Do you know what the number one reason for people not getting into day trading is?

Not understanding the jargon and basic day trading lingo. AFTER THIS VIDEO YOU WILL BE A PRO!

You know what. When I first started my Day Trading journey I was looking up words left and right. So many of them felt like it was simply a different language altogether.

So here’s the secret that no one is sharing – there are limited number of words and phrases that you really need to know to be successful at day trading.

I’ve been doing this for YEARS and now when I hear big words being thrown around by ‘Experts’ I totally ignore them. They are only saying them to feel self-important.

Here is a PDF of the most popular words that any person can easily learn and start day trading feeling confident. 

And above is the video that will help you to learn all the day trading lingo you need and for those words and phrases sink in so they become your new norm.

IMPORTANT TO NOTE: once you really get into your financial market there will be more words specifically for that. In this mini course I cover the general terms used for any market so you will feel confident enough to start and definitely not feel lost when reading or speaking to anyone about this. 

You can also read on below to get the full transcript of the video above and to access all of the day trading lingo discussed without having to click off this page!

Hey Traders! It’s Marina, the ‘Trader Chick’!

And today what we’re going to be talking about is day trading lingo. You know sometimes if you’re just starting out, or even if you’ve been doing it for a while, the words sometimes simply don’t make sense.

For example, if I was to enter the Formula One driving world, probably half of the stuff that they  say there I wouldn’t understand. And it’s the same when it comes to day trading lingo and financial markets in general. 

Sometimes when you hear words it just makes no sense. So today I’m gonna simplify it and you are going to be talking like a pro. 

Are you ready? Let’s go. I’m Marina the trader chick and if you haven’t subscribed to my YouTube channel do so below because I’ve got lots of goodies coming to you every single week. We simplify day trading entirely and make it accessible to everybody. Alright, let’s dig in!

I will also say that understanding all this day trading lingo can seem overwhelming for someone just starting out, but take your time and I guarantee it will become like second nature in no time!

But I will say this too, understanding day trading lingo is still only one piece of the puzzle (though it is super important for sure) – you still need to put in time learning the fundamentals of day trading principals and financial markets which will also become second nature over time as well – if you really put in the time and make use of my help in doing so.

Day Trading Lingo Simplified

All right guys, are you ready? Because the trader check is  going to simplify your day trading. Today we are talking about day trading lingo. 

Have you ever been in a place where it’s something foreign to you and you simply don’t know what people are talking about? I mean it depends on the industry you’re in  

If you enter a formula one driving world you probably won’t understand half of the stuff they say. If you enter the medical world, I definitely don’t get anything they say. 

But I sometimes feel the same when it comes to day trading and the  financial markets all together. So instead of feeling completely out of your realm and (that’s what kind of keeps you from starting) today I’m going to simplify it and you’re going to be talking like a pro. 

Let’s begin, okay.

Intraday day trading  

What is that? Honestly this is exactly what it means – ‘intraday’, you are in and out of all of your positions within the same day meaning you do  not hold anything at all overnight. So everything you’re in, you close your positions, otherwise that  becomes a completely different kind of trading and we’re going to talk about intraday right now.  

Bull markets 

I’m sure you’ve heard of that before. What is a bull market? It’s literally just a market going up, just a raging bull going up that’s it. Market going up, market trending up. That’s what a bull market is. 

Bear market 

The exact same thing (as a bull market) but going down, the market is going down. Super simple, market is going down, market is trending down.

day trading lingo
Key day trading lingo – a bear market is a downward trending market.

Sideways Trend

All right so there are technically three trends in the market. It doesn’t matter which market you are looking at and it doesn’t even matter if you’re day trading or long-term trading or long-term investing it’s all the same. 

You either have an upward trend, a bull market; downward trend, a bear market or a flat sideways trend. 

We could call the sideways trend a channeling market or an exhaustion pattern. But it’s usually flat so there are three trends that we should really understand. 

Next these are really important to understand: 

Profit target 

What does that even mean? So when you enter a trade you really need to  have a profit in place you can’t just go in and leave it there.

That’s more long-term investing. We are talking here about trading day trading. So you need to set a profit target i.e. when you are going to exit the trade with a profit  

Risk Management

But at the same time you also need to have risk management in place. 

You could also understand it maybe as a stop loss, what that means is when you enter a trade you always need to have a risk in place. It depends  on what your strategy is but you have to have it there. 

This way you don’t end up losing all of  your money and trust me we could do that because a lot of people put in mental risk management or mental stop losses. Those do not work. You need to have a defined risk management in place. You need to have that there so whenever you hear  people say ‘what’s your risk management?’ or ‘do you have a stop loss in place?’; now you understand what that means. 

It’s where what is the most you are  willing to lose on that particular trade. 

day trading lingo
Risk management is a major part of day trading and this term is part of the day trading lingo you need to learn.

Charts  

For day traders you can not survive without a chart. It’s literally like a Formula One driver, but they don’t ever get a car – they’re in a minivan or in a little tiny car that you just drive around town in. 

You need to have the right software, the right vehicle for your trading. For day traders we need to work with good strong charting softwares. I personally recommend having a charting software that is on your desktop. 

I have a video that you could watch so make sure that you sign up and the video is going to be below as well. 

So make sure that you check out that video but every day trader needs  to have specific charts – a charting platform. 

Indicators 

All the charting softwares they come with universal indicators that is part of their software; that is part of what they offer. 

I do not recommend buying indicators, softwares, algorithms, bots none of that. Again I have another video that you could check out, make sure you are subscribed.

