Important Stock Market Terms To Know

Weekly Money Multiplier
Aug 8 · 2 min read

Anyone considering a foray into the world of stock trading should be fully up to speed on all of the important stock market terms and definitions. The stock industry is a place where traders have to know the different terms and definitions in order to execute a transaction properly. Without adequate knowledge on the terminology, a trader could end up executing an incorrect transaction type, causing them to incur huge financial losses as a result. Thankfully, most of the core terms are very easy to understand and conceptualize. A trader really does not need to possess advanced terminology-based knowledge in order to begin trading on most platforms at the novice level.

Top 5 Important Stock Market Terms

  1. Bear Market — This frequently used term in the world of stock trading refers to downward trending market conditions. A bear market could refer to a downward trending individual stock, a stock index, or the whole stock market.
  2. Short Selling — Most people are familiar with the simple concept of buying stocks to earn a future return. There is a second way to make money trading stocks called short selling. Short selling is the process of borrowing shares from someone else at a set price in order to earn a return on a stock that drops in value.
  3. Bull Market — This is another frequently used term that stock traders constantly throw around. It refers to upward trending market conditions. An individual stock could be referred to as a bull market stock if it has been performing well, or the stock market as a whole could be referred to as a bull market.
  4. Day Trading — This widely used term refers to the practice of buying and selling a high volume of stock during the course of a single trading session. Day traders typically aim to earn a daily profit off a day’s worth of trading, rather than earning from a longer-term strategy.
  5. Index — Any time the term index is used in reference to the stock market, it refers to a measurement of any given portion of the stock market. It generally reflects an average price of a certain number of selected stocks, typically stocks that are well known or frequently traded. It is used to gauge the overall health of the stock market.

Originally posted on WeeklyMoneyMultiplier.info.

Weekly Money Multiplier

Written by

Weekly Money Multiplier is an options trading program with Jeff Bishop, offered through RagingBull.com Trading: weeklymoneymultiplier.info

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade