Stocks - trading terminology for beginner investors |
- trading terminology for beginner investors
- Wall Street drops on ABC report on Russia probe
- Tell me about your LONG only stocks in your portfolio. Go!!!
- SQ - great buying opportunity, buy the dip!
- How much money did you start investing with?
- Has anyone ever used acorn?
- $MAT drop?
- What steps should I️ take to learn how to swing trade?
- SICK Google Finance RIP
- About to start trading!
- How to invest 70K
- Financials Exit
- Quick day gains on XNET
- Does anyone here have APAM?
- Is GE really going to hit 15 bucks?
- AMBA chip of the day
- Detailed stock simulation app?
- Found backdoor to old Google Finance!!
- CQH vs. CQP
- I keep feeling like I want to buy NOKIA stock
- Hold or dump MU
- (Question) Why invest in Megacorps?
- CELG
| trading terminology for beginner investors Posted: 30 Nov 2017 10:43 PM PST I found this and it has a wealth of terminology that helped clear things up for me when I was confused. Thought I would spread the love. 💘 https://foxytrades.com/trading-terminology/ Some people are having difficulties opening the link so I copied it into my original post. Basic Market Terminology: Stock A stock is a piece of ownership in a company. For instance, if you buy a stock in Walmart, you own a part of the retail store. Day traders buy company stocks with the aim of making profit at the end of the trading day. Stockbroker A stockbroker is a regulated professional who is responsible for buying and selling stocks, as well as other securities for stock traders through a stock exchange. They get a fee or commission for doing that. Essentially, a stockbroker links a stock trader to a stock market. Stock market It's a place where buyers and sellers come together at any given time to trade stocks. Online brokerages They are like stock brokers; only they are institutions that allow you to create an account with them in order to buy stocks easily. Basically, you transfer money from your bank account into these brokerage accounts to easily invest in stocks. Bull market A bull market situation is where stocks are going up or are projected to go up. That means the entire stock market is doing great. A bull market means there is great optimism, trader confidence and greater possibilities for higher ROI. Bear market Bear market is the exact opposite of bull market. In this market, stocks are on a downward spiral. Bear market is characterized by plummeting prices and typically shrouded in pessimism. This kind of market typically manifests during economic recessions and depressions. Smart day traders can benefit from both bull markets and bear markets by utilizing strategies and ideas that can bring in greater returns under different conditions. Short Selling, Put Option, and Short ETFs (short Exchange Traded Fund) are the main ways to profit from a bear market. Smart traders can also profit from a bull market through Long Positions, Call Option, and Exchange Traded Funds (ETFs). Buy It means buying stocks in a company. A day trader buys stocks in a company and sells them before the close of the day's trading. Sell This means selling of stocks that you've purchased. Traders can decide to sell their stocks because they've accomplished their objective or because they want to cut their losses. Liquidity Liquidity is the ability of your stock to be turned into cash quickly. For example, money in a bank is highly liquid, which means you can instantly get to it whenever you want some. A house, on the other hand, is not liquid because it might take you time to turn it into cash. Day traders, in particular, need to choose high liquid stocks as their aim is to buy and sell quickly (on the same day). Ask Ask represents the price that a stock seller is willing to accept from a stock buyer to get rid of their stock. Bid Bid is the highest amount of price a stock trader is ready to pay to buy shares of a given stock. Spread If you subtract the Ask price from the Bid price, you get the spread. Close Close represents the final stock price at the end of the day's trading. Short term trader A short-term trader seeks to hold out stocks for a few weeks or a few months before selling. Short term traders usually predict that a certain stock is going to rise in a few weeks or months and buy the stock. They later sell the stocks when the prices have actually gone up and make huge profits. Long-term investor Unlike a day trader, a long-term investor seeks to invest in a stock for the long-term (a minimum of one year). Normally, long-term investors think of 3, 5, to 10 years. Day trader Unlike a long-term trader, a day trader seeks to make profits by buying a stock or stocks each day and selling before the close of trading day. Short seller This is a stocker trader who predicts that a stock price or the whole market will go down and so they sell their stock at that moment. When the stock price actually goes down, they buy back their stock at a much lower price. Essentially, they