Security

Fungible, tradable financial instruments used to raise capital in public and private markets.  There are three types of securities: equities (which provide ownership rights to holders), debt (loans repaid with periodic payments), and hybrids (which combine debt and...

Trailing Stop-Loss

A form of stop-loss designed to keep profit coming (or prevent loss) as the price of a stock remains moving in an investor’s favor.  Generally opened at the same time as a trade, a long position would put a trailing stop-loss at a price lower than the current...

Parabolic Move

Trading slang referring to an exponential growth in a stock’s price.  The term comes from the appearance of a parabola graph in mathematics.  In a parabolic move, the stock price takes the appearance of a parabolic graph, meaning the price is rising at a rapid...

Market Rotation

A period of time when a stock market sector that had previously been struggling begins outperforming competition and becomes a market leader.  A market rotation can be long or short-term.  These rotations are typically triggered by an external event.  The scale of the...

Market Cap

A figure used by the investment community to determine a company’s size.  It refers to the total dollar market value of a company’s outstanding shares of stock.  The market capitalization (or “market cap”) of the company is calculated by...

Macro Trading

In contrast to Micro Trading (which is industry specific), Macro Trading is taking advantage of changes within a large sector.  Traders utilizing this strategy will study Macro factors to analyze and predict the future performance of a specific sector.  They use...