What exactly does the terms mean?
Glossary - B
Bear trend
When supply of shares outstrips demand and prices start to fall. If this trend continues for a number of weeks, the general sentiment becomes bearish and prices continue to fall.
Bull market
A market where the dominating trend is one of rising prices.
Bull trend
When demand for shares outstrips supply and prices start to rise. If this trend continues for a number of weeks, the general sentiment becomes bullish and prices continue to rise.
Glossary - F
Fundamental analysis
Fundamental analysis addresses the question of “what shares to buy”. It is concerned primarily with analyzing the future profitability of the company. The fundamental approach examines all the relevant factors affecting the price of a security in order to determine its intrinsic or true value. The intrinsic value is then compared with the market price and rated as being fairly priced, over priced or under priced. This approach is both soundly based and rational.
Futures
A contract that requires the delivery of a commodity at a specific price on a particular date in the future.
Glossary - I
Interest
Interest is a fee, for the privilege of using borrowed money. (If you borrow money, it comes at a cost. That cost is interest. Similarly, you can make investments that pay interest. Your reward for making the investment is the interest you’ll earn).
Interest rate
An interest rate is a percentage of the borrowed money, that the borrower has to pay as interest to the lender, over a period of time (usually a year).
Intraday
Within a single day.
Intraday trader
Someone who trades every day and closes all positions at the end of each day.
Glossary - L
Liquidity
Liquidity refers to how quickly and cheaply an asset can be converted into cash. Money (in the form of cash) is the most liquid asset. Assets that generally can only be sold after a long exhaustive search for a buyer are known as illiquid.
(Also, the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold, are known as liquid assets)
Glossary - S
Speculation
Investment of money in hope to gain, but with risk of loss. (Webster Universal Dictionary)
Stop Loss
Investopedia.com defines a stop loss as “an order placed with a broker to sell a security when it reaches a certain price. It’s designed to limit an investor’s loss on a security position.”
(Standard – Trading Warrants and share Installments 11 article from web)
Glossary - T
Technical analysis
Technical analysis serves to determine “when to buy or when to sell” shares. The technical approach acknowledges that fundamentals are important, but assumes that the known fundamentals have already been discounted and reflects in the current market price of a security. Prices are now reacting to a future time horizon of anticipated changes in all variables that will affect the price and prices will lead the conventional wisdom of the moment. Thus, the technical analyst studies the effect of market movements and is unconcerned with the causes. Technical analysis is concerned with the use of graphs and statistical techniques to study historical price and volume patterns in order to predict the future course of share prices. With technical analysis, timing is the critical success factor.
(WEN Professional, Technical Analysis Software Manual)
Glossary - Z
No terms defined.
