Trading Glossary

Trading Strategies

0DTE (Zero Days to Expiration)

Options that expire the same trading day they are held. Cheap, volatile, and dominated by time decay.

Account & Regulation

401(k)

An employer-sponsored retirement plan where employees defer part of their salary into tax-advantaged investments. Contributions are pre-tax, growth is tax-deferred, and many employers offer a matching contribution.

Account & Regulation

403(b)

A retirement plan for employees of public schools, universities, churches, and certain nonprofits. Similar to a 401(k) in structure and contribution limits, with investments typically in annuities or mutual funds.

Account & Regulation

457(b)

A deferred compensation plan for state and local government employees and some nonprofits. Separate contribution limit from 401(k) and 403(b), and no early withdrawal penalty at separation of service.

Account & Regulation

529 Plan

A state-sponsored, tax-advantaged savings plan for education expenses. Contributions grow tax-free, and withdrawals used for qualified education costs are federally tax-free.

Chart Patterns

ABCD Pattern

A four-point chart pattern (A-B-C-D) where the CD leg mirrors the AB leg, giving a predictable entry at point C.

Technical Indicators

ATR

Average True Range: measures volatility by averaging the true range over a set period (typically 14 days).

Trading Strategies

Accumulation

The phase where large players quietly buy shares over time without significantly moving the price. The chart appears range-bound and boring.

Market Structure

Assignment (Options)

When the seller of an option is forced to fulfill the contract because the buyer exercised. Happens randomly and cannot be refused.

Market Structure

At the Money (ATM)

An option whose strike price is roughly equal to the current stock price. Has the most extrinsic value of any strike.

Risk Management

Average Down

Buying more shares of a stock you already own after the price drops, lowering your average cost per share. Can reduce your break-even price but also increases your exposure to a losing position.

Account & Regulation

Backdoor Roth

A two-step workaround that lets high earners get money into a Roth IRA despite the income limit: contribute non-deductibly to a Traditional IRA, then convert it to a Roth. Pro rata rule is the main trap.

Trading Strategies

Bag Holder

A trader or investor stuck holding shares of a stock that has dropped significantly below their purchase price, often hoping for a recovery that may never come.

Market Structure

Bear Market

A market condition where prices are falling or expected to fall, generally defined as a 20% or greater decline from recent highs.

Trading Strategies

Bear Trap

A false breakdown below support that lures short sellers in before the price reverses sharply upward, trapping the bears in losing positions.

Price & Volume

Bid-Ask Spread

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask).

Market Structure

Blue Chip

A large, well-established, financially stable company with a long track record. Examples include Apple, Microsoft, and Johnson & Johnson.

Technical Indicators

Bollinger Bands

A volatility indicator with a middle SMA band and upper/lower bands set at 2 standard deviations.

Market Structure

Bond

A debt instrument where you lend money to a government or company in exchange for regular interest payments and the return of your principal at maturity.

Order Types

Bracket Order

An order that automatically sets both a stop loss and a profit target when your entry fills. One cancels the other when either is hit.

Chart Patterns

Breakout

When price moves above resistance or below support with increased volume, signaling a potential new trend.

Account & Regulation

Brokerage Account

A standard taxable investment account that holds stocks, ETFs, mutual funds, bonds, and other securities. No contribution limits or withdrawal restrictions, but gains, dividends, and interest are taxed each year.

Chart Patterns

Bull Flag / Bear Flag

A continuation pattern where price consolidates in a tight channel (the flag) after a strong move (the pole).

Market Structure

Bull Market

A market condition where prices are rising or expected to rise, generally defined as a 20% or greater increase from recent lows.

Chart Patterns

Bull Trap

A false breakout above resistance that lures buyers in, then quickly reverses below the breakout level, trapping longs in a losing position.

Account & Regulation

Buying Power

The total dollar amount available to purchase securities in your account. Includes your cash balance plus any margin your broker extends to you.

