StockT Online Learning

Glossary

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SHLD$60.23 +0.15%
IGV$108.43 +0.18%
XSW$197.93 -0.83%
FDN$291.75 +0.84%
COHR$337.04 +5.59%
LITE$1,085.42 +3.79%
CCL$25.76 +2.75%
STT$175.96 +0.77%
VLO$406.30 -0.53%
MPC$422.33 +0.52%

SPY$769.64 +0.74%
QQQ$749.58 +1.02%
DIA$511.10 +0.49%
IWM$281.52 +0.90%
JETS$28.14 +0.18%
ITA$207.79 -0.12%
XAR$233.09 +0.64%
PPA$155.69 +0.08%
SOXX$588.90 +2.18%
SMH$630.60 +2.07%
XSD$555.21 +3.59%
SHLD$60.23 +0.15%
IGV$108.43 +0.18%
XSW$197.93 -0.83%
FDN$291.75 +0.84%
COHR$337.04 +5.59%
LITE$1,085.42 +3.79%
CCL$25.76 +2.75%
STT$175.96 +0.77%
VLO$406.30 -0.53%
MPC$422.33 +0.52%

119 of 119 terms

1% rule: A guideline to risk no more than 1% of your account on any one trade.
10-K: A US company's annual report filed with the SEC.
10-Q: A US company's quarterly report filed with the SEC.
After-hours: Trading that takes place after the regular session closes.
Ask: The lowest price a seller is currently willing to accept.
Asset allocation: How a portfolio is divided among asset classes such as stocks, bonds and cash.
ATR: A measure of a stock's typical daily price range, used to size stops and gauge volatility.
Balance sheet: A snapshot of a company's assets, liabilities and equity at a point in time.
Bear market: A sustained period of falling prices, often defined as a drop of 20% or more from a recent high.
Beta: A measure of how much a stock tends to move relative to the market. Above 1 means more volatile than the market.
Bid: The highest price a buyer is currently willing to pay.
Book value: Total assets minus total liabilities; what shareholders would own on paper.
Breakout: Price moving decisively through support or resistance, ideally on higher volume.
Broker: A firm that executes buy and sell orders on your behalf.
Bull flag: A continuation pattern: a sharp rise followed by a short, shallow consolidation, then a likely resumption upwards.
Bull market: A sustained period of rising prices, often defined as a rise of 20% or more from a recent low.
Buyback: A company buying its own shares, reducing the share count.
Candlestick: A chart symbol showing the open, high, low and close for a period. The body spans open to close; the wicks show the high and low.
Capital gains: Profit from selling an asset for more than you paid. Often taxed differently depending on holding period.
Cash flow statement: A report of the cash a company generates and uses, divided into operating, investing and financing.
Correction: A decline of 10% or more from a recent high, short of a bear market.
Correlation: How closely two investments move together. Low correlation improves diversification.
Cup and handle: A bullish continuation pattern: a rounded base followed by a small pullback before a breakout.
Day trading: Opening and closing positions within the same trading day.
Death cross: The 50-day average crossing below the 200-day average, often viewed as a bearish sign.
Debt-to-equity: Total debt divided by shareholders' equity; a measure of leverage.
Diversification: Spreading money across different assets and sectors so that one failure matters less.
Dividend: A portion of company profits paid to shareholders, usually quarterly.
Dividend yield: Annual dividends per share divided by the share price.
Doji: A candlestick whose open and close are nearly equal, signalling indecision.
Dollar-cost averaging: Investing a fixed amount at regular intervals regardless of price.
Double bottom: A reversal pattern with two similar lows that suggests a potential bottom.
Dow Jones Industrial Average: A price-weighted index of 30 large US companies.
Drawdown: The decline from a portfolio's peak value to a subsequent low.
Earnings: A company's profit after all expenses, interest and taxes.
EMA: A moving average that gives more weight to recent prices.
EPS: Net income divided by the number of shares outstanding.
ETF: A fund that holds a basket of assets and trades like a stock throughout the day.
Exchange: A regulated marketplace where securities are listed and traded, such as the NYSE or Nasdaq.
Forward P/E: Price divided by expected future earnings per share.
Free cash flow: Operating cash flow minus capital expenditures; cash available for dividends, buybacks and debt repayment.
Gap: A price jump between one session's close and the next session's open, often caused by overnight news.
Golden cross: The 50-day average crossing above the 200-day average, often viewed as a bullish sign.
Gross margin: Revenue minus cost of goods sold, as a percentage of revenue.
Growth investing: Buying companies expected to grow revenue and earnings faster than the market.
GTC: An order that stays active until it is filled or you cancel it.
Guidance: A company's own forecast of upcoming results.
Head and shoulders: A reversal pattern with three peaks, the middle highest, that signals a potential top when the neckline breaks.
Hedge: A position taken to offset the risk of another holding.
Income statement: A report of revenue, expenses and profit over a period.
Index: A basket of securities used to measure part of the market, such as the S&P 500.
IPO: A company's first sale of shares to the public.
Large cap: A company with a large market capitalization, commonly above about $10 billion. Generally more stable and liquid.
Level 2: A data display showing buy and sell orders at multiple price levels beyond the best bid and ask.
Limit order: An order to buy at or below, or sell at or above, a specified price.
Liquidity: How easily an asset can be bought or sold without moving its price. High-volume stocks are more liquid.
Long: Buying a security expecting its price to rise.
MACD: A momentum indicator comparing a fast and a slow moving average, with a signal line for crossovers.
Margin: Money borrowed from a broker to buy securities. It magnifies gains and losses.
