Basic Stock Market Terminology

Terminology and Acronyms

AH – After Hours – After the market closes.

Bag holding – Holding shares of decreasing value in the hope that they will rebound or reverse downward

Beat – Meaning that a stock has beaten earnings report expectations.
Candle/Candlestick/Candlestick chart – A box and whisker graph in which each box and whisker or “candle”
represents one day of trading activity of a given stock.

Catalyst – is an event that causes the price of a security to move, sometimes significantly. Examples of stock
catalysts are: Company earnings releases. Investor/Analyst Days. Analyst revisions. News or a press

Channeling – When a stock continues to fluctuate through a particular set of price ranges on a consistent
basis. Good for determining when to buy into a stock and when to sell, can be for a scalp play anywhere up
to a 1–3-month play depending on the timescale of the fluctuations in price.

Cloud – Ichimoku Cloud – a technical indicator that helps find support and resistance areas.

DD – Due Diligence (basically research and evaluation)

EMA – Exponential Moving Average – a type of moving average indicator frequently used in
technical analysis.

EOD – End of day

EPS – Earning per share

Float – The number of shares available for trading to the public.

FOMO – Fear of Missing Out

Former Runner – A specific ticker has moved a huge amount very quickly at some point in its life,
showing the possibility for it to happen again.

Front Loading – Slowly loading a bunch of shares in a specific stock and then ‘pumping’ it.

Halted – Trading has been stopped by the market.

HOD – High of Day

Idea – Example:” Gbr over 6.50” means that we feel that the stock has a good entry over 6.50. The
reason for “over 6.50” is because there may be resistance until that point. Ultimately you must
decide for yourself whether to enter the trade as this is individual speculation.

IPO – ‘Initial Public Offering’ – is the first time that the stock of a private company is offered to the

Knife Catch – to buy into a stock that is currently experiencing a drastic fall in price near the
lowest price before it begins to rebound. From the phrase: “One should not try to catch a falling
knife.” This is not something a beginning trader should try. Much like trying to catch an actual
falling knife it can be very risky, but with practice and familiarity with the history of a ticker a
successful knife catch can be executed.

LOD – Low of Day

LL – Limited Liquidity – Limited number of shares available for trading by a brokerage (it’s difficult
to buy into a stock that is LL)

Loading – Buying more shares of a stock that you already own.

Low Float – Relatively small number of shares available for trading. Tend to be more volatile,
meaning they move quickly. We love the low floats! The Vip low float momentum scanner helps us
find these securities on high relative volume.

Mental Stop Loss [SL] – a non-literal stop loss that you place in your mind at which point you are
determined to sell your shares of a stock. The point of doing this is to avoid having a literal stop
loss triggered in the event of a sudden drop in ticker price that does not reflect the general

MM – Market Maker

NHOD – New High of Day

Offering – The issue or sale of a security by a company

Overnight – Just as it sounds, holding shares overnight.

PDT – Pattern Day Trader

PM – Pre-Market – Before the market opens.

POS – Position in the stock. Can also mean its trash.

PR – Press Release (news)

Print – the complete execution of a trade. Example: “7.77 Print” means that the given ticker had an
order purchase for 7.77 and it was completed.

PT – Price target

Pump/Pumper/Pump & Dump – Artificially inflating the price of an owned stock through false and
misleading positive statements, in order to sell the cheaply purchased stock at a higher price. We
have zero tolerance for this behavior! Fact check literally everything with DD.

R/R – Risk to Reward ratio

R/S – ‘Reverse Split’ – a reduction in the number of a company’s traded shares (float) that results in
an increase in the par value or earnings per share.

Run/runner – A stock that drastically gains in value over a short period of time.

Scale/Scale out – To sell a portion of your shares.

Scanner – Settings to search for stocks within any given criteria with our proprietary

Short Float – The ratio of tradable shares being shorted to shares in the market.

Spread – The difference between the bid and the ask price on a stock.

Sympathy – When a stock gains value due to another stock that is associated with it also gaining
value. Sympathy can be from being in similar sectors, having remarkably similar equity curves,
being based out of the same country, similar legal effects of new laws/restrictions/regulations,

SMA – Simple Moving Average – a type of moving average indicator frequently used in technical

Squeeze – When short sellers are forced to buy back their shares due to increased buying

VWAP – Volume Weighted Average Price – calculated by taking the price multiplied by number of
shares traded then divided by the total shares traded for the day. This is an indicator used in
technical analysis.

WW – Worth Watching

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Disclaimer: This content is only intended for informational purposes. Before making any investment, you should always do your own research and analysis.
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