Basic Stock Market Trading Terms

Averaging Down:  This is whenever a trader buys a stock as the price turn to down.  Then this creates it so your average buys price decreases.

Bear Market: This is a trading conversation for the stock market being in a downward trend or a stage of declining stock prices. This is the conflicting of a bull market. Every trader needs to Free Stock Trading Tips for higher performance.

Beta: A calculation of the relationship between a stock price and the fluctuation of the entire market. If stock abs have a beta of 1.5, that shows that for every 1 point shift in the market, stock XYZ shift 1.5 points and vice versa.

Blue Chip Stocks: These are the big, industry important companies. They propose a stable record of important dividend payments and have a standing of the sound fiscal organization. The expression is a consideration to have been resulting from blue betting chips, which is the maximum denomination of chips utilized in casinos.

Bull Market: This is whenever the stock market as an entire is in a prolonged period of rising stock prices. It is the reverse of a bear market.

Broker: A person who purchase or sells an asset for you in exchange for a fee (a charge). Here is Tim’s preferred broker. (LINK)

Day Trading: The process of purchasing and selling within the same trading time means day, before the close of the markets on that day. This is what Tim classically does, while he does have a long-term collection as well. Investors that contribute in day trading are often known as “active traders” or “day traders.”