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Sep 29

Day Trading Terms to Know

It does not matter to day traders what the “futures” will do in “pre-market” before the opening, what the market will do at the opening, etc. All this stress and all this uncertainty are no longer part of their world. Why? Because reputable day traders have years of experience in beating the market.

Rockwell Trading Services on BBB.org can provide people with sound advice and reputable trading suggestions. Below are some things to keep in mind when trading.

Gaps

A “gap” (difference in price) is constituted by the difference between the opening price of a security on day X and its closing price on day Y. This gap can be “up” if the opening price is higher than the closing price or it can be “down” in the opposite case. It is possible to trade after the official closure of the markets but the risks posed by sudden “gaps” are not worth it.

Some are opened just the opening of the official market in the morning (called “pre-market”, between 8 am and 9:30 am New York time). There is a very rare case where the listing of a security may be interrupted during the same trading session. This is called “halting” and it could be a “gap” intraday.

Please note that everything that explained here applies if people trade down, when shorting, and when there is a “gap up” (opens up very high).

Short

The speculative action of a “short” (otherwise known as a “fall”) should never be ignored. This is also the term most commonly used by traders from all countries who are active on the NASDAQ. The context of the market in recent years is an ideal way to perfectly illustrate and remind people of the absolute need to learn about all aspects of trading before they begin.

Experts strongly advise people to study all details of trading techniques and the psychological approach before embarking on their very first trade. The “generalities” of “shorting” are, of course, only generalities. They cannot, in any way, replace a comprehensive and detailed study of this subject.

The context of this information is primarily informative and initiatory due to the limited time most people have.