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Written by Mikey Macainag
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Monday, 31 March 2008 08:15 |
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| Term | Definition | | Buy | The act of buying stocks or shares in the market in anticipation that the market will rise. | | | | | Sell | The act of selling stocks or shares that you currently hold. | | | | | Sell Short | The act of going into a short position. It is the opposite of buying, it is the sale of a borrowed stock in anticipation that the market will fall. | | | | | Long Position | The term for owning a stock you bought. | | | | | Short Position | The term for being short in a stock. | | | | | Resistance | It is the barrier which is marked by the previous high halting the price to continue to go up. | | | | | Support | It is the barrier which is marked by the previous low halting the price to continue to go lower. | | | | | Breakout | A price movement that penetrated a significant resistance level. This is normally followed by an increase in volume and volatility. | | | | | Breakdown | A price movement that penetrated a significant support level. Unlike a breakout, volume does not normally need to increase, but there is greater increase in volatility. | | | | | Trend | The general direction of the market; either up, down or sideways (trendless). | | | | | Consolidating / Consolidation | Generally considered as a period of indecision, it is when prices are neither going up nor going down. Patterns and formations are considered as consolidations. | | | | | Entry | The price at which it is recommended to enter into a position. | | | | | Stops | The price at which it is recommended to be out of your position. | | | | | Short Term | Our potential target price at which you can profit for the near term. | | | | | Long Term | Our maximum target price at which you can profit for the long term if you want to hold the position for the long term. | | | |
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