Stock Trading ABC
“Our stock trading terminology explained”
The wikipedia for Technical Analysis or the webster dictionary for serious long-term investors as we call it. Here you can find the meaning of the terms we use on this website. We will not give you stocktrading lessons, there are other websites for that, but everything you need to know about what is being discussed in our posts is explained here. From simple questions like: “What is a bar-chart?” to more advanced techniques like: “How the MACD indicator works?“. You will find the answer here and we will explain it in a short simple sentence.
The reason for this website is to educate people. Also we do not want to keep the knowledge of what we have learned (in the past 30+ years) for ourselfs. Everybody could benefit from it. And we got some questions about our terminology. We realized that sometimes the text can be complicated because the subject is. Nobody knows how our technical analysis, strategy and our stocktrading in general, works in the same way we do. Here we will clarify it for you in one easy definition with a more advanced explanation afterwards.
These pages are always under construction (a work in progress). We will start with a few hundred articles and slowly extend it more and more. Going forward we will explain in simple words what the terminology means. If you have any more questions just ask us. You can fill out the contact form (here) and we will explain it to you.
Below you find a selection from A to Z.
For all terms you can use the search function.
CATEGORY VALUATION:
- Quarterly EarningsIn short: Quarterly Earnings is an obligated financial report that covers three months of the year, A quarterly earnings report is a…
- Average Yearly ReturnIn short: The Average Yearly Return is the midpoint of several returns on investment added up and divided by the…
- the Relative Strenght Index (RSI)In short: The relative strength index tells you when a stock is overbought or oversold. The relative strength index (RSI) is a technical indicator used in…
- Return On InvestmentIn short: The Rate Of Return or Return On Investment (R.O.I.) is a percentage of the total end value measured…
- OversoldIn short: Oversold is when there are much more sell orders than buy orders. What is an oversold condition? To…
CATEGORY INDICATORS:
- Average True Range (ATR) indicatorIn short: The ATR indicator takes the current period high/low range compared to the previous high/low range. It is most usefull in measuring the strength of a move. if…
- Ichimoku Cloud IndicatorIn short: The Ichimoku Cloud are 5 of indicators that show support and resistance levels, as well as momentum and trend direction. It also uses these figures to produce a “cloud” which attempts…
CATEGORY INDICES:
- the Baltic Dry Index (transportation index)In short: The Baltic Dry gives an overview of the average cost of transporting raw materials around the world. The Baltic…
- the Dow Jones IndexIn short: The Dow Jones measures the 30 largest companies in the U.S.A. The Dow Jones Industrial Average (DJIA) is perhaps…
CATEGORY TECHNICAL ANALYSIS:
- Bar ChartsIn short: A Bar chart consist of symbols (Bars) where the opening and closing price is given as a line to…
- CandlesticksIn short: A Candelstick is a chart symbol of a specific period where the opening and closing price is given as…
CATEGORY BROKERS:
- Best Brokers (online)In short: Online Brokers come in 2 types, full-service and self-service. Depending on what kind of service you expect there…
- Best Mobile BrokersIn short: The Best Mobile Brokers are trading platforms used in an app on a mobile phone. The winners are…
- The history of shares and the stockexchange.The world’s first shares date back to Ancient Rome Although it was in northern Europe at the beginning of the…
- What is payment for order flow?In short: “Payment for order flow is the way your broker will outsource his order fullfillment. They usually have a…
CATEGORY DEFINITIONS:
- What is payment for order flow?In short: “Payment for order flow is the way your broker will outsource his order fullfillment. They usually have a…
- HFT – High Frequency Trading (is helping)Gone are the dealers on NASDAQ and the specialists at the NYSE. Instead, a company’s stock can now be traded on up to sixty competing venues where a computer matches incoming orders. A majority of quotes are now posted by high-frequency traders (HFTs), making them the dominant source of liquidity in the market.
- FibonacciIn short: Fibonacci retracements are based on the key numbers identified by mathematician Leonardo Fibonacci in the 13th century. Fibonacci’s sequence is expressed…
- A Bull MarketIn short: A Bull Market when stocks in general go up about 20% we call it a bull market. A…
- A Bear MarketIn short: A Bear Market when stocks in general go down more than 20% we call it a bear market….