Terminology Flashcards

Question

Long Selling

Answer 1

This is where you buy an asset in the idea that it will trend upwards and can sell at a higher price

Answer 2

An example of short covering Let's say that you have a feeling that Company X's stock is about to drop, so you short-sell 100 shares at a price of $50, for total proceeds of $5,000. In two weeks, Company X is trading for $40 per share, so you buy 100 shares for $4,000 in order to cover the short position. In this case, the overall result of the trade would be a $1,000 profit.

Answer 3

What Is a Position? A position is the amount of a security, commodity or currency which is owned by an individual, dealer, institution, or other fiscal entity. They come in two types: short positions, which are borrowed and then sold, and long positions,

Answer 4

Volume weighted average price

Answer 5

Exchange Traded Funds

Answer 6

A stock with fresh news A stock that is up or down more than 2% before the market Open A stock that has unusual pre-market trading activity A stock that develops important intraday levels which we can trade off from

Answer 7

Index funds such as the Dow Jones Industrial Average (DJIA) or the S&P 500 (SPY) are usually good indicators of what the overall market is doing. If the Dow Jones or the SPY are red, it means that the overall market is weak. If the Dow Jones or the SPY are strong, then the overall market will be going higher. Aziz, Andrew. How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology (p. 59). AMS Publishing Group. Kindle Edition.

Answer 8

Usually it is the release of fundamental news about the stock either the day before or during the same trading day.

Answer 9

Float means the number of shares available for trading.

Answer 10

stocks in the range of $10-$100. These stocks have medium floats of around 10 million to 500 million shares.

Answer 11

Stocks that in the pre-market gapped up or down at least 2% Stocks that have traded at least 50,000 shares in the pre-market Stocks that have an average daily volume of over 500,000 shares Stocks that have Average True Range of at least 50 cents (how large of a range a stock has on average every day) There is a fundamental catalyst for the stock As a rule, I do not trade stocks with an enormous short interest higher than 30% (the short interest is the quantity of stock shares that investors or traders have sold short but not yet covered or closed out)

Answer 12

Stocks that in the pre-market gapped up or down at least 2% Stocks that have traded at least 50,000 shares in the pre-market Stocks that have an average daily volume of over 500,000 shares Stocks that have Average True Range of at least 50 cents (how large of a range a stock has on average every day) There is a fundamental catalyst for the stock As a rule, I do not trade stocks with an enormous short interest higher than 30% (the short interest is the quantity of stock shares that investors or traders have sold short but not yet covered or closed out)

Answer 13

Have gapped up or down at least $1 Have ATR of more than 50 cents Have average relative volume of at least 1.5 (the stock is trading at 1.5 times its normal volume) Have average daily trading volume of at least 500,000 shares Those are my requirements for a stock to be in play.

Answer 14

What peoples are offering - bid is always lower , the difference is bid ask spread

Answer 15

What sellers are demanding