Market Structure

Call Option

A contract that gives the buyer the right to buy 100 shares of a stock at a set price before a set date. Bought to bet on the stock rising.

Price & Volume

Candlestick

A chart element showing open, high, low, and close prices for a time period. The body shows open-to-close range.

Account & Regulation

Capital Gains Tax

Tax owed on profits from selling investments. Short-term gains (held under 1 year) are taxed as ordinary income. Long-term gains (held over 1 year) get lower rates.

Account & Regulation

Cash Account

A brokerage account where all trades must be paid for in full with settled cash. No margin, no shorting, and rapid round-trips can trigger settlement violations.

Trading Strategies

Cash-Secured Put

Selling a put while holding cash to buy 100 shares at the strike if assigned. A way to collect premium or get paid to wait for a lower entry.

Market Structure

Catalyst

An event or news that triggers a significant price move: earnings, FDA approvals, analyst upgrades, etc.

Account & Regulation

Certificate of Deposit

A time deposit at a bank or credit union that pays a fixed interest rate for a set term. FDIC-insured up to the standard limit and lower risk than most investments, but with early withdrawal penalties.

Chart Patterns

Channel

Two parallel trendlines containing price movement. An ascending channel trends up, a descending channel trends down, and a horizontal channel is a range.

Market Structure

Chop

Choppy, directionless price action where a stock trades sideways in a tight range with no clear trend, repeatedly triggering stop losses on both sides.

Account & Regulation

Circuit Breaker

An automatic trading halt triggered when the S&P 500 drops by 7%, 13%, or 20% in a single day. Designed to prevent panic selling.

Risk Management

Confirmation Bias

The tendency to seek out information that supports your existing trade idea while ignoring evidence that contradicts it.

Chart Patterns

Consolidation

A period where price trades in a tight range, indicating a pause before the next directional move.

Trading Strategies

Covered Call

An options strategy where you own 100 shares of a stock and sell a call option against it, collecting premium income in exchange for capping your upside.

Chart Patterns

Cup and Handle

A bullish continuation pattern that looks like a tea cup. A rounded bottom (cup) followed by a small pullback (handle) before breaking out to new highs.

Market Structure

Dark Pool

A private trading venue where institutional investors execute large block orders without displaying them on the public order book.

Trading Strategies

Dead Cat Bounce

A temporary recovery in a stock that's been falling sharply: the bounce is short-lived and selling resumes.

Trading Strategies

Diamond Hands / Paper Hands

Slang from retail trading communities. Diamond hands means holding through volatility. Paper hands means selling at the first sign of a loss.

Trading Strategies

Distribution

The phase where large players quietly sell shares at high prices into buying demand. The opposite of accumulation.

Technical Indicators

Divergence

When price and a momentum indicator (like RSI or MACD) move in opposite directions, suggesting the current trend may be weakening.

Market Structure

Dividend

A payment a company makes to shareholders from its profits, usually quarterly. Not all stocks pay dividends.

Chart Patterns

Doji

A candlestick where open and close are nearly equal, signaling indecision between buyers and sellers.

Risk Management

Dollar Cost Averaging (DCA)

Investing a fixed dollar amount at regular intervals regardless of price. Reduces the impact of volatility by buying more shares when prices are low and fewer when prices are high.

Chart Patterns

Double Top / Double Bottom

A reversal pattern where price tests the same level twice and fails both times. Double top signals a bearish reversal, double bottom signals a bullish reversal.

Market Structure

Dow Jones Industrial Average

An index of 30 large blue-chip US companies. The oldest and most widely quoted market index, though many traders consider the S&P 500 more representative.

Technical Indicators

EMA

Exponential Moving Average: a moving average that weights recent prices more heavily, reacting faster to price changes.

Market Structure

ETF (Exchange-Traded Fund)

A fund that trades on an exchange like a stock, holding a basket of assets such as stocks, bonds, or commodities. SPY and QQQ are ETFs.

