Stock Market Basics
A share of ownership of a company
What is a Stock?
A technique that reduces risk by allocating investments across various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.
What is diversification?
A price pattern that signals a change in trend direction
What is a reversal pattern?
The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.
What is compound interest?
A term used to indicate that share prices are dropping, encouraging selling
What is a Bear Market / Bearish?
This Index tracks the 500 largest American companies
What is the S&P 500?
A chart pattern consisting of a drop in the price and a rise back up to the original value, followed first by a smaller drop and then a rise past the previous peak. This pattern, with a name
What is a cup and handle pattern?
A collection of shares and funds owned by an investor
What is a portfolio?
a group of stocks that have a lot in common with each other, usually because they are in similar industries.
What is a sector?
An analysis for forecasting the direction of prices through the study of past market data, primarily price and volume.
What is technical analysis?
A type of day trading order that lets you set a maximum value or percentage of loss you can incur on a trade. If the security price rises or falls in your favour, the stop price moves with it. If the security price rises or falls against you, the stop stays in place.
What is a trailing stop loss?
An account available in Canada that provides tax benefits for saving. Investment income, including capital gains and dividends, earned in this account is not taxed in most cases, even when withdrawn.
What is a Tax-free savings account / TFSA?
Stocks that can outperform any other stocks of competitors. These stocks have an emphasis on their “potential.”
What are Growth Stocks?
This type of ETF has a manager or team making decisions on the underlying portfolio allocation, resulting in higher commission rates.
What are actively managed ETFs?
This pattern requires a trader to draw two key lines within a stock chart to create a channel in which the stock will generally trade in for a period of time
What is support and resistance?
A type of investing account that allows you to borrow funds from the brokerage to invest. This kind of account comes with benefits and risk.
What is a Margin account?
Transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities.
What are mergers and acquisitions?
This ETF owns only non-financial Nasdaq stocks, making it a tech-heavy fund with the big names that you’re probably already familiar with. The ