4. KNOW WHAT YOU'RE TALKING ABOUT
Just like any other business, the stock market has its own vocabulary that you will have to become familiar with if you are going to understand what is going on.
All or none give this order to your broker when you buy or sell stocks to make sure that the order is completely filled or not at all.
Ask the current price that a stock is offered for sale.
At the close the price of a stock at the close of the market.
At the open the price of a stock at the market's open.
Bear Market a long period of time when stock prices are generally in decline.
Bull Market a long period of time when stock prices are generally increasing.
Bull Trap when it seems like stock prices are on an upward slope but it proves to be false.
Consumer Price Index (CPI) economic indicator put out by the U.S. Department of Labor that measures the prices of consumer goods and services.
Day high highest price a security traded at on a particular day.
Day low lowest price a security traded at on a particular day.
Insiders people with inside information about a company that is traded on the stock market.
Insider trading trading of a company's shares by its directors and advisors. Insider trading must be public knowledge.
Momentum the strength behind a stock's upward or downward movement.
Overbought when a stock's price rises too quickly.
Oversold when a stock's price falls too quickly
Volume number of shares that are traded of a stock on a daily basis.
These are just a few of the terms you will need to know if you want to make money in the stock market. You probably won't need to know every stock market term, but having a general idea of what is being discussed will help you keep the shirt on your back.