Market Structure

Earnings Report

A quarterly financial report that publicly traded companies must file, showing revenue, profit, and guidance. The single biggest catalyst for stock price moves.

Chart Patterns

Engulfing Pattern

A two-candle reversal pattern where the second candle's body completely engulfs the first candle's body.

Market Structure

Exercise (Options)

Using the right granted by an option contract to buy (call) or sell (put) the underlying stock at the strike price.

Market Structure

Expiration Date (Options)

The last day an option contract is valid. After this date, unexercised options expire worthless.

Market Structure

Extrinsic Value (Time Value)

The portion of an option's price that is not intrinsic value. Decays to zero at expiration and is driven by time and implied volatility.

Trading Strategies

FOMO

Fear of missing out. The emotional impulse to chase a stock that is already running because you are afraid of missing the move, often leading to buying at or near the top.

Chart Patterns

Fair Value Gap (FVG)

A three-candle pattern where the wicks of candles 1 and 3 don't overlap, leaving an imbalance zone price often returns to fill.

Technical Indicators

Fibonacci Retracement

Horizontal levels at key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%) that identify potential support and resistance.

Order Types

Fill

When your order is executed: 'getting filled' means your buy or sell order has been completed.

Price & Volume

Float

The number of shares available for public trading, excluding restricted and insider-held shares.

Market Structure

Free Cash Flow

The cash a company generates after accounting for capital expenditures. The money actually available to pay dividends, buy back stock, or reinvest.

Market Structure

Gamma Squeeze

A rapid price increase caused by market makers buying the underlying stock to hedge their exposure from sold call options as the stock price rises.

Chart Patterns

Gap

When a stock opens significantly higher or lower than its previous close, creating a 'gap' on the chart.

Trading Strategies

Gap and Go

A day trading strategy that buys stocks gapping up on news/earnings in pre-market and rides the momentum at the open.

Account & Regulation

Good Faith Violation

A violation in a cash account when you buy a stock with unsettled funds and sell it before those funds settle. Three violations in 12 months can restrict your account.

Market Structure

Guidance

A company's forward-looking forecast of future revenue and earnings, provided during earnings reports. Often moves the stock more than the actual quarterly numbers.

Account & Regulation

HSA

A Health Savings Account: a triple-tax-advantaged account for medical expenses. Contributions are deductible, growth is tax-free, and qualified medical withdrawals are tax-free. Often used as a stealth retirement account.

Chart Patterns

Hammer / Shooting Star

Single-candle reversal patterns: a hammer signals bullish reversal at lows, a shooting star signals bearish reversal at highs.

Chart Patterns

Head and Shoulders

A bearish reversal pattern with three peaks: a higher middle peak (head) between two lower peaks (shoulders). Confirmed when price breaks the neckline.

Order Types

Hot Keys

Keyboard shortcuts for instant order execution: essential for day traders who need speed.

Market Structure

IPO (Initial Public Offering)

The first time a private company sells shares to the public on a stock exchange. Also called "going public."

Technical Indicators

IV Crush

A sharp drop in implied volatility that can cause an option to lose value even when the stock moves in your direction.

Technical Indicators

Implied Volatility (IV)

A measure of how much the market expects a stock to move, derived from options prices. High IV means the market expects a big move. IV crushes after the event.

Market Structure

In the Money (ITM)

An option with real value right now. A call is ITM when the stock is above the strike; a put is ITM when the stock is below.

Market Structure

Index

A measurement of a section of the stock market. The S&P 500, Nasdaq Composite, and Dow Jones are the three most watched indexes.

Account & Regulation

Index Fund

A mutual fund or ETF designed to track a specific market index, such as the S&P 500. Low fees, broad diversification, and historically better long-term returns than most actively managed funds.

Market Structure

Institutional Trader

A professional trader employed by a firm to trade large positions on behalf of clients or the firm itself.

