Learning Common Stock Trading Acronyms and Day Trading Terms

Are you going to be an active investor, or a passive one? What kind of securities and tools appeal most to you, and how much work do you want to do to develop your portfolio each day?

Next, you need to decide how you’re going to enhance your skills and develop the kind of cash-making opportunities relevant to your brand. However, before you can accomplish any of these things, you first need to understand the language used in the trading world, and how you’re going to use it going forward. Today, we’re going to examine some common acronyms and terms you’ll need to get used to when learning how to trade stocks going forward.

Acronyms for Stock Trading

Things move quickly in the stock-trading world, which means that acronyms are a common way to communicate. High of Day – or HOD, is the best way to refer to the high point of a day in a trading environment, while LOD (low of day) refers to the lowest point. By using acronyms, brokers and professionals can keep things moving fast. Some acronyms you might see include:

• O/N: over night
• Green to red (G/R) or Red to green (R/G): The first means a stock was above a prior day’s closing number but now it’s below it. The second means the opposite, the stock was below the price of the prior day’s closing, but it’s now above it.
• SS: Short sell, or Short selling
• ADR: Average day range for a specific number of days, often shown as a number: ADR30
• DD: Meaning due diligence, or to do your research on something
• Low float: A lower number of shares actively traded – often in small cap companies
• PPT: Plunge protection team, or the job that comes at the end of the day to give the market a boost for the next market session.
• UBB or LBB: Upper Bollinger band or Lower Bollinger band
• SSR: Short sell restricted or downtick role
• ER: Earnings report

You may also encounter terms like AH for after hours, or Pre for before market trading if you work with a broker who offers numerous ways to trade outstand of the standard hours.

Understanding Trading Language

Understanding the various trading terms and acronyms that may occur when you are working on your portfolio is crucial. The more you know about the different terms in the landscape and what they mean, the easier it will be to understand the flow of information in your landscape. If you have trouble understanding some of these terms, you can also speak to a professional broker or mentor about your options.

There are plenty of ways to develop your skills if you are looking to learn more about how the marketplace works. It’s also worth keeping a closer eye on how the marketplace is changing and making sure you’re aware if any new terms come up. This should stop you from falling behind your competition.