How To Know The Vocabularies of Investors

 

Hi, Welcome to Tips&Tricks for Online Income. Maybe you are new to the world of investors or not there are some terminologies that you as a future investor should know. As this post unfold I hope to enlighten you to the simple terminologies of investors as well as how they affect you as an investor. There are five terminologies that I believe you as a new investor will come across the most.

 

1. Day Trading/Scalping

 

This is someone who will buy and sell stocks on the same day depending on how many they buy and the actually cost of the stock. Depending on which program you are using to being a "day trader" can actually cost you more money than you are making.

 

2. Dealer/Broker

This is the person that you pay when you want to invest but not do it yourself. Normally this person has been very well educated and has the capability to make you the most money, but this also comes at a cost. When a broker makes you money they take a percentage to fund their business.

 

3. Stop Loss (PUT/CALL)

This is a very simple term, when you buy a stock you have a couple options one of those after purchase is a Stop loss. This means that you can set your desired price and if the stock drops below a certain amount the stock will automatically sell. Now one of the problems with this is that if you sell a stock too quickly because for one hour it drops below a certain price and then very quickly raises again you have the potential to lose money.

 

4. Blue Chip Stocks

Here are your stocks that offer a high return rate and are often very stable to invest into. Most of the time they are your large companies that have been around for a long time and show no signs of disappearing.

 

5. Order/Request

This term is as straight forward as it seems actually. When you go to buy or sell a stock what you do is put in an order. This order then trickles to the computer and places your order. Depending on how fast the order is placed depends on the actually cost of the stock when its purchased.

 

These are just a few of the terminologies that you might want to get to know if you plan on beginning to invest. As you begin to invest other unfamiliar words will start to stand out, just remember to look them up or consult with a well trusted friend as no regret.

 

HAPPY INVESTING....