BASIC TERMINOLOGY

1. A stock is a type of investment representing an

ownership share in a company. Investors buy stocks that
they think will go up in value over time.
For Example:

2. Apple is a Blue Chip Stock - a large industry-leading

company.
3. Bulls are the buyers. A “bull” by definition is an investor
who buys shares because they believe the market is going
to rise; Bulls strike up!
4. Bull market is when the stock market as a whole is in a
prolonged period of increased prices (uptrend), and a
Bear market is when the stock market is in a long period
of decreased prices (downtrend).
5. Bears are the sellers. A “bear” will sell shares as they
believe the market is going to turn negative; Bears strike
down!
6. The bid price is the highest price that investors will pay to
buy a stock/option and;
the ask price is the lowest price they will accept to sell the
stock/option.
7. The difference between the two numbers (the ask price
will always be higher) is known as the bid-ask spread.
Bid-Ask spread = Ask price – bid price.
The narrower or smaller the difference between bids and
asks, the better.
8. Long- it means a bullish position (putting your money
hoping the price to go up) in which the buyer is thinking
the price of the stock or option is going to increase over
time. You can buy stocks for a company to go long or can
buy call-option contracts to go long
9. Short - the term refers to a bearish position where a
person believes that the price of the stock or option is
going to move lower over time. You can short stocks of a
company by just placing the order reversed (instead of
buying first, like you would do going long, you are just
selling first).
10. Scalping - Scalpers make several, dozens, maybe
even more trades per day. Scalers are trying to “scalp” a
small percentage(profit) from each trade. Scalping is a
general term that is used to describe rapid day trading.
Scalpers go in heavy and take the profits quickly. You can
make a lot of money in a short period of time if you know
what you are doing.
11. Day trading - Day Traders are traders who get into
trades in hopes of selling them the same day. Whether it
takes them 5 minutes or a few hours, the purpose of being
a day trader is to sell your position the same day.
12. Swing trading - Swing traders refer to that group of
people who hold their positions for more than one day.
You can hold a position for 2 days or 2 years, they both
will be considered as swing trading.
13. Technical trading - Technical traders are consumed
by charts and graphs. Watching different lines/signals on
 stock for signs of confluence/ divergence that might
indicate buy or sell signals.
14. Fundamental trading - Fundamentalists trade based
on fundamental analysis. Examining things like corporate
events like actual or anticipated earnings reports, stock
splits, reorganisations, or acquisitions.
15. Volume - Volume is the amount of an asset or
security that changes hands over some period of time,
often over the course of a day. For instance, the stock
trading volume would refer to the number of shares of
security traded between its daily open and close. Volume
can be calculated on a smaller timeframe and larger
timeframe as well.

Obviously, there is much more to the markets than just these

15 terms, but I will be explaining to them as we go further in the
course.