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Day Trading Basic Vocabulary

Learn Day Trading- Basic Vocabulary




Full Transcript

Today’s lesson is about Learn Day Trading. Understanding the basic terminology. We’re going to go over today the basics, right? The super basic terminology, which is used all the time. You will hear it talked about.

Whenever you’re watching financial news, whenever you’re hearing any day traders talk. This is like the super basics, kind of like in music, you would hear dough ray mi fa. So lots of dough. Those are the notes, right, when you start to put them together.

That’s when becomes really complicated. Then the scales and this and that. So right now we just want to focus on basic terminology so that when you do begin.

Diving deeper into your day trading journey, you will feel as lost or confused with the words. OK, so let’s begin. OK, so the first words we’re going to learn is the basics. This this is as easy as it gets.

Intra Day Trading Basic Vocabulary

Intra day trading literally just means intra in the same day. So whenever you hear intraday trading, it normally means you are completely done with whatever it is you’re doing before the end of the night and that’s it. You’re done with within twenty four hours actually is a better way of saying it because forex is 24 hours, but usually it’s between market hours.

So it’s the bull market. You know, when you see the bull on Wall Street, basically it just means. A bull running, you know, it’s a market that is going up higher and higher and higher. And the bear market is literally the exact opposite of bull market. It’s going down.

There’s really no significance of what the animals represent at this point. We just know bullish. It’s going up bearish. It’s going down. Very important to understand in day trading. We do not care if it goes up or if it goes down. We could work with the market. Excuse me. Either way, we can work where the market is going up and we can do the exact same with the market going down.

Learn Day Trading Basic Vocabulary

Once you learn your technicals and once you learn indicators, you’ll see that it’s just mirror image or I should say negative image of one another.

We do not care which way the market moves profit target. So obviously you’re looking for profits right now in day trading. It’s really good to have a target in place. OK. You don’t want to get greedy.

That’s really huge. Greed can really wipe you out. Right. Because you’re going to if the market is going in the direction that you wanted to go. Right.

Whatever it is, if you’re going up or if you’re going down, you need to set a profit, target it, especially in the beginning. Get out when you have the target that you set reached, get out, because sometimes it can get your target, the one that you initially wanted.

But you got a little bit greedy thinking it’s going to continue on in that direction. You move the target profit and family goes the exact opposite direction and you get stopped out. So is it worth it? No.

In the beginning, set those profit targets and let it reach them and be grateful. Honestly, it will help you on your day trading career. Really? Risk management. OK.

This is probably the most important thing that you will need to do is you need to set and hold that risk management. Whatever it is. You enter a trade. You know exactly how much you want to risk on that trade.

Do not even think about letting it go further because what if it times what if it goes no direction? Get out. Lick your wounds and get right back in when the next valid trade.

Exists OK. We have all traders have done this. They have moved their risk. Take it from me. I have lost thousands of dollars because I wanted to buck the system. I wanted to be like, you know, it’s going to happen. It’s gonna happen.

No, that is not a professional trader. You can not move your risk to be more. Certainly, You can make it less, but not more.


What are charts? Charts are going to be.

Everything. It’s like a canvas, right? It’s what we work on. And the indicators is what we draw on. OK, so here’s a better image of what a chart looks like. This is a chart and these lines that you’re seeing all over the place. That is. The indicators you could do whatever indicators you want. You are simply looking at my indicators.

But so you’re going to be doing everything from the chart. You could not trade blindly. You can not just say, I’m going to enter here and I’m going to get out here. No, you need to see what the market is telling you and the way we read the market.

Is visa charts OK? Trending markets, what are trending markets? Basically, the market moves in three different ways. Three different trends. We have an up trend. We have a downtrend and we have a sideways trend. So sideways trend downtrend.

There is no other possible trends. The market can be giving you. It doesn’t matter if the trend lasts for 10 days or if the trend lasts for 15 minutes. It is an obvious direction that the market has chosen. Usually the best trading trends are up or down, sideways markets can be really difficult to trade. And that should be much more advanced in your trading career.

By what is a by a BI is when you are buying. A position that is going to continue up long is the exact same word. You can say I am buying to enter here.

Going Long or short

We all know right away that you are wanting your profit to go higher than the price that you entered. Going long is identical. Going long means that you are going for the up trend that you are entering at a certain spot and you want your profit to be higher than the then.

