Stock market terminology

after market- trading that begins once the market closes, from 4pm eastern time to 8pm eastern time.

Bull- A bull is a stock market speculator who buys a holding in a stock in the expectation that in the very short-term it will rise in value whereupon they will sell the stock to make a quick profit on the transaction. more information here.

Bear- A bear is an investor who believes that a particular security or market is headed downward and attempts to profit from a decline in stock prices. Bears are typically pessimistic about the state of a given market. more information here.

day trade- simply a trade that is entered and exited within one trading day, this includes the pre-market and after market.

pre-market – trading that happens before the market opens, between the hours of 4am eastern time- 9:29am eastern time.

scalping- Scalping is the shortest time frame in trading and it exploits small changes in currency prices. these small gains can add up over time.

Scanner– Or stock screener is a tool that investors and traders can use to filter stocks based on userdefined metrics. They allow users to select trading instruments that fit a particular profile or set of criteria. more information here.

Sentiment- A term used to describe the social psychology behind a stock. the sentiment can be bearish or bullish. if you remember from above that means people are either betting the stock will go up (bullish) or betting it will go down (bearish).

Simple moving average or SMA- A term one will often see when traders are discussing their technical analysis of any given ticker, and it is a type of technical indicator. This will be discussed further in the basic technical analysis setup section.

momentum play– a term generally used to describe a day trade. traders enter with the expectation that the overall momentum of the stock will be strong, driving the price upwards quickly.

technical analysis– uses patterns in market data to identify trends and make predictions. very simply put, it is the study of human behavior in the stock market. this data can be interpreted using technical indicators to gain an overall feel for the trend of a stock.

technical indicators– tools used to identify patterns and trends by further evaluating a stock chart.

Ticker symbol- Ticker is the name a security trades under. for example Apple is APPL, Amazon AMZN ext. the $ tag has been made popular by stocktwits.com so you will often see things such as $AMZN or $APPL when reading about a certain stock on social media.

Click to rate this post!
[Total: 0 Average: 0]