Stock Trading Terms: Financial Education Is Your Best Investment

Investing Strategies & Market Analysis for Options, Futures, Forex & Day Trading

By: Thomas Herold

Narrated by: William Bahl

Length: 11 hrs and 22 mins

Publisher's Summary

Essential stock trading terms you should know.

Whether you're a new investor or a seasoned pro, it helps to have a solid glossary at your fingertips to provide quick clarification on a particular term or to expand your overall stock market vocabulary.

Understanding the stock market can be a daunting task for any new investor. Not only are there many concepts and technical terms to figure out, but nearly everybody is trying to give you advice.

This practical glossary audiobook compiles a list of 150 most common stock trading terms you’re likely to encounter. Every stock trading term is explained in detail, with clear and concise article style description and practical examples.

This practical stock trading guide helps you understand:

• Day Trading
• Fibonacci & Swing Trading
• Forex Trading
• Options Trading
• Commodity Trading
• Crypto Trading
• Futures Trading

To fully get to grips with learning the stock market, you first need to understand all the different terminology that is often used. Use this practical stock market terminology guide with its alphabetical index. Consult for stock trading terms and lingo that will help you understand the markets better. 

Make stock trading less of a mystery.

Deep knowledge of stock trading will greatly reduce the possibilities of losing money. That’s why it helps a lot to have the stock market terms in the back of your mind, and understand various trading strategies, before taking the plunge.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.

©2019 Thomas Herold (P)2019 Thomas Herold

See the possibilities

Wall Street is a physical street that is seven blocks long and runs from Broadway to the New York East River. It lies to the south of the Manhattan borough of New York City. The street is incredibly significant because it has played host to a number of the most important financial entities in the United States.

The city originally got its name because of an earthen built wall that Dutch Settlers of the city erected in 1653 to ward off an anticipated invasion of the English. The street’s importance grew so rapidly that before the Civil War in America this was already known as the nation’s sole financial capital. In the district of Wall Street there are many important buildings and headquarters.

The street contains the Federal Reserve Bank, the New York Stock Exchange, the International Commodity, Cocoa, Sugar, Coffee, and Cotton Exchanges, and the NYSE Amex Equities. There are also numerous municipal and government bond dealers, investment banks, trust companies, and insurance and utilities’ headquarters located here. A great number of the major American brokerage firms have their headquarters in this financial district.

Because of Wall Street, New York City is sometimes called the most important financial center in the world as well as the greatest and most powerful city economically. Investors find the two biggest stock exchanges in the world as measured by market capitalization here in the NASDAQ and the New York Stock Exchange. A few other significant exchanges also make or made their headquarters here. These are the New York Board of Trade, The New York Mercantile Exchange, and the one time American Stock Exchange.

Amazing For Trading career

Bitcoin is the name of a new electronic currency. An unknown individual who called himself Satoshi Nakamoto created this currency in 2009. This world’s first widespread virtual currency appeals to many individuals because there are no banks or governments involved in issuing, trading, spending, or processing the transactions. There are also no transaction fees involved. Owners do not have to provide their actual identity to use them.

Bitcoin users like that they are able to purchase goods and services completely anonymously. They also enjoy the inexpensive and simple to use international payment system. This exists because this currency is not heavily regulated nor tied to any single bank or nation. Small businesses tend to like Bitcoin since they do not have to pay any credit card usage fees.

There are several ways to obtain these Bitcoins. Users buy them on open marketplaces known as Bitcoin exchanges. Those who wish to have them can buy and sell it with a variety of different currencies. Mt. Gox was the largest Bitcoin marketplace until it spectacularly collapsed and went bankrupt. Many clients who held their Bitcoins at Mt. Gox lost most of their money there at the time.

Invaluable resource!