are betting on the market going down to make profits on stock sales. Individual investor An individual investor is any regular person who goes out there to by a stock. Institutional investor As the name suggests, an institutional investor is an entity (investment bank, hedge fund, mutual fund) buying a stock. Large stock investor This is an individual who invests in large companies such as Microsoft, Apple, Coca-Cola and much more. We are talking about companies with a wealth portfolio of 50, 100 and 200 billion dollars. Mid-stock investor A mid-stock investor, on the other hand, is an individual who invests in companies with wealth portfolios of between 20 to 50 billion dollars. Small stock investors Small stock investors seek to invest in companies with wealth portfolios of half a billion dollars to five billion dollars. Micro-stock investor Micro-stock investors seek to invest in small companies that are still publicly traded. These kinds of investors target companies under $250 million market cap. IPO IPO stands for Initial Public Offering. It's sometimes known as stock market launch. IPO is a kind of offering where a company sells its shares to institutional investors. Institutional investors then list the shares for sale to the general public. Companies announce IPOs in order to raise capital for their expansion. Secondary offering A company can sell its stocks and realize later that they're doing well and decide to initiate another offering in order to sell more stocks to raise more money for expansion. This is called secondary offering. Market capitalization Market capitalization or market cap is basically the value of a company in the stock market. This value is arrived at by multiplying the number of shares of a company by the price of the stock. Market capitalization is not the real value of a company, as most people tend to think. The value of a company takes multiple factors into account, including assets, liabilities, and cash. Forex Simply means trading different currencies Authorized stock Authorized stock represents the amount of shares a company is legally allowed to issue. This amount can only be increased through a shareholder vote. Companies typically don't issue all of their authorized stocks. They reserve some for future needs. Issued stock Issued stock represents all authorized stocks that have already been issued to traders or investors. Although authorized stocks are not all issued, all issued stock is normally authorized. Some companies usually buy back the issued shares. Why? To utilize them to increase earnings-per-share, for future procurement purposes, and to have a huge stock reserve to sell later at a much higher price. Treasury stock Treasury stocks are stocks that have been repurchased by the issuing company. After the company buys back these stocks, they are at liberty to retain, cancel or reissue them. However, treasury stocks do not come with privileges such as voting rights or claim to dividend. Outstanding stock Outstanding stocks represent stocks that haven't been repurchased yet, which means they are still possessed by the investors. Trading volume Trading volume represents the number of shares being traded every day. Trading volume says a lot about a stock's liquidity. Margin Buying on margin is the act of borrowing money from a stockbroker to buy stocks. It's, essentially, a loan from a brokerage. Margin lets you buy more stock than you would be able to afford. To trade on margin, you must have a margin account. Margin account A margin account is a type of account offered by brokerages that enables traders to lend money to buy stocks. For example, a stock trader may only have 50% of the value of the stock. With a margin account, they will be able to borrow the remaining 50% to be able to buy the stock. Dividends If a company makes a good profit, it can decide to distribute a portion of it to its shareholders. These are called dividends. Note that not all companies give dividends to its shareholders. Yield Yield is the return on your investment. It's usually calculated as a percentage of your total investment. It is typically paid out as dividend. Hedge Hedging is the act of managing risk by offsetting the possibilities of loss coming from stock price fluctuations. In essence, it's the transfer of risk without buying insurance policies. Volatility Volatility is the frequency and gravity with which the prices of stocks fluctuate. If the stock price swings a lot, it means the market is more volatile. When the volatility of the market is low, stock prices remain stable. When there is a lot of volatility, there is too much fear, which triggers panic. That's when you see stocks being traded rapidly back and forth. Rally A rally is a period of rapid increases in stock prices. This kind of price movement may occur during a bull or bear market. And that's when you hear of terms like bear market rally or bull market rally. Moving average This is the average price-per-share of