A – C
Accumulation
Institutional buying period where a stock trades in a tight range before a breakout.
ADR
Average Daily Range. The average distance a stock moves from high to low each day.
After Hours
Trading that occurs after the 4:00 PM EST market close.
Algo
Automated software used by hedge funds to execute trades at lightning speed.
All-Time High (ATH)
The highest price a stock has ever reached in its history.
Arbitrage
Exploiting price differences of the same stock across different exchanges.
Ascending Triangle
Bullish chart pattern with a flat top and rising support line.
Ask
The price a seller is willing to accept; the price you pay to buy now.
Asset Class
A group of similar financial instruments (Stocks, Bonds, Crypto).
ATR
Average True Range. A measure of volatility over a set period of time.
At the Market (ATM)
Executing a trade immediately at whatever the current best price is.
Averaging Down
Buying more of a stock as the price drops to lower your average cost (Highly risky).
Bear Trap
A false breakdown that reverses quickly to trap short sellers.
Beta
A measure of a stock's volatility in relation to the overall market.
Bid
The price a buyer is willing to pay; the price you get when selling now.
Bid-Ask Spread
The difference between the highest bid and the lowest ask price.
Block Trade
A massive trade (usually 10,000+ shares) executed by institutions.
Bollinger Bands
Volatility bands placed above and below a moving average.
Breakout
When price moves through a key resistance level on high volume.
Bull Trap
A false breakout that reverses quickly to trap long buyers.
Buying Power
The total capital (including margin) available to open a trade.
Candlestick
A chart type showing the open, high, low, and close for a period.
Capitulation
The final panic sell-off at the bottom of a major downtrend.
Cash Account
An account where you can only trade with the money you deposited.
Chasing
Entering a trade after the move has already started, often out of FOMO.
D – F
Dark Pool
Private exchanges where large institutions trade blocks of shares away from public eyes.
Day Order
An order that expires if it is not filled by the end of the trading day.
Dead Cat Bounce
A brief recovery in a crashing stock before it continues downward.
Death Cross
When the 50-day moving average crosses below the 200-day average.
Delta
An option Greek measuring price sensitivity relative to the underlying stock.
Descending Triangle
A bearish pattern with a flat bottom and descending resistance.
Distribution
A phase where big players sell their shares to retail at the top of a move.
Divergence
When price and an indicator (like RSI) move in opposite directions.
Double Bottom
A bullish reversal pattern signaling a price floor has been hit twice.
Double Top
A bearish reversal pattern showing price failing twice at the same resistance.
Drawdown
The percentage drop from your account's highest peak balance.
Doji
A candle with the same open and close, signaling indecision.
Edge
A repeatable strategy that has a statistical probability of success.
EMA
Exponential Moving Average. A trend line that weighs recent price more heavily.
Entry Point
The price level where a trader chooses to start a position.
Equity
The total value of your account, including cash and current stocks.
ETF
A fund that tracks a specific index or sector and trades like a stock.
Execution
The act of completing a buy or sell order in the market.
Exit Point
The price level where a trader closes a position for profit or loss.
Fade
Trading against a move (e.g., shorting a stock that is moving up too fast).
Fibonacci
Mathematical ratios used to identify potential support and resistance levels.
Float
The total number of shares available for the public to trade.
FOMO
Fear Of Missing Out. Trading based on emotion rather than a plan.
Forex
The global marketplace for trading national currencies.
Fundamental Analysis
Evaluating a stock based on its financial statements and earnings.
G – L
Gamma Squeeze
A rapid price spike caused by mass call option buying forcing market maker hedging.
Gap Up
When a stock opens higher than its previous day's closing price.
Golden Cross
When the 50-day moving average crosses above the 200-day average.
GTC
Good 'Til Canceled. An order that stays active until you cancel it.
Halt
A temporary pause in trading triggered by the exchange due to high volatility.
Hammer
A bullish reversal candle with a long lower shadow and small body.
Hard to Borrow
Stocks that are difficult to find for shorting, often requiring extra fees.
Head and Shoulders
A classic bearish reversal chart pattern showing three peaks.
High of Day (HOD)
The highest price a stock has reached during the current session.
Hotkeys
Keyboard shortcuts for lightning-fast order execution.
Iceberg Order
A large order hidden by only showing a small portion on Level 2.
Implied Volatility (IV)
The market's expectation of how much a stock will move in the future.
Indicator
Visual math tools like RSI or MACD used to analyze trends.
Inside Bar
A candle whose range is completely within the previous candle's range.
Institutional Flow
Large money entering the market from banks and hedge funds.
Intraday
Everything that happens within a single trading day's regular hours.
IPO
Initial Public Offering. The first time a company sells shares to the public.
Island Reversal
A price pattern separated from the rest of the chart by gaps on both sides.
Laggard
A stock that is underperforming its sector or the broader market.
Lagging Indicator
An indicator that confirms a trend after it has started (e.g., MAs).
Leading Indicator
An indicator that attempts to predict future moves (e.g., RSI).
Level 2
The order book showing market depth and all current buy/sell orders.
Limit Order
An order to buy/sell at a specific price or better.
Liquidity
How easily you can buy or sell shares without moving the price.
