Glossary

Don’t understand some of the trader lingo being thrown around in our trading community?

Catch up to speed here with the glossary!

Missing some of the jargon? Let us know in chat and we’ll add it!

A

Air – A stock moving up on very small volume.

Air Pocket – A large space/gap between support or resistance levels

Ask/Offer – Price that seller is willing to sell.

All or none – Order that has to be executed in the entire position or nothing at all.

ATM – At the market. This means a broker-dealer will sell shares on the open market to raise money for a company.

B

Bearish – Having a bias that a stock or market will go down.

Bid – Price that a buyer is willing to pay.

#BigMacs – any win of $1,000 or less.

Block order – Block orders are large orders placed to buy or sell a security usually over 10,000 shares.

Blow up – Losing a huge amount of money compared to what you normally make in the market or
potentially losing your entire account/accounts.

Breakdown – A stock’s price falls below prior support.

Breakout – A stock’s price goes above prior resistance.

Bullish – Having a bias that a stock or market will go up.

C

Candlestick – A type of chart used to show how much a stock has moved in the timeframe designated. A single candle will show the open, close, low, and high of the specified time the candlestick represents.

Consolidation – When a security is neither continuing up or down but is stuck in a limited price range.

Closing print – The final price of the day for an equity.

D

Dark pool – An exchange where traders/ institutions are able to anonymously make trades.

Dilution – Company issuing new shares of a security or when option holders or employees exercise their options. Outstanding shares increases and shareholders have less percent ownership of a company.

E

Easy to borrow (ETB) – The ability to short an equity without having to locate shares.

EFFECT – when the SEC acknowledges and confirms a company’s intention to register securities (i.e. an S-3 filing followed by an EFFECT filing means the shelf offering is now live and can be officially implemented)

F

Falling Knife – This is a term used to describe a stock that is going down quickly in an extreme manor, opposite of parabolic.

Fill – The amount of shares executed within a trade.

Financial Institution – Entity that deals with financial transactions such as loaning money or investments, deposits etc.

Float -Shares that are available for the public to trade.

G

Grinding – Stock moving in a slow tight range either up or down.

H

Halt (T1) – Trading suspension of a security due to news pending.

Halt (T2) – News has been disseminated on the security that was previous marked as a T1 halt but remains halted.

Halt (T3) – Security previous marked as a T2 halt now has a definitive time for resumption.

Halt (T12) – Trading suspension of a security due to request for more info, security technically has no timetable for resumption and theoretically could halt indefinitely.

Hard to Borrow (HTB) – This means you will have to locate shares to be able to short a specific security.

I

Infinite dump – A dramatic and very sudden drop in the price of a stock, usually characterized by a very large red candle blowing through multiple support levels with little to no bounces.

Initial public offering (IPO) – Shares of a company are offered for sale to the public.

Institutional investor – Company that uses money to purchase securities and other assets to invest in.

Invest – To put money into something that may offer the opportunity to profit from.

K

#KISS – Keep It Simple, Stupid; Madaz’s no non-sense approach to trading which involves keeping things basic and simple.

L

Limit Order – Specified price to buy or sell a security.

Line in the Sand – see Over/Under (o/u)

Lull – The middle portion of the day (typically between the hours of 11AM – 2PM EST) when volume dries up and the edge is usually significantly lower.

M

Margin – Borrowing money from a broker to trade larger size than you would be able to on your accounts cash value.

Market Capitalization (Market Cap) – Signifies the value of a company in dollars by its outstanding shares.

Market Maker (MM) – Bank or brokerage that provides liquidity for bids and offers.

Market Order – Buy or sell to be executed at current prices of a given security.

N

#NoBlowUpChallenge – A commitment to trade responsibly without any major drawdowns.

O

Odd lot – Order that consists of less than 100 shares of stock.

Offering – When a company wants to raise capital and shares of the equity are sold. This also increases the float.

Order – A decision to buy or sell a stock.

Outstanding shares – Amount of shares held by its shareholders.

Over/Under (o/u) – The point of inflection of terms of price where sentiments and biases change from bullish to bearish or bearish to bullish; also known as the Line in the Sand.

P

Parabolic – Extreme and rapid rise in a stocks price compared to prior price action, opposite of falling
knife.

Panic Pop – A sudden and dramatic spike in the price of a stock.

Panic Pop Short – The immediate reversal following the sudden and dramatic spike in the price of a stock.

Pocket changesee Wallet Padders.

Position – When someone has shares long or short of a stock.

Q

Quote – Price at which a security is trading.

R

Range – The high and low prices for a stock during a specific period of time.

Range bound – When the price of a security is stuck in a tight range.

Real time – The actual time something is happening, in trading it is current prices without any delay.

Resistance – A price level which a stock has a hard time going above.

Reverse Split R/S – When a company decreases the amount of shares in the market and increases the price of the stock.

Route – An order directed to a specific market maker.

S

Scalp – Quick trade that takes advantage of small market fluctuations.

Share – Ownership certificates of a company.

Short squeeze – A quick increase in stocks price when demand outweighs supply. Shorts scramble to cover their positions driving up the stocks price with their buying.

Shelf – A provision that allows an entity to sell parts of the security over a period of time; a common way for a company to file for a shelf offering is to submit a form S-1 or S-3

Short – Selling a security that one doesn’t own in hopes to buy back a lower price for profit. Buying back higher results in a loss.

Size – The amount of shares you are trying to fill or the shares you have in a current position.

Spike – Quick panic to the upside.

Squeeze From Hell – A huge spike in the stock usually out of nowhere characterized by a very large green candle. The opposite of an infinite dump.

Short Sale Restriction (SSR) – a restriction on short sales that is triggered when a security hits -10% intraday. Short sales are now only allowed to open a position on an uptick in the price of the security. Carries over to the next trading as well on the security.

Stock – Ownership in a company signified by a share.

Stop-limit order – Limit order to buy or sell a stock automatically at limit price or better when triggered.

Support – A price level which a stock has a hard time going below.

Swing trade – A trade that typically is held overnight and tries to capture a longer term move in a stock.

T

Thin – A stock that has a relatively small bid or offer and could have a wide spread.

Trade – Buy or sell.

#TraderNap – a preventive measure taken by Madaz, where he takes a nap, as a means to avoid trading during hours where there is no edge, typically during the hours of 11AM-2PM EST.

Trading platform – Software used to execute trades.

Trend – Direction in which a security is moving.

W

Wallet Padders – Any win of $500 or less.

Warrant – A derivative that gives the option to buy or sell a security and is dilutive.

Washout – Sudden and dramatic drop in the price of a stock.

Washout Long – The immediate bounce that occurs after a sudden and dramatic drop in the price of a stock.

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