reward
RAF ‐ Risky As F*%k
RH ‐ RobinHood
SS ‐ Share Structure
SPAC ‐ Special Purpose Acquisition Company
S/R ‐ Support / Resistance
TD ‐ TD Ameritrade
TA ‐ Technical Analysis
TS ‐ TradeStation
UOA - Unusual Options Activity
VWAP ‐ Volume Weighted Average Price
WL ‐ Watch List
WB ‐ WeBull
WW ‐ Worth Watching
YOLO ‐ You Only Live Once