Because there are tons of really powerful videos  that will help you understand this so much better. So remember indicators, they are included in your software and you as a trader you need to have certain indicators that you work with, that you understand, that will really help you move along  

Trending markets 

As I mentioned before there’s only three trending markets; i) going up ii) going down or iii) going sideways; the bull market, the bear market or the channeling market. 

Now let’s talk about entering the markets because we day traders go up or down we can enter either an upward trend or downward trend. 

But to understand what  that means these are the terminologies that are used. 

Buying/Going Long

When you’re buying or you are going long, what does that mean? It means you are entering the market at a lower price point and you’re exiting the market at a higher price point and you’re taking the profit in between. 

So that is really important for you guys to understand. When you’re buying you’re going long.

Selling/Going Short

So the opposite of buying/going long is selling or going short. This is on a downward trend, when the market is going down. It’s trending down. What does that mean when people say, ‘I’m going short’ or ‘I’m selling’, what does that mean? 

It means you’re entering the position at a higher price point and you’re exiting at a lower price point and you’re taking the in between profit.

Market Entry

This is really important for day traders. 

Market entries are crucial. When you are day trading, what you’re  going for is a specific price point. If you go in a market (at ‘market entry’) that means you’re entering whatever is right in front of you. 

That works really well if you’re going for a longer term because you  don’t really care right away about the current market price.

So what we do as day traders we need to put in a limit order or an  order waiting. What that means is you are telling the market exactly where you want to enter. That is called limit order or order waiting. 

Because the market price goes in right away and when you go in with the market price or when you press market entry, that is telling the market that you don’t really care if you lose a little bit, or what that loss is, it’s called slippage.  

I don’t want to get too complicated, however, for day trading we need to understand that you are telling the market where you are entering  the market, not just where it is at the moment, you have a set price in mind so you will use your software to put that in and that is all part of your charting software. 

Stop Limit

Again the same  goes with a stop limit you do not want to exit at a market exit. What that means is when you’re just pressing market price to get out of a trade you’re going to lose a little bit of money because we’re going for a certain amount of money in a day trade. 

It’s a lot less than if you would go for a longer one you need to set your stop limit. and what is that that’s that risk management that is that  stop loss.

Technical Analysis

You will hear people talking about technical analysis when it comes to day trading. Basically it is literally reading what the chart is telling you. That’s when you use your indicators. That’s when you have a strategy. 

That is understanding the terms: going down, ranging sideways, upward trend. This is technical analysis when you are watching your charts to understand what is going.

That includes having areas, divergences, reversal areas, these are the super basics of what technical analysis is all about. 

I’m going to go into it right now in a little bit more detail. 

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Areas

Understanding areas. Areas are super important because the market  will revisit those areas again and again. And you need to have them drawn out and really understand what they are all about. 

The two main areas are resistance and support. I have videos for both of these areas really in depth so you could really understand. So go down and make sure that you  are looking at all the videos below.  

And also subscribe because i’m constantly doing new ones. 

All right, let’s jump into the resistance area.

Resistance Area  

You’re going to be hearing people talk about resistance a lot of times. All it literally means, it’s the ceiling of the market, it’s where the trend is going to hit the market over and over again several times or more, going upward it’s a ceiling that’s all it is.

That’s all you really need to understand nothing else. 

But you do need to be able to draw that in. 

Support Area

Support area is the exact opposite. It’s the floor of the market. It’s where the market is bouncing off the floor three or four more times so that you  have that support area. 

A lot of times these areas could either transition the trend altogether or it could break through and continue on. 

But in the meantime you have to understand when you hear people say, ‘oh there’s a resistance forming’ or ‘there’s a support area’. So now you understand resistance is ceiling, support is the floor. 

day trading lingo
Charts, indicators, reversal patterns are all part of the day trading lingo covered in this post in one convenient location so you can some back and look them up when you need to!

Reversal Patterns

All right reversal patterns. You’ll be hearing people talk about, ‘oh there’s a reversal pattern coming up, I’m seeing a reversal’. 

Reversals are really really simple to understand and once you get it and once you start trading this could revolutionize your trading all together. 

And again I have videos for all of these different aspects and really getting  into them but for this particular video we just want to understand and have a quick understanding of it.  

Reversal patterns it’s when you could have a double top when your pivots are doing like an ‘m’ or a triple top or double bottom double a triple bottom or you could also head heaven shoulders as well meaning you have a shoulder ahead and the shoulders coming through 

And you’ll hear people say oh there’s divergence forming. Basically, when you have two different  indicators well you have an indicator that works alongside your price action. The  price action is when you see these bars and the indicator could be going in the opposite direction.  

So if one area if your trend is going up and your indicator is going down that’s a divergence or  vice versa your trend is going down and your indicator below is going up that’s the divergence. It’s literally when your indicators are diverging that’s all it means.

Again guys this was super quick for you to get like the super basics this is literally what you’ll be hearing the majority of people talking but now you know now you’ll be able to totally understand what is happening.

And if you don’t you could always email me at: thetraderchick@gmail.com

And again subscribe to  my youtube channel for a lot more videos like this!

Have questions or need help?

You’re probably not the only one.

Head over to the Facebook Group devoted to this course and sing it loud and proud.

I’ll answer all your questions there and make it helpful for all other aspiring day traders too.

P.P.S – You know what’s really fun? To do this mini course with another aspiring trader for support and accountability. 

Share it with a friend (it’s always open to enter) or make new ones in the FB Group to keep you on track.