Market Structure

Intrinsic Value (Options)

The portion of an option's price that comes from the stock already being past the strike. Zero for out-of-the-money options.

Price & Volume

Level 2 / Order Book

A real-time display of all pending buy and sell orders at every price level, showing market depth.

Order Types

Limit Order

An order to buy or sell at a specific price or better. Only executes at the limit price or more favorable.

Market Structure

Liquidity

How easily a stock can be bought or sold without significantly affecting its price.

Market Structure

Liquidity Sweep

A quick price move that takes out resting orders at a key level before reversing. Functionally the same as a stop hunt, viewed from the perspective of the liquidity being taken.

Trading Strategies

Long Position

Buying a stock with the expectation that its price will rise. "Going long" means you profit when the stock goes up.

Technical Indicators

MACD

Moving Average Convergence Divergence: a trend-following momentum indicator showing the relationship between two EMAs.

Account & Regulation

Margin

Borrowed money from your broker to trade larger positions. Amplifies both gains and losses.

Account & Regulation

Margin Account

A brokerage account that allows borrowing against existing securities to buy more. Amplifies gains and losses, enables short selling, and incurs interest on the borrowed balance.

Account & Regulation

Margin Call

A demand from your broker to deposit more money or sell positions because your account value has dropped below the required maintenance level.

Market Structure

Market Hours

The US stock market is open 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. Pre-market starts at 4:00 AM, after-hours ends at 8:00 PM.

Market Structure

Market Maker

A firm or individual that continuously quotes both a buy and sell price for a security, providing liquidity so other traders can execute orders quickly.

Order Types

Market Order

An order to buy or sell immediately at the best available price. Guarantees execution but not price. Large market orders can push the stock price up or down as they fill.

Chart Patterns

Market Structure

The pattern of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend) on a chart.

Risk Management

Max Drawdown

The largest peak-to-trough decline in account value. Measures the worst-case loss experienced.

Trading Strategies

Mean Reversion

The theory that price tends to return to its average over time: trading extreme moves back toward the mean.

Market Structure

Meme Stock

A stock that gains massive attention and trading volume driven by social media hype rather than traditional fundamentals. GameStop and AMC are the most famous examples.

Market Structure

Midday Lull

The low-volume, low-volatility period between roughly 11:00 AM and 2:00 PM ET when trading activity drops off and stocks tend to drift sideways.

Trading Strategies

Momentum Trading

A strategy that buys stocks making strong moves on high volume, riding the trend until momentum fades.

Account & Regulation

Money Market Fund

A type of mutual fund that invests in short-term, low-risk debt like Treasury bills and commercial paper. Used as a cash-equivalent place to park money with a higher yield than a typical bank account.

Technical Indicators

Moving Average

A smoothed line that averages price over a set number of periods, used to identify trend direction.

Market Structure

Mutual Fund

A pooled investment fund managed by a professional that buys a portfolio of stocks, bonds, or other assets. Investors buy shares of the fund, not the individual holdings.

Market Structure

NASDAQ

The second largest stock exchange in the world, fully electronic with no physical trading floor. Known as the home of technology stocks.

Market Structure

NYSE (New York Stock Exchange)

The largest stock exchange in the world by market capitalization, home to many blue-chip companies like Apple, JPMorgan, and Walmart.

Market Structure

OTC Markets

A decentralized network where stocks trade directly between buyers and sellers through broker-dealers, outside of major exchanges like NYSE and NASDAQ.

Market Structure

Opening Drive

The first 30-60 minutes after the market opens (9:30-10:00 or 10:00 AM ET), characterized by the highest volume and volatility of the day as overnight orders, gap reactions, and early momentum trades execute.

Trading Strategies

Opening Range Breakout (ORB)

A day trading strategy that marks the high and low of the first 15 or 30 minutes after market open, then trades the breakout in whichever direction price moves outside that range.