The area that you entered. So for instance, if you enter here at a. If you’re buying or going long, either one is identical.

Your profit is higher than when you entered. Enter here. I’m buying long right here and there. I’m going long. Enter or exit. They’re buying short.

Identical to buying going long. So you’re selling. That means that you are entering where you want the price to go further down for your profit. You are going short. That’s all that means. OK, so if you are entering here, let me show you right here.

If you are entering right here at this first red circle and you are exiting here, that means you have just entered a short position. You are selling here and you are exiting right here to get your profit at a much lower rate. This is going short.

You are selling and going short. It does not mean that you are selling your position and getting money. It literally just means that you are going in for a profit. That is going to be. Wait. The price range is going to be less than where you entered. But the profit is the same as when you are going high. It does not matter is just the mirror image.

The negative of what going along and buying is. So when you enter the market, there are two ways you could enter the market. Market entry means I am going in, right?

The second, the second I see that price. That’s where I’m going. You do not do that for day trading. You do not do that for day trading. That is only when you are investing for the longer term because you don’t care what that little difference in price is. Right. Because in the long term, you’re going to be sitting on it. It’s different.

But for when you are day trading, you want to limit order. You want to have your order of where you want to enter. Waiting there already, you know which price you want to enter. And that is called the limit order. OK. So market entry you into right.

This second limit order you have, it’s sitting at a price that you with your calculations, with your technicals and analysis, you know, that is going to get to that area for you to either go long, you want to go high or you’re selling short and you want the market is going lower. That is a limit, order, stop. Limit is your risk.

You automatically put where you want to be stopped at stopped out means where you want your risk to hit and you are out of the trade. It’s you put that in immediately, just like you do with your target for the profits. You do the same for the risk. And that’s called stop limit.

Learn Day Trading- Resistance & Support area

Areas in the market is going to hit areas over and over and over again. So what happens a lot of times is there could be runs in a trend and then the market will hit an area. It will just keep on hitting that area over and over again. There are two main areas that you need to understand right now. There are more. And I will be going into a lot more of this in my beginners Boot camp for day trading, but right now, the main ones that you probably have heard without even realizing is resistance area and support area. Those are your two main ones. The resistance area is like a ceiling where it hits on top support area is like a floor where it hits on the bottom.

All right, so let’s look at the resistance area. So here we have a market that is going up, up, up and.

Each to all of a sudden, it keeps on hitting this area. This is a resistance area. A resistance area gets hit at least I like to I like to have my rule of thumb about three times for me to really consider it a full on area, a strong resistance area is when it hits the area several times and then changes the direction of the market. So it went from an uptrend.

Now it’s in a sideways trend. Right. Which is hitting this particular area. And then it turned and went into a downtrend. This is a strong resistance area.

Support area is the exact opposite. It’s the floor, right? The support area’s exact opposite of a resistance area. So here we have a better look at it.

All right. So the market has been going down and now it’s boom, boom, boom. It’s hitting this area and it is not breaking through. This is a support area until it finally changes directions. OK. This these you’ll see quite often. And it’s really important not to trade while this is happening. This action of the constant hitting because you will.

You can lose because you never, ever want to speculate where the market is going to, you always need to know to let the market tell you.

And in a support area, one keeps on hitting this area. You think, oh, well, it’s been going down, it’s going to break. You don’t know. That’s speculation and that’s gambling. All right. So we just sit and we wait, it`s the part of learn day trading journey. And this is where we sit and wait, because this is a support area.

Shift in Trend in your Trading

The floor of this trend and bam, it finally changes direction. And that’s when we start to look and see if we could go long answer positions. So this is a support area. So these are the super basic terminology that we use in day trading. There’s a lot more.

I will go into them a lot more in the Beginners Bootcamp for day trading. However, just for now, you don’t want to get overwhelmed, but you will unders.

You will now start to see these words and they will totally make sense to you of what’s happening in the market. All right. So this is a really great way for you to begin understanding what’s happening in the markets. And when you start to look at the different charts or you’re hearing different commentary, you all feel lost anymore.

If you have any questions and you want to learn day trading-, you know where to find me.

Send them all off into the Facebook group. I’m loving to answer all of your questions. I know that a lot of other people who maybe aren’t as vocal are learning just as much and are really getting the information and seeing what is happening with the other students. So please share. Don’t be shy.

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Day Trading Basic Vocabulary


Day Trading Basic Vocabulary