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Investing Chapter 1
Question | Answer |
---|---|
YouTube Channel | TradeLikeGates |
What is paper trading? | A stock market simulator where you can use fake money |
Thinkorswimlink | TDAmeritade paper trading platform |
AH | After hours -after market closes |
Bag holding | Holding shares of decreasing value in the hopes they will rebound |
Beat | Stock beat earnings expectations |
Bearish | Stock in a downtrend |
Bullish | Stock in an uptrend |
Blown up | Account value reduced to zero due to poor trading and money management |
Catalyst | Event that causes price to move significantly like press release, earnings announcement, analyst review/report |
Channeling | Stock is fluctuating in a reasonably predictable pattern through a set price range. Great for day traders |
Dead cat bounce | Temp recovery in price after a significant fall usually after an earnings report |
DD | Due diligence |
EMA | Exponential Moving Average |
EOD | End of day |
Float | Number of shares actually available to public |
HOD | High of day |
Hedged | To limit by conditions or exceptions |
IPO | Initial public offering-first time a private company goes public |
Liquidity | The degree to which an asset can be bought or sold quickly. Indicated by a high volume of activity in the market |
LOD | Low of day |
Loading the boat | Buying more shares of a stock you already own |
Low Float | Relatively small number of shares available. Means they are volatile |
Market cap | Total value of all shares of a company. Ex 20 million shares at $40 is $1 b market cap |
NHOD | New high of day |
PDT | Pattern day trader RULE: 3 DAY trades per 5 days unless you have $25k in your account |
PM | Premarket |
PT | Price Target |
Pump/pumper/pump and dump | Artificially inflating stock price with misleading positive statements |
RH | Robin Hood trading app |
R/R | Risk to reward ratio |
Run | Stock that drastically increases in price |
Scale/scale out | Sell a portion but not all of you shares of a stock |
SMA | Simple moving average |
Spread | Difference between the bid and the ask price |
Squeeze | When short sellers are forced to buy back their shares due to increased buying pressure |
Sympathy | When a stock gains value due to another stock that is associated with it also gaining value. Sympathy can be from being in similar sectors, having very similar equity curves, being based out of the same country, similar legal effects of new laws etc |
Technical Analysis | A trading discipline. Uses price trends and charts to evaluate stocks |
Ticker | Stock symbol. Ex apple is AAPL |
VWAP | Volume weighted average price |
WL | Watch list |
WW | Worth watching |
Day trade | Buy and sell in the same day |
Dividend Payout | A company’s payout to those who own their shares |
Large Cap stock | Companies with market cap of $10b. Have high liquidity and so trade easily. |
Support | A price where a stock typically bounces back up. Must have two points to validate the price. Round numbers are often supports |
Resistance | A price where a stock typically bounces down from. Must have two points to validate the price. Round numbers are often resistance. |
Round Numbers | 50, 100, 150, 200 |