This is a special trade order that disallows the setting of the stop-loss price as a single absolute dollar amount but allows the setting of the value as a percentage usually below the market price. The percentage value helps to track the securities price direction automatically and does not require any manual reset. A trailing […]
Day Trading Terminology
Gap And Go Strategy: Day Trading Terminology
For day traders to achieve success in the market, a sound strategy is required. For profits to be realized, discipline is needed. One of the best strategies that has proven to work over time is the Gap and Go strategy. To understand what Gap and Go strategy is all about, you need to understand some of its […]
Volume Definition: Day Trading Terminology
Basically, it refers to the number of shares traded at the market during trading hours. It is also a measure of how much a particular security has been traded within a specific period of time. As a powerful tool, it’s used as an indicator when it comes to trading. In day trading, there are buyers […]
Divergence Definition: Day Trading Terminology
In day trading, divergence is a trading concept that forms on your trading bar chart and results from the price action of a security moving in opposite directions. This happens when the price of an asset or index makes a higher high but the indicator used makes a lower high, usually the MACD indicator. What […]
Freeriding Definition: Day Trading Terminology
To be a successful day trader, skill, discipline and training are among the most important attributes that one has to possess. Every trader has goals they would love to attain. Some of the goals include attaining good returns, minimizing risks and compounding growth. To ensure every trader has a fair leverage when interacting with the […]
Regulation T “Reg T” Definition: Day Trading Terminology
What is Regulation T? This is a collection of protocols formulated by the Federal Reserve Board that governs investors’ margin and cash accounts. When investors purchase securities on borrowed money, it’s referred to as buying on margin. Buying stock on credit exposes investors to huge losses compared to purchasing the same securities with cash. To […]
Electronic Communication Network (ECN) Definition: Day Trading Terminology
What is Electronic Communication Network (ECN)? ECN is a computer system that buys and sells orders for securities. It is an automated electronic system which takes up the role of a third party when it comes to execution of orders. This system is designed to allow trade orders entered by a market maker to execute […]
Gravestone Doji Definition: Day Trading Terminology
The D0ji is an important kind of candlestick pattern, but easily the most infamous kind of Doji is referred to as the Gravestone Doji. By definition this type of candlestick pattern is formed when the opening and closing price trends for underlying assets are essentially equal, but also occur at the daily low end. […]
Leading Indicator Definition: Day Trading Terminology
This refers to measurable factors of economic performance that shifts ahead of the economic cycle before it begins to follow a specific pattern. As a measure of economic performance, it is used to predict shifts in economic activity. What you need to know is that they (leading indicators) are not always accurate. According to financial […]
Lagging Indicator Definition: Day Trading Terminology
This is an economic statistical indicator known to shift after macro economic conditions have shifted too. It also refers to a measurable indicator which has been found to change only after the economy itself has started to shift and follow a particular trend. According to financial experts, lagging indicators are technical factors known to trail […]