stock in a specific time period, usually 50 and 200 days. Exchange This is the platform or market where different stocks are traded. The most popular exchange in the world include New York Stock Exchange and London Stock Exchange ADRs ADRs stand for American Depository Receipts. It's a program that allows United States investors to buy foreign stocks while in the country. They can buy stocks in dollars and receive their dividends in dollars. ADRs allow American companies to increase their shareholder base, which in turn, increases their bottom-line. Blue chips stocks These are stocks from large-scale organizations that have established a reputation for high quality, and capability to operate profitably in both good and bad environments. Essentially, they are stocks of companies that have been in business for a very long time and are very stable. Going long Long-term investors typically buy low-priced stocks in anticipation that the price will increase someday so that they can sell for a bigger profit. Stock market Index Stock market index is simply the measurement of the value of a part of the stock market. It's usually calculated from the prices of given stocks. It's actually how the stock market traded. Were they up or down? So when someone says they want to buy an index fund, they mean a fraction of what the stock market is at that time. Portfolio Portfolio is the entire investment owned by a stock trader or an investor. An investor is allowed to possess as little as one stock or an unlimited amount of stock. Popped When we say a stocked popped, it means a stock went up substantially. Crashed When a stock crashed, it means the stock went down significantly. So you can only use crashed when the stock price went down substantially. Volume Volume is the amount of stock that traded the previous day. That means if you experienced a high volume day, including high volatility, then the volume was high. If you experienced a low volume day, and low volatility, it means a lot of stock was traded. Dog If a stock is labeled a dog, it means it's a bad stock. Most day traders keep off such stocks. This term was very popular in the 90s, but it's uncommon these days. Market sentiment Market sentiment is a term that describes how confident or how less confident a stock market is at a given time. If the market sentiment is high, traders feel very confident and optimistic. If the market sentiment is low, traders are not confident in the stock market, and there is a lot of pessimism. [link] [comments]  |
| Wall Street drops on ABC report on Russia probe Posted: 01 Dec 2017 08:39 AM PST If any of y'all noticed your stocks had a sharp decrease, it looks like this is why. https://finance.yahoo.com/news/deficit-doubts-tax-bill-cool-123646803.html [link] [comments]  |
| Tell me about your LONG only stocks in your portfolio. Go!!! Posted: 01 Dec 2017 10:00 AM PST |
| SQ - great buying opportunity, buy the dip! Posted: 01 Dec 2017 08:39 AM PST Basically free money. See you again next week with the exact same classic /r/stocks advice even lower. Third or forth time this week now? Never catch a falling knife, especially not when it comes to overhyped meme stocks like Square. XX% lower than yesterday and even XX% lower than the day BEFORE yesterday doesn't automatically mean cheap. [link] [comments]  |
| How much money did you start investing with? Posted: 01 Dec 2017 11:35 AM PST |
| Posted: 01 Dec 2017 08:13 AM PST I was looking at the app and it has the feature to round up every purchase on a card and invest that. I was curious if anyone has any experience with it or is it a no go? [link] [comments]  |
| Posted: 01 Dec 2017 12:55 PM PST Haven't heard any recent news of the upcoming merger with hasbro, any idea as to why Mattel is plummeting right now? [link] [comments]  |
| What steps should I️ take to learn how to swing trade? Posted: 01 Dec 2017 07:24 AM PST https://www.reddit.com/r/wallstreetbets/comments/5as0tz/today_im_going_to_teach_you_idiots_how_to_swing/?st=JAO25AWL&sh=899a214b Is this a useful source to follow in swing trading? Now I know not every single stock will follow this method but is i️t some sort of good information? I'm willing to learn and just need some assistance of where to look and how to learn it. Appreciate any help here thanks. [link] [comments]  |
| Posted: 30 Nov 2017 09:45 PM PST Help! Need a quick easy to use stock "tracker" use to be able to input all sorts of great data points. I apologize in advance but I really did like google and the simplicity and interactions made it a joy. I just want to build more portfolios! [link] [comments]  |
| Posted: 01 Dec 2017 01:43 PM PST My father is setting up an E-Trade account for me. I've been researching the stock market for the last few months, and I'm really excited. Thanks to this sub for teaching me a lot! [link] [comments]  |