Margin call: A broker's demand to deposit more money or sell positions when account equity falls below the required level.
Margin of safety: The gap between a stock's estimated worth and its price, which protects against errors.
Market capitalization: Share price multiplied by the number of shares outstanding; the market's value of the whole company.
Market maker: A firm that continuously quotes buy and sell prices, providing liquidity for a security.
Market order: An order to buy or sell immediately at the best available price.
Moat: A durable competitive advantage that protects a company's profits.
Momentum: The speed and persistence of a price move. Stocks with strong recent momentum tend to continue in the short run.
Moving average: The average closing price over a set number of days, plotted as a smoothed line. Common lengths are 20, 50 and 200 days.
Mutual fund: A pooled investment fund priced once per day that holds a portfolio of securities.
Nasdaq: A US exchange that is fully electronic and home to many technology companies.
NYSE: The largest US stock exchange by market value of its listed companies.
Operating margin: Operating profit as a percentage of revenue.
OTC: Trading conducted through a dealer network rather than a major exchange. Often less transparent and less liquid.
Overbought: A condition where a price has risen quickly and may be due for a pause or pullback.
Oversold: A condition where a price has fallen quickly and may be due for a bounce.
P/B ratio: Share price divided by book value per share.
P/E ratio: Share price divided by earnings per share. Shows how much investors pay for each dollar of profit.
P/S ratio: Market cap divided by revenue.
Paper trading: Practising with simulated money at real market prices.
Payout ratio: The share of earnings paid out as dividends.
PDT rule: US rule requiring $25,000 minimum equity in a margin account that makes four or more day trades within five business days.
PEG ratio: The P/E ratio divided by the expected earnings growth rate.
Position size: The amount of money or number of shares in a single trade or holding.
Position trading: Holding positions for weeks to months to capture a larger trend.
Pre-market: Trading that takes place before the regular session opens. Volume is lower and spreads are wider.
Public company: A company whose shares are listed and traded on a stock exchange.
Pullback: A short decline within a larger uptrend.
Pump and dump: A scheme that promotes a stock to inflate its price so promoters can sell at the top. Illegal.
Rebalancing: Periodically adjusting holdings back to target weights.
Relative strength: How a stock's performance compares with a benchmark or its peers.
Resistance: A price area where selling has repeatedly prevented further gains.
Revenue: Total money a company earns from its business before expenses.
Risk-off: A market mood where investors reduce risk, selling stocks for safer assets. StockT flags it when the S&P 500 is below its 200-day average.
Risk-reward ratio: The potential profit of a trade compared with its potential loss. 2:1 means a target twice as far as the stop.
ROE: Net income divided by shareholders' equity; how efficiently a company turns equity into profit.
RSI: A 0–100 momentum indicator. Above about 70 is considered overbought; below about 30, oversold.
S&P 500: An index of 500 large US companies, widely used as a benchmark for the US stock market.
Sector: A broad group of companies in related businesses, such as Technology, Healthcare or Energy.
Settlement: The completion of a trade when cash and shares officially change hands. US stocks settle one business day after the trade (T+1).
Share: One unit of a company's stock.
Short selling: Borrowing shares and selling them, planning to buy them back later at a lower price. Losses can exceed the amount invested.
Slippage: The difference between the price you expected and the price you actually received.
Small cap: A company with a smaller market capitalization, commonly $300 million to $2 billion. Often more volatile.
Spread: The difference between the bid and ask prices. A tighter spread means cheaper trading.
Stock: A share of ownership in a company. Owners may receive dividends and vote on certain company matters.
Stock split: A company divides each share into several, lowering the price per share without changing the company's total value.
Stop order: An order that becomes a market order once the price reaches a set stop level; commonly used to limit losses.
Stop-limit order: An order that becomes a limit order once the stop price is reached.
Stop-loss: A pre-set exit price to limit a loss if a trade moves against you.
Support: A price area where buying has repeatedly prevented further declines.
Swing trading: Holding positions for days to a few weeks to capture a price swing.
Ticker symbol: A short code that identifies a listed security, such as AAPL for Apple.
Total return: Price change plus dividends, expressed as a percentage.
Trailing stop: A stop that moves up as the price rises, staying a set distance behind it, and does not move down.
Trend: The general direction of price: up, down or sideways.
Value investing: Buying stocks priced below an estimate of their underlying worth.
Value trap: A stock that looks cheap on ratios but is cheap because its business is deteriorating.
Volatility: How much and how quickly a price moves. Higher volatility means higher risk and potential return.
Volume: The number of shares traded in a given period.
VWAP: The average price of the day weighted by volume. Day traders use it as a reference for intraday value.

Model output for education and research — not financial advice or a personal recommendation; your decisions are yours. Always do your own research and manage your risk.