Categories: Finance and Law

Trading Lingo: 8 Stock Trading Terms You Should Know

<p style&equals;"text-align&colon; justify&semi;">Stock trading has undergone significant changes since the Internet has made its grand appearance&period; Obviously pointing out that it is hell bent on staying the top hype of this part of the 21st century&comma; the Web has changed everything – from using navigation&comma; to stock trading&period;<&sol;p>&NewLine;<p><&excl;-- trending --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; block&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"6346648682" data-ad-format&equals;"auto"><&sol;ins><&sol;p>&NewLine;<p>With this in mind&comma; a plethora of untrained&comma; part-time investors have started approaching the market&comma; and if you are one of those with their mind set on making easy pocket money&comma; you’ll want to familiarize yourself with the basic terms&comma; at the very least&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Investor<&sol;h2>&NewLine;<table>&NewLine;<tbody>&NewLine;<tr>&NewLine;<td>&NewLine;<&excl;-- trending2 --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; inline-block&semi; width&colon; 336px&semi; height&colon; 280px&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"7823381883"><&sol;ins>&NewLine;<&sol;td>&NewLine;<td>&NewLine;<&excl;-- trending2 --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; inline-block&semi; width&colon; 336px&semi; height&colon; 280px&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"7823381883"><&sol;ins>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<&sol;tbody>&NewLine;<&sol;table>&NewLine;<p style&equals;"text-align&colon; justify&semi;">To start with the most basic of terms &lpar;what you are on the market&rpar;&comma; an investor is the owner of an <a href&equals;"https&colon;&sol;&sol;en&period;wikipedia&period;org&sol;wiki&sol;Asset">asset&period;<&sol;a><&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Broker<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The buyer&sol;seller of an investment&comma; who does the transaction in your name&comma; in exchange for a fee or a commission&period; An integral part of any trade that takes place&comma; brokers are irreplaceable&comma; unless you should choose to specialize both in investing and in stock broking&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Asset<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">&NewLine;<&excl;-- trending ligo --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; inline-block&semi; width&colon; 728px&semi; height&colon; 300px&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"1776848282"><&sol;ins><&sol;p>&NewLine;<p>This is basically everything that a company owns – from cash&comma; equipment&comma; technology&comma; to land – this shows the total of wealth a company owns<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Buy<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">This means &OpenCurlyDoubleQuote;to take a position”&comma; or simply to buy shares&period; It might seem obvious&comma; but defining exactly what it means can’t really hurt&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Sell<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Alternatively&comma; to sell means to get rid of your shares&period; This occurs in two instances&comma; the former being what you’re aiming at&comma; and the latter a failsafe procedure so as to not go through bankruptcy&period; The first instance occurs once you’ve reached your trading goal&comma; and the second happens in cases where your stock is doing bad&comma; so you rid yourself of it&comma; in order to cut losses&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Penny stock<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">&NewLine;<&excl;-- ligo --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; inline-block&semi; width&colon; 728px&semi; height&colon; 15px&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"3253581485"><&sol;ins><&sol;p>&NewLine;<p>This being what the entire world of online stock trading revolves around&comma; we should probably elaborate on just what it exactly is&period; Typically&comma; a stock that sells for less than &dollar;1 a share&comma; is called a penny stock &lpar;even though it may rise to the heights of as much as &dollar;10 a share&period; Learn more about penny stock investment for the master millionaire <a href&equals;"http&colon;&sol;&sol;www&period;timothysykes&period;com&sol;penny-stocks">Timothy Sykes<&sol;a>&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Going long<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">When it comes to penny stocks&comma; you either make money when the stock is gaining&comma; or when it’s failing in value&period; &OpenCurlyDoubleQuote;Going long” cover the former part of this equation&period; In layman’s terms – it means betting that the stock will increase in price&comma; the name of the game being buying low and selling high&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Short sell<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">This part is the other end of the game – even though most traders focus on going long&comma; there are known cases of those earning fortunes for going through the short sell tactic&period; When it comes to this part of stock trading&comma; you borrow shares from your broker and bet that the stock is going to go through a decrease in price&period; In the end&comma; you buy the stock so as to cover your negative position&period; This may sound strange&comma; but&comma; seeing as how most penny stock companies are destined to fail&comma; it is a valid way to earn money&period;<&sol;p>&NewLine;<p><&excl;-- trending ligo --><br &sol;>&NewLine;<ins class&equals;"adsbygoogle" style&equals;"display&colon; inline-block&semi; width&colon; 728px&semi; height&colon; 300px&semi;" data-ad-client&equals;"ca-pub-4800536516440217" data-ad-slot&equals;"1776848282"><&sol;ins><&sol;p>&NewLine;<p>So&comma; there you have it&excl; A list of most basic stock trading terms to get into&period; Admittedly&comma; you will have to go through a ton of additional research&comma; if you’ve set your mind towards earning&comma; but these terms should&comma; at the very least&comma; get you going&period;<&sol;p>&NewLine;

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 16+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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