A Glossary of All the Terms You Need to Know in Trading (T-Y)
We have finally come to the last part of the glossary! Kudos to those who have read the other parts (A-C, D-F, G-L, M-O, P-S). After understanding the terms here, you will be fluent in trading lingo.
T
Take profit: The price at which you took a profit.
The price which you took a profit could differ from your target price.
Target price (TP): The price which you intend to close the trade at for a profit.
Chart of DLR, The TP is shown by the faint green line at $137
Technical analysis (TA): The examination and prediction of future price movement based on historical price movement.
Technical analysis being applied to APTV
Ticker symbol: The abbreviation assigned to a security for trading.
Eg. The ticker symbol for Apple is AAPL. Starhub’s ticker symbol is CC3.
Trailing stop loss (Trailing SL): A dynamic stop loss which inches towards your target price as prices moves in your favor. It does not move when prices move against you.
Read about the 4 ways you can use a stop loss.
Trendline: A sloped line which prices respect and adhere to.
Trendline (in blue) on the chart of Apple
V
Volatility: The magnitude of price movements.
A stock is not considered to be volatile when its price movement ranges between small to average. A stock is considered to be volatile when its price movement is larger than usual.
A non-volatile period of BoeingA volatile period of Boeing. Notice the larger price range and movement?
Volume: The number of shares transacted in a period.
Y
Yield: The income from an investment in the form of dividends for a stock, and interest paid out by a bond.
You have made it! You are be able to participate and better appreciate trading talk, which will speed up your learning.
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