Trader Talk

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The lowest price a seller is willing to accept for a stock. Often the price a trader looking to buy a stock  must pay if  wants order to fill immediately.

A market environment where prices are generally declining, hitting lower lows.  This is type of environment where more experienced traders are trying to profit via puts, short selling and/or buying inverse ETF's (Exchange Traded Funds). A Bear market is defined by a stock or market trading at least 20% below the recent highs.  

The bid price is the highest price a buyer is willing to pay for a stock. It's the price you will typically get filled at when you're selling a stock and want your order to be executed immediately. 

The difference between the bid‑ask is the spread, which reflects market liquidity and impacts trading costs.

When a stock moves above resistance level OR below support with strong momentum.

A market environment where prices are generally rising.  By definition, a market is in a "bull market" once it is trading at least 20% above the recent lows.

A system or setup providing a repeatable advantage or strategy that improves the probabilities of success in your trades over time.

ETF's stands for Exchange-Traded Fund, which is a basket of stocks that trades on an exchange like a single stock.

FOMO stands for Fear Of Missing Out.  Its an emotional reaction where traders feel got to immediately enter a trade because they fear missing a move, and making profits.

Short form for Fear, Uncertainty, and Doubt- negative sentiment or rumours that create panic or hesitation among traders.

An order to buy or sell a stock/ETF at a specific price (or better)

How easily a stock can be bought or sold without significantly affecting its price.  To determine the liquidity of a ticker, want to check average daily volume aka number of shares traded in a day.  Most traders look at three month, or six month average daily.

Buying a stock with the expectation that its price will rise.

An order to buy or sell immediately at the current market price.

The strength of a price move in a particular direction.

A technical indicator that smooths price data to identify trends.  Most commonly used Moving Averages are 20 Day (for short term direction/trend), and 100/200 Day Moving Average (examining the longer term trend)

Taking too many trades, often driven by emotion rather than strategy. 

A temporary decline in price within a larger upward trend. Typically caused by profit takers selling.

A price level where a stock historically struggles to rise above due to selling pressure.

The comparison between potential profit and loss on a trade, typically based off of closest support and resistance levels.

A group of companies that operate within the same industry (e.g Technology, Healthcare, Biotech)

Selling borrowed shares with the intention of buying them back at a later time at a lower price.

An order placed to automatically exit a trade at a particular price, when price  movement goes against you.

The overall direction of a stock or market over time.  Uptrend you are looking for higher highs and higher lows, where as in a downtrend you will find the stock hitting lower highs and lower lows.

The degree to which a stock's price moves up or down over time, or within a given day.   More advanced traders with an edge actually prefer high volatility to take advantage of short term swings to scalp quick  profits.