| Posted: 30 Nov 2017 11:14 PM PST My wife and I are fairly young with good paying jobs. We have stayed out of the market over the last year or so thinking it was going to come down but it has not. Some advice please on what to buy in this crazy market? So far, I have been eyeing the following: DWDP, BAC, INTC, MSFT, FB, TXN, AMGN, BABA, IBM, AAPL, PYPL, UNH. As you can see, I am leaning what too heavily into tech even though they have moved the highest because I think they are the future. On the other hand, I want to diversify. My current stocks are: 3 Canadian banks (large positions), a Canadian utility and Visa. As I mentioned, we have fairly decent salaries and so we should always have more cash to deploy (fingers crossed). Thanks for all the help. [link] [comments]  |
| Posted: 01 Dec 2017 08:05 AM PST I've opened some long positions in VFH and December 29th calls in BAC and C over the last few months. I've started seeing healthy gains and wondering when to get it out. The Original play was for the incoming interest rate hikes, but it seems an exit after this tax hype could make more sense. Does it make sense to dump everything the day of or the following day after the news or hold deeper into December. Thanks in advance! [link] [comments]  |
| Posted: 01 Dec 2017 11:42 AM PST |
| Posted: 01 Dec 2017 10:52 AM PST The analysts on Fidelity can only say good things about APAM. Crazy dividend, on the rise as of late. I want to know the downside. [link] [comments]  |
| Is GE really going to hit 15 bucks? Posted: 01 Dec 2017 10:52 AM PST When you look at the technicals, doesn't GE pass at least the "floating above sea level" test? [link] [comments]  |
| Posted: 01 Dec 2017 06:39 AM PST Up big, does this suggest GPRO May have good things happening? [link] [comments]  |
| Detailed stock simulation app? Posted: 30 Nov 2017 10:30 PM PST Is there an app where I can trade paper money using a fake brokerage that offers more than just "buy/sell"? In the very least I'd like limit orders and stop losses, but I'd prefer some more functionality like trailing stop losses/bracket orders, and options trading would be awesome. Does such an app/game/whatever exist? [link] [comments]  |
| Found backdoor to old Google Finance!! Posted: 30 Nov 2017 03:56 PM PST Hope this works for you guys, but the link below brought me back to my old setup!! [finance.google.com/finance/portfolio](finance.google.com/finance/portfolio) [link] [comments]  |
| Posted: 30 Nov 2017 08:17 PM PST Probably a really dumb question, but Cheneire Energy Partners was down roughly 2% today while Cheneire Energy Holdings was up ~6% even though(from what I can tell) CQH's sole business is owning shares of CQP. There is probably a very simple answer, but if any of y'all could help me out it would be much appreciated [link] [comments]  |
| I keep feeling like I want to buy NOKIA stock Posted: 30 Nov 2017 05:54 PM PST The company values design which I always see as a positive longterm indicator. Their health side of the business is really interesting and I use some of their products. It seems like $5/ share is bargain and after their phone business was completely murdered there's no where to go but up... Here's some news that got me thinking: https://www.zacks.com/stock/news/283238/nokia-china-unicom-ink-deal-to-deploy-small-cells-in-china Also side note, whats up with that false alarm news that NOK was going to acquire JNPR but then denied. JNPR's stock jumped 30% after hours only to then fall back to normal at open. If I was a conspiracy theorist I'd say some PR people were testing public opinion.... [link] [comments]  |
| Posted: 01 Dec 2017 06:50 AM PST What are y'alls predictions regarding this company? I bought at the dip expecting it to level out but it's continuing its descent and I'm a bit worried. Thanks. [link] [comments]  |
| (Question) Why invest in Megacorps? Posted: 01 Dec 2017 02:31 AM PST Hello As a noobie, I'm wondering why people buy single-digit stocks of Megacorps (Amazon, Google, ect). Aside from it being a relatively safe investment, I don't underatand the appeal. Your return from dividends is low (Amazon-$1200 share price with $15 dividends- 0.0125% roi). In addition, your potential for growth is very low. Compare these with other companies such as Nvidia/Baba. (Nvidia-$200 share price with $4 dividends- 0.02% roi), with large room for growth. Investing the $1200 dollars with a small company seems to give a much greater, albeit it less safe, return. Can someone explain the allure of investing in Megacorps, if you're not investing large sums of capital? [link] [comments]  |
| Posted: 30 Nov 2017 06:47 PM PST Celgene is still relatively cheap from it's sell off in October and it is clearly undervalued from its ATH of $147. After this tax reform bill is passed, American pharmaceuticals should have an easier time with earnings as well. As a long term investment, do you guys thing Celgene is screaming buy or should I stay away. [link] [comments]  |
| You are subscribed to email updates from Stocks - Investing and trading for all. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment