Glossary

A stock moving up on very small volume

A large space/gap between support or resistance levels

Price that seller is willing to sell

a stock that continues in a downtrend for the entire day

Order that has to be executed in the entire position or nothing at all

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

a rule that restricts a company to a secondary offering of only 1/3 of their MVPHS (Market Value of Publicly Held Shares) over a 12 month rolling period if their MVPHS over the past 60 calendar days is less than $75 Million

Someone who is holding a depreciating position at a bad cost basis; comes from the expression “left holding the bag”

Having a bias that a stock or market will go down

Price that a buyer is willing to pay

any win of $1,000 or less

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

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

A stock’s price falls below prior support

A stock’s price goes above prior resistance

Having a bias that a stock or market will go up

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

when a stock trades in a not very smooth and often grindy or directionless fashion

The mechanism which controls whether or not the stock gets halted due to volatility reasons

An event hosted by the company to discuss various topics such as major company news or earnings; usually has a major impact on the price action of the stock

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

a variation of a stop hunt and a common tactic by manipulators to push a stock past a obvious resistance level, often to the next resistance level, to trigger stops and induce a short squeeze thereby filtering out short sellers to create liquidity to sell a long position into

The final price of the day for an equity

An exchange where traders/ institutions are able to anonymously make trades

A temporary recovery in the price of a stock after a very substantial fall. Comes from the idea that “even a dead cat will bounce if it falls from a great height.”

the ability to have conviction to hold a difficult position

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.

falling for exaggerated or fraudulent claims made by others leading bad trading decision often resulting in losses

The ability to short an equity without having to locate shares

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)

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

an error in entering in the price or number of shares in your order and sometimes actually sending that order out and getting it executed in the open market; could result in unnecessary losses

The amount of shares executed within a trade.

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

When you finish a trading day with $10,000 in realized profits or more.

Shares that are available for the public to trade.

When someone accumulates a large percentage of the float, or free trading shares

anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

a strategy the involves going short on a stock, usually for a longer hold, on a stock that has had it’s first red day after a multiday run up

Any space or void in between candles on a chart; usually acts as a strong support/resistance level

When the price of a securities reaches and covers that space or void (gap)

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

Trading suspension of a security due to news pending.

News has been disseminated on the security that was previous marked as a T1 halt but remains halted.

Security previous marked as a T2 halt now has a definitive time for resumption.

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

The lower and upper bands in which the stock will halt if trading were to exceed them and persist for more than 15 seconds. Also known as LULD.

This means you will have to locate shares to be able to short a specific security.

a common misspelling of the word HOLD meaning to hold onto a position as long as you possibly can, popular in the crypto or reddit community; also can stand for Hold On for Dear Life

a very large order that is divided into a into smaller orders, typically used in tandem with an algo in order to keep the full size of the position hidden to minimize market influence as it’s being executed; often employed by big institutions

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.

Shares of a company are offered for sale to the public.

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

Institutional Ownership; usually the higher the number (>40%) the more manipulated the stock may be.

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

When you make next to nothing in the trading day

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

the order book of all the live and unexecuted bids and asks; also known as the Market Depth or Montage on DAS Trader Pro

Specified price to buy or sell a security.

see Over/Under (o/u)

a dramatic move in the price action of a stock that allows the insiders/manipulators to liquidate their shares into, such as News or a Stop Hunt

Taking a big loss; comes from the expression, lose the shirt off one’s back

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.

the person or persons responsible for controlling or manipulating the price action of a stock to push an agenda, typically to seek or manufacture liquidity to sell shares.

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

When the broker closes your position because you are red on your position beyond their risk threshold

Signifies the value of a company in dollars by its outstanding shares.

Bank or brokerage that provides liquidity for bids and offers.

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

Inevitable trading losses that lead to valuable lessons which ultimately help us progress to become better traders.

when a stock gets temporarily propped slightly over a key resistance or breakout level in order to allow the manipulator to unload shares into short covers and/or long chasers; once the microshelf is complete the bid is usually pulled and the stock’s price typically drops dramatically in rapid fashion.

Market Value of Publicly Held Shares

A commitment to trade responsibly without any major drawdowns.

Order that consists of less than 100 shares of stock.

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

A decision to buy or sell a stock.

Amount of shares held by its shareholders.

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.

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

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

The immediate reversal following the sudden and dramatic spike in the price of a stock.

a person who exits a position too early thereby leaving [often a lot] of money on the table; popularized in the 2000 financial crime drama film, Boiler Room.

see Wallet Padders.

When someone has shares long or short of a stock.

Premarket Highs

a stock that is untradable or behaves in such an unpredictable or erratic manner that it makes it difficult to execute any clean or easy trades on it, could also be used to describe a stock or company that consistently performs very poorly on a regular basis; also known as a Turd

the final hour of the trading day (3PM-4PM EST)

Price Per Share

a large buy order sitting on the bid, which may or may not be a spoof, that is holding up the price of the security; often used as part of the two-word, compound word: Bid Prop

the date on which derivatives of stock index futures, stock index options, stock options, and individual stock futures expire simultaneously often resulting in unusually high volatility than normal

Price at which a security is trading.

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

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

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

The process of predetermining a max sized position and splitting it up into various entries to scale into a position provided that you have conviction in having the correct direction of the stock and having the trade eventually go in your favor; once you are at max position size, you must stop out or recycle some of the shares so you are able to readd at the next support/resistance level without exceeding the predetermined max position size.

A price level where supply exceeds demand in which a stock has a hard time going above.

When a company decreases the amount of shares in the market and proportionally increases the price of the stock such that the valuation or market capitalization of the company does not change in the process.

Another name for manipulator.

An order directed to a specific market maker.

When the bid support or bid prop gets pulled or yanked resulting in a dramatic drop in the price of a stock

Support/Resistance

Quick trade that takes advantage of small market fluctuations.

Ownership certificates of a company.

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

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

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.

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

a large buy order sitting on the bid or sell order sitting on the ask, which may or may not be hidden, that is absorbing all the transactions going through at that specific price

Quick panic to the upside.

A huge spike in the stock usually out of nowhere characterized by a very large green candle blowing through multiple resistance levels like they don’t even exist. The opposite of an infinite dump.

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.

Ownership in a company signified by a share.

When a bunch of stop orders left open get taken out in a fake breakout or fake breakdown move in one swoop; usually characterized by a wick back candle.

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

A price level where demand exceeds supply in which a stock has a hard time going below.

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

the live transactions of shares on a security that are going though; also known as the Time and Sales

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

Buy or sell.

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.

Software used to execute trades.

Direction in which a security is moving.

Institutions; also see Institutional Ownership (IO %)

Volume Weighted Average Price, a popular indicator. See this blog for more info about VWAP.

a large sell order sitting on the offer, which may or may not be a spoof, that is holding down the price of the security; often used as part of the two-word, compound word: Ask Wall

Any win of $500 or less.

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

Sudden and dramatic drop in the price of a stock.

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

A candle with a very large wick; could be to the upside or downside, usually occurs on a fake breakout or breakdown.