Long
Buying an asset with the expectation that its value will rise.
M – P
MACD
Moving Average Convergence Divergence. A trend-following momentum indicator.
Margin
Money borrowed from a broker to purchase more shares than you have cash for.
Margin Call
A demand for more cash when the value of a margin account falls too low.
Market Maker
Firms that provide liquidity by taking the opposite side of trades.
Market Order
An order to buy/sell immediately at the current best available price.
Micro-Cap
Companies with a small market value, usually very volatile and low float.
Momentum
The strength and speed of a stock's price movement.
Moving Average
The average price of a stock over a specific number of time periods.
Naked Option
An option trade where the seller does not own the underlying stock.
Offer
Another term for the "Ask" price on the Level 2.
Open Interest
The total number of outstanding option contracts for a specific strike.
Overbought
When a stock has risen too much and may be due for a pullback.
Oversold
When a stock has fallen too much and may be due for a bounce.
Paper Trading
Using a simulator to trade with fake money for practice purposes.
Pattern Day Trader (PDT)
A rule requiring $25k in equity for frequent intraday trading.
Penny Stock
Low-priced stocks (usually under $5) of small, speculative companies.
Position Size
The total dollar amount or number of shares held in a single trade.
Pre-Market
Trading that happens before the 9:30 AM EST market open.
Price Action
The movement of a stock's price plotted over time without indicators.
Profit Factor
Total gross profit divided by total gross loss for a strategy.
Psychology
The mental state and emotional control needed for successful trading.
Pullback
A temporary drop in price during an overall bullish uptrend.
Pump and Dump
Illegal act of inflating a stock's price to sell shares at the top.
Put Option
A contract giving the owner the right to sell a stock at a set price.
P/E Ratio
Price-to-Earnings ratio; used to value a company relative to its profits.
R – S
Rally
A period of sustained increases in the price of a stock or market.
Range
The distance between the high and low price over a set timeframe.
Resistance
A price "ceiling" where sellers usually step in to prevent a rise.
Reversal
When a trend changes direction (e.g., an uptrend turning into a downtrend).
Risk Management
Rules and techniques used to protect capital from large losses.
Risk-to-Reward (R:R)
The ratio of potential loss to potential profit on a given trade.
RSI
Relative Strength Index. A momentum oscillator used to find overbought levels.
Runner
A stock that makes a massive move in a single day on high volume.
Scalping
Executing many trades per day for very small, rapid profits.
Sector
A group of stocks in the same industry (e.g., Tech, Energy, Pharma).
Short Selling
Profiting from a stock's price drop by selling borrowed shares first.
Short Squeeze
When rising prices force short sellers to buy back shares, causing a spike.
Slippage
The difference between your expected price and the actual fill price.
Smart Money
Institutional investors who have the most influence on price movement.
Spread
The difference between the Bid and the Ask price on a stock.
Stop Loss
An order to sell automatically if a stock hits a specific loss level.
Support
A price "floor" where buyers usually step in to prevent a fall.
Swing Trading
Holding a stock for several days or weeks to capture a price move.
Sentiment
The overall attitude of investors toward a particular security or market.
Shares Outstanding
The total number of shares of a company held by all its shareholders.
Small Cap
Companies with a relatively small market capitalization.
Strike Price
The set price at which an option contract can be exercised.
Standard Deviation
A mathematical measure of how much price varies from the average.
Scalability
The ability to increase position size without affecting the strategy's quality.
Supply Zone
An area on a chart where sellers are historically aggressive.
T – Z
Take Profit
A target price where you plan to close a winning trade for a gain.
Tape Reading
Analyzing the Time & Sales to see real-time institutional order flow.
Technical Analysis
Studying charts and volume to predict future price movements.
Theta
The Greek representing the rate of time decay in option contracts.
Ticker
The unique characters used to identify a stock (e.g., AAPL, NVDA).
Time & Sales
A live feed of every trade executed, showing price, time, and size.
Trailing Stop
A stop loss that moves up automatically as your profit increases.
Trend
The general direction of the market (Uptrend, Downtrend, or Sideways).
Uptrend
Price movement characterized by higher highs and higher lows.
Value Stock
A stock that appears to be trading for less than its actual worth.
Vega
The Greek measuring an option's sensitivity to changes in volatility.
Volatility
A measure of how fast and wide a stock's price fluctuates.
Volume
The total number of shares traded during a specific timeframe.
Volume Profile
An indicator displaying trading activity at specified price levels.
VWAP
Volume Weighted Average Price. A key intraday benchmark for traders.
Wash Sale
A tax rule regarding the rebuying of a stock sold at a loss within 30 days.
Whipsaw
Erratic price movement that triggers stops in both directions quickly.
Wick
The thin lines on a candle showing the high and low prices reached.
Yield
The income generated from an investment, often expressed as a percentage.
0DTE
Options that expire on the same day they are traded; extremely high risk.
52-Week Range
The lowest and highest price at which a stock has traded over the last year.
Tick
The smallest upward or downward movement in the price of a security.
Trailing Stop
A stop order that follows the price at a set distance.
Volume Spike
A sudden, massive increase in trading volume signaling institutional interest.
Z-Score
A statistical measure used to identify how far price is from the mean.
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