STOCK TERMS TO KNOW

Open-  the first trade as recorded at 9:30 AM EST.

Close- last trade as recorded at 4 PM EST.

Long- to buy low and sell high.

Selling short (or shorting)- to sell high and buy low.

Margin- money the broker will lend you.

High- highest recorded trade price.

Low- lowest recorded trade price.

Range- the difference between the high and the low. 

Bid- the sell price.

Ask- the buy price.

Spread- the difference between the ask and the bid.

Market order- to fill an order (stock purchase) at whatever the price is now.

Limit order- a specified price that you are willing to pay or receive for the stock.

Day order -the order is only good for that trading day.

GTC (good till cancelled) -the order will stand until it has been cancelled.

Stop loss- market order to sell below a set price. 

Stop limit- limit order to sell below a set price. 

Buy stop- order to buy, if it stock trades above a set price.

Trailing stop- stop orders that will follow the stock price.

OCO- one order cancels the other.

There are three types of stock traders: a position trader buys and holds stocks anywhere from 2 to 12 weeks. A swing trader buys and holds stocks anywhere from 2 to 5 days (possibly up to ten days). The day trader buys and sells stock positions only DURING the trading day from 9:30am until 4pm EST.

There are two types of trading: Fundamental Analysis which focuses on a company's bottom line (company's accounts, management and financial health). Technical Analysis which focuses on a company's stock chart (candlestick and trend patterns).  

The candlestick has four pieces of price information: the high, the low, the open, and the close. If the stock price closed at a higher price than it opened the candlestick is filled with green. If the stock price closes at a lower price than it opened the candlestick is filled with red.

Bullish means up trend. Bearish means down trend.  In an up trend, a stock's highest trading price is getting higher and its lowest trading price is also moving higher. In a down trend, a stock's highest trading price is going lower and its lowest trading price continues to go lower. The trend is your best friend. Trading with the trend increases the probability of a successful trade.

Resistance is the ceiling. Support is the floor. These are the prices that repeat (meaning have traded at the same high, low, open or closing price on a stock's chart) 

Price and volume don't lie. They are the only true indicators. MACD & Stocastics are considered lagging indicators, which means the action has already happened. This is why we don't use them. 

Volume is the steam the engine. It determines momentum and strength. Volume reflects the amount of people trading (buying and selling) that stock. The volume can also drive price.