Market Structure

Option Premium

The price paid for an option contract, quoted per share. Multiply by 100 for the total cost per contract. For buyers, it is the maximum possible loss.

Market Structure

Options

Contracts that give the buyer the right, but not the obligation, to buy or sell a stock at a specific price before a specific date.

Market Structure

Options Break-Even

The stock price at which an option trade starts being profitable. Call break-even is strike plus premium. Put break-even is strike minus premium.

Chart Patterns

Order Block

The last opposing candle before a strong move: an area where institutional orders were placed.

Market Structure

Out of the Money (OTM)

An option with no intrinsic value. Its price comes entirely from time value and the chance the stock moves before expiration.

Risk Management

Overtrading

Taking too many trades, often driven by boredom, frustration, or the urge to make back losses. The number one account killer for new traders.

Account & Regulation

PDT Rule

FINRA's former Pattern Day Trader rule required a $25,000 minimum for active day trading. Overhauled April 2026: the $25K floor is gone, replaced by a $2,000 margin minimum and real-time intraday margin.

Trading Strategies

Paper Trading

Simulated trading with fake money to practice strategies without financial risk.

Market Structure

Payment for Order Flow (PFOF)

The practice where brokers send customer orders to market makers in exchange for payment. This is how zero-commission brokers make money.

Market Structure

Penny Stock

A stock trading below $5 per share, typically from a small company with limited financial history. High risk, high volatility, and often subject to manipulation.

Market Structure

Pink Sheets

The broadest tier of OTC Markets with minimal disclosure requirements, named after the pink paper quotes were originally printed on.

Market Structure

Portfolio

The collection of all investments (stocks, ETFs, options, cash) held in your trading or brokerage account.

Risk Management

Position Sizing

Determining how many shares to buy based on your account size, risk tolerance, and stop loss distance.

Market Structure

Power Hour

The last hour of the regular trading session (3:00-4:00 PM ET), known for increased volume, volatility, and decisive price moves as institutional traders and algorithms execute end-of-day orders.

Market Structure

Pre-Market / After-Hours

Extended trading sessions before (4-9:30 AM ET) and after (4-8 PM ET) regular market hours.

Risk Management

Profit Factor

Total gross profits divided by total gross losses. Above 1.0 is profitable, above 2.0 is excellent.

Chart Patterns

Pullback

A temporary price decline within an ongoing uptrend. The stock dips but the overall trend remains intact. The opposite of a bounce in a downtrend.

Market Structure

Put Option

A contract that gives the buyer the right to sell 100 shares at a set price before a set date. Bought to bet on a drop or hedge a long position.

Market Structure

QQQ

The Invesco QQQ ETF, tracking the 100 largest non-financial companies on the Nasdaq. Heavily weighted toward tech giants like Apple, Microsoft, Nvidia, and Amazon.

Risk Management

R-Multiple

A trade's profit or loss expressed as a multiple of the initial risk (R). A 3R trade made 3x what was risked.

Account & Regulation

REIT

A Real Estate Investment Trust: a company that owns income-producing real estate and trades like a stock. Required to pay out at least 90% of taxable income as dividends, which makes REITs popular for income investors.

Technical Indicators

RSI

Relative Strength Index: a momentum oscillator (0-100) measuring speed and magnitude of price changes.

Technical Indicators

Relative Volume (RVOL)

Current volume compared to the average volume for the same time of day. RVOL > 2 signals unusual activity.

Price & Volume

Relative Volume (RVOL)

A ratio comparing the current trading volume to the average volume over a lookback period, typically 10 or 20 days. An RVOL of 2.0 means twice the normal volume.

Market Structure

Retail Trader

An individual trading their own money through a personal brokerage account, typically with smaller position sizes than institutions.

Risk Management

Revenge Trading

Emotionally-driven trading to recover losses, typically with larger size and less discipline: almost always makes things worse.

Market Structure

Revenue

The total money a company brings in from sales before subtracting any costs. Also called the "top line" because it is the first line on the income statement.

Chart Patterns

Reversal

A change in the overall direction of a stock price. An uptrend reversing into a downtrend, or a downtrend reversing into an uptrend.

Risk Management

Risk/Reward Ratio

The ratio of potential loss to potential gain on a trade. A 1:3 ratio means risking $1 to potentially make $3.

Account & Regulation

Roth 401(k)

A 401(k) variant funded with after-tax dollars. Investments grow tax-free and qualified withdrawals in retirement are tax-free, combining the high contribution limits of a 401(k) with the Roth tax treatment.

Account & Regulation

Roth IRA

A retirement account funded with after-tax dollars. Investments grow tax-free, and qualified withdrawals in retirement are completely tax-free, including all earnings.

Trading Strategies

Round Trip

A complete trade cycle: opening a position and then closing it. Counted as one round trip regardless of share count.

Market Structure

Russell 2000

An index of 2,000 small-cap US companies, widely used as the benchmark for small-cap stock performance. Watched as a risk appetite gauge since small caps tend to outperform when the economy is strong and lag when it weakens.

Market Structure

S&P 500

An index of the 500 largest publicly traded US companies, weighted by market cap. The most widely used benchmark for overall US stock market performance.

Account & Regulation

SEC Form 4

An SEC filing required when a corporate insider (officer, director, or 10%+ shareholder) buys or sells company stock, due within 2 business days of the transaction.

Account & Regulation

SEP IRA

A retirement account for self-employed individuals and small business owners. Much higher contribution limits than a standard IRA, and contributions are tax-deductible.

Account & Regulation

SIMPLE IRA

A retirement plan for small businesses with 100 or fewer employees. Lower contribution limits than a 401(k) but much simpler to run, with mandatory employer contributions.

Market Structure

SPY

The SPDR S&P 500 ETF. The most traded security in the world, tracking the 500 largest US companies. When traders say "the market," they usually mean SPY.

Account & Regulation

SSR (Short Sale Restriction)

A rule that prevents short sellers from shorting on a downtick after a stock drops 10% or more from the prior close. Stays in effect for the rest of the day and the following day.

Account & Regulation

STOCK Act

The Stop Trading on Congressional Knowledge Act of 2012, which requires members of Congress to disclose stock trades within 45 days and prohibits them from trading on non-public information.

Trading Strategies

Scalping

A strategy of making many small trades for tiny profits, holding positions for seconds to minutes.

Market Structure

Sector Rotation

When money flows from one market sector to another as economic conditions change or investors shift risk appetite.

Market Structure

Security

A tradable financial instrument such as a stock, bond, option, or ETF. When traders say "securities," they usually mean stocks.

Trading Strategies

Shakeout

A sharp price drop designed to scare weak holders into selling before the stock reverses and moves higher. Also called a spring in Wyckoff terminology.

Trading Strategies

Short Selling

Selling borrowed shares to profit from a price decline. Buy them back cheaper to close the trade.

Market Structure

Short Squeeze

A rapid price spike caused by short sellers being forced to buy back shares, creating a feedback loop of buying pressure.

Order Types

Slippage

The difference between the expected price and the actual fill price, usually caused by fast-moving markets or low liquidity.

Market Structure

Small Cap / Mid Cap / Large Cap

Size classifications for companies based on total market value. Small cap is under $2 billion, mid cap is $2-10 billion, large cap is over $10 billion.

Account & Regulation

Solo 401(k)

A 401(k) plan for self-employed individuals with no employees (other than a spouse). Combines employee salary deferrals with employer profit-sharing for very high contribution limits.

Market Structure

Stop Hunt

A price move that briefly pushes through a key level to trigger clustered stop loss orders, then reverses. Also called a liquidity sweep.

Order Types

Stop Limit Order

A two-part order that triggers a limit order when a specified stop price is reached. Gives you price control but does not guarantee execution.