Swing trading refers to a wide range of shorter time frame trading strategies used in the stock market. Once a purview of only wealthy or professional full time traders this form of trading has become far more broad-based and accessible to regular investors. This is thanks to the vast proliferation over the past few years of the Internet revolution, an explosion in information and charting capabilities, and a range of affordable, efficient and fast online trading platforms. Those who practice swing trading try to realize gains in a financial instrument such as stocks by holding them for from only overnight to even several weeks. The majority of swing traders will employ a technical analysis to consider various stocks that might offer shorter term momentum in price. It is possible that such traders will also use intrinsic fundamental analysis of the stocks alongside their analysis of patterns and trends in the price. Because swing trading requires speed and availability to execute these types of trades, the majority of those traders or investors who utilize it are day traders or those who work from home. The institutional traders work with enormous sizes which prohibit them from quietly entering and exiting stock trades. It is the individual lone-wolf trader who can take advantage of these shorter-term movements in the prices of stocks. They have the advantage of not having to go head to head against the large investors of the trading business.

Master your trading

Great thought process and execution on the author's behalf.

Shareholder Value refers to the value of a company which stakeholders in the firm enjoy as a direct result of management growing revenues, earnings, and free flow cash in time. The actual value of any company comes down to the effects and results of the strategic choices that senior management makes and carries out for a firm. This includes both strong returns on their invested capital positions as well as making solid investments. As value is built up over the longer term time frame, the price of the shares goes up and the company is able to pay out bigger cash dividends to its various stake holders. Unfortunately, the opposite is also true; share prices can fall while dividends can sometimes be cut out of dire necessity. Rising dividends is usually the sign of a healthy and growing company, while falling dividends are a sign of a weakening and sick firm. The balance sheet of a given company will reflect a higher and growing shareholder value. This is tallied in the equity section on the corporate balance sheet. The formula for this balance sheet is stockholder’s equity equates to the company assets minus the corporate liabilities. Stakeholder equity also includes retained earnings. These are the company’s sum of all net income minus the cash dividends from the inception of the firm.

The Book Pay for Itself

Asset allocation involves diversifying an investor portfolio into a variety of different assets based on the appropriate level of risk. This procedure has investors divide up their investments between varying types of assets. Among these might be stocks, real estate, bonds, and cash. The goal is to maximize the reward and risk balance using the investors’ own goals and scenarios. This has become one of the critical ideas behind money management and financial planning today. There are several different types of asset allocation to consider. These are strategic, tactical, and dynamic. In strategic asset allocation, the investor sets out target allocations for the desired different classes of assets. When the percentage balance deviates from the original set levels, it will involve the investor rebalancing the overall portfolio. The allocations will be reset to the original ones as they change significantly because of different returns that each class earns. Strategic asset allocation sets these initial allocations up using a number of different considerations. Among these are the investor objectives, the intended time frame of investing, and the risk tolerance. These allocations can be changed in time as the different variables alter.

Honest, Helpful, Straight to the point

Binary Options are a fairly new means of trading on the financial markets in the United States. They became a legal vehicle within the U.S. only back in 2008. Since then, they have rapidly evolved into what is now one of the quickest and simplest means of trading. These options are different from most other forms of trading since participants do not assume ownership of anything. Instead, they are simply trying to forecast the price direction of the asset that underlies the binary trade. The most basic form of such binary options involves only two directions to potentially correctly predict. Will the underlying security go up or down is the only question traders must attempt to answer in this scenario. These are “all or nothing” trades without any confusing grey area in the middle. It makes them far easier to understand. Once traders arrive at their final conclusion on the price direction, they can punch in the security and see the percentage return on that given scenario if they are right before actually committing to the trade. It means traders know exactly how much time they have for the trade to work, what the maximum profit point is, and the maximum (total invested) loss amount could be. The simplicity of this idea appeals to countless traders. Binary options permit trading on any of the significant cross currency pairs, stock market indices, many individual stocks, and commodities like gold and silver. This means that all of these various instruments, ranging from the British Pound Sterling currency versus the U.S. Dollar, to Apple stock, to gold futures can all be speculated on from a single unified and cohesive platform. It eliminates the need to switch back and forth between laptops or computer screens while trading internationally without having to switch from one broker to the next. This is especially true since a great number of the top binary options brokers have a wide range of stock market indices and individual stocks from the U.S., Europe, and Asia. This permits international traders to utilize their platforms without difficulties or hindrances. It makes these brokers a one-stop shop for binary options trades

