In the stock trading world, a lot refers to the standardized number of units of a stock or security being traded. An odd lot is when a trader buys or sells shares in increments less than a hundred. Often, the actual value of a stock or security means that buying or selling just a […]
Day Trading Terminology
Why I Don’t Short Stocks – Ross Cameron
What’s up, everyone? All right. Well, I wanted to make a little video for you guys, but I have a headache, so I’m going to do it mostly lying down. So bear with me. The topic is long versus short. And this is one that it’s a really interesting topic. There’s a lot […]
How to Use the Negative Volume Index (NVI) Indicator
In the stock market, trading volume refers to the number of shares/contracts of a stock that have changed hands over a given period of time. Volume plays a critical role in technical analysis and is recognized as an indispensable indicator that helps confirm trends and patterns. If the price of a stock with a […]
Year Over Year (YOY): What it is and How it Works
The year over year calculation is a great way to compare how a company is performing on an annualized basis. What is Year Over Year (YOY) Year over- year (YOY) is a method that is often used when making financial comparisons. It can also be described as a mathematical procedure of evaluating a statistic for […]
Current Ratio Definition: Day Trading Terminology
What is the Current Ratio? The current ratio can be termed as the efficiency and liquidity ratio that measures an enterprise’s capacity to pay off its short-term obligations using its current assets. It is a fundamental assessment of liquidity owing to the fact that interim liabilities are due within the following year. Financial liquidity refers […]
Bag Holder Definition: Day Trading Terminology
A bag holder in regards to trading is someone who holds onto a position when it goes against them for an extended period of time causing large losses. This typically happens when a trader enters a position and it goes quickly against them and they freeze like a deer in headlights. When this happens, beginner […]
Private Equity Definition: Day Trading Terminology
Private equity refers to a range of financial firms that restructure companies privately before selling them. While private equity firms may or may not buy and sell public companies, the companies are private entities during the restructuring process. Private Equity, Buyouts and Leverage Private equity firms have developed a somewhat notorious reputation for buying vulnerable […]
Debt Definition: Day Trading Terminology
A debt in financial terms is a legal arrangement that outlines a specific lending and repayment procedure for a given amount of some asset, most often cash. Most debts will carry a fixed or variable interest rate or payment to compensate the lender for the absence of their asset and the counterparty risk from putting […]
U.S. Treasury (T-bills) Definition: Day Trading Terminology
UST is the colloquial trading acronym used for United States Treasury Bills, or ‘T-Bills’. UST are short-term debt securities (less than one year) issued by the federal government to finance their operations and existing obligations, and come in a range of maturities and discount prices sold in denominations of $1,000 each. Discounts Vs Interest UST […]
Allocation Definition: Day Trading Terminology
Allocation in finance is the process where an individual or entity assigns portions of it portfolio across the major asset classes according to its appetite for risk, its investment goals and its relevant time horizons. Since different asset classes have different general performance features, the allocation process can theoretically create quite nuanced and sophisticated portfolios […]