Order Types

Stop Loss

An order to sell a position when it reaches a specified price, limiting potential losses.

Market Structure

Strike Price

The fixed price at which an option contract lets you buy (call) or sell (put) the underlying stock.

Chart Patterns

Supply and Demand Zones

Price areas where imbalances between buyers and sellers caused sharp moves: stronger than traditional support/resistance.

Chart Patterns

Support and Resistance

Price levels where buying (support) or selling (resistance) pressure historically prevents further movement.

Trading Strategies

Swing Trading

A strategy of holding positions for days to weeks, capturing medium-term price swings.

Account & Regulation

T+1 Settlement

The rule that stock trades settle one business day after execution. You sold shares today, the cash is officially yours tomorrow.

Market Structure

TXSE (Texas Stock Exchange)

A new national securities exchange headquartered in Dallas, Texas, backed by BlackRock and Citadel Securities, positioning itself as an alternative to NYSE and NASDAQ.

Account & Regulation

Tax Bracket

The range of income taxed at a particular rate. The US uses progressive brackets where higher portions of income are taxed at higher rates.

Technical Indicators

The Greeks (Options)

A set of risk metrics for options: Delta (direction), Gamma (acceleration), Theta (time decay), and Vega (volatility sensitivity).

Technical Indicators

Theta (Time Decay)

The amount an option loses in value each day from time passing. Accelerates as expiration approaches.

Risk Management

Tilt

An emotional state where frustration or anger from recent losses leads to impulsive, irrational trading decisions. Borrowed from poker terminology.

Price & Volume

Time and Sales (Tape)

A real-time feed of every executed trade showing price, size, and time: the 'tape' that tape readers watch.

Risk Management

Trading Plan

A written set of rules that define when you enter, exit, and manage a trade. Removes emotion from decision-making by pre-defining your actions.

Account & Regulation

Traditional IRA

A tax-deferred retirement account where contributions may be tax-deductible, investments grow tax-free until withdrawal, and distributions in retirement are taxed as ordinary income.

Order Types

Trailing Stop

A stop that automatically adjusts upward as price rises, locking in profits while allowing the trade to run.

Market Structure

Treasury

A debt security issued by the US federal government. Treasuries are considered the safest investment and their yields heavily influence the stock market.

Technical Indicators

Trend

The general direction a stock price is moving over time. An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows.

Account & Regulation

UGMA / UTMA

Custodial brokerage accounts that let an adult hold investments for a minor. Assets legally belong to the child and transfer to them at the age of majority.

Risk Management

Unrealized vs Realized P&L

Unrealized P&L is the profit or loss on positions you still hold. Realized P&L is from positions you have closed. You only get taxed on realized gains.

Price & Volume

VWAP

Volume Weighted Average Price: the average price weighted by volume throughout the trading day.

Price & Volume

Volume

The total number of shares traded during a given period. High volume confirms price moves.

Technical Indicators

Volume Profile

A chart study showing volume traded at each price level, revealing where the most activity occurred.

Account & Regulation

Wash Sale Rule

IRS rule that disallows a tax loss deduction if you buy a substantially identical security within 30 days.

Trading Strategies

Watchlist

A curated list of stocks you are monitoring for potential trades. Built from scans, news, and research, typically updated daily.

Chart Patterns

Wedge

A chart pattern where price converges between two sloping trendlines. Rising wedges are bearish, falling wedges are bullish.

Market Structure

Whale

A trader or institution with enough capital to move the market with a single order. Their buying or selling creates visible price and volume spikes.

Risk Management

Win Rate

The percentage of trades that are profitable. A 45% win rate means 45 out of 100 trades are winners.

Trading Strategies

Wyckoff Method

A framework for understanding how large players accumulate and distribute shares through predictable market cycles. Developed by Richard Wyckoff in the 1930s.

Market Structure

Yield

The income return on an investment, expressed as a percentage. For stocks, this usually means dividend yield.