Very useful for algorithmic traders

Algorithmic trading has many names. Users also know it as black box trading and algo trading. This system of trading works with complicated and highly advanced mathematical formulas. It takes these models and engages in rapid decisions to execute transactions in various financial markets. This type of trading is only possible with super fast computers and programs. It combines these with the algorithms to come up with trading strategies that deliver the maximum returns.
There a variety of trading and investment strategies that can benefit from algorithmic trading. Some of these are inter-market spreads, speculation, market making, and arbitrage. Nowadays this style of trading is able to operate and automate trading and investment strategies by working on electronic platforms. This means that the programs themselves can carryout specific trading instructions. They can be set up to consider special scenarios like volume, price, and timing.
Bigger institutional investors who buy enormous amounts of shares are most likely to use algorithmic trading. These programs help them to gain the optimal price in the market without substantially impacting the price of the stock or making their buying costs higher.
Among the most popular types of algorithmic trading strategies are trading in advance of index fund re-balancing, scalping, arbitrage, and mean reversion. These are complex strategies that mostly require speed of discovery and instantaneous decision making to be effective.

EXCELLENT BOOK....

Very well written. Easy to understand. Simple yet complex. I would highly recommend this book...

I wish it wasn't in alphabetical order

Good if you have no knowledge of the finance world. It explains many terms with plenty of examples. I wish it was not in alphabetical order because one definition often refers to another word defined later, so to really grasp it you should listen to the whole audiobook twice. overall a good book

Solid Foundation

Simple and to the point, I’ve been trading for a little over a year and I definitely agree with everything the author discusses. I’ve previously implemented some of the strategies but I also learned a lot from his book - highly recommend!

How you can get information, then apply it

I have been with brokers for a while and taken quite a few losses and decided I needed to learn some inside information for myself I find Herold explanations and Ideas to be very Pertinent If you do your homework and follow some of the strategies he mentions, I feel very confident there is everything to gain from his advice

No problems

I see some reviews less than five stars, honestly thought it's one of many of his books you must read. But definitely not the only one. Read them all.

Confession of a progressing trader

Book is written in simple words and can be comprehend easily. It is very informative yet it's not either too long or boring

Pleasure to read.

Good book for newbies. Guides you all the different ways of making money in the market,complete with all the pluses and minuses.

Dated but worthwhile

This book contains a vast amount of knowledge, in a minimal amount of words. Great read. Highly recommend it.

Spot on!

The instructor does a great job and breaking down the concepts in a meaningful way to help you understand the content. The examples that he uses on his lectures are great for assisting applying the concepts to real world situations, and then to have those examples applied to real world situations is amazing. Overall I feel that my money in this course was very well spent!

Enjoyable, informative, and useful information.

Clear. Straight to the point. The teacher is absolutely great. A very good class in order to get your foot in the door of stock exchange.
Direct, no nonsense, easy to digest in plain english!
Thanks Thomas!

Loaded with helpful information and tips.

Excellent, don't thing much about this course guys its best and as faculty Mr.Thomas is genius many new things i have learnt about stock trading from this course.

Trading is Simple, but not easy.

Lots of topics are covered . However for in depth understanding one needs to research the topics himself. Simply direct to the point and i have bought many of the courses but this gives me a clear undersatanding about markets. So i would highly recomend this course..

Glad! I chose it.

Just finished the course. It was my very first one on the topic and I'm very glad I chose it. The course is well structured and the topics very well explained. What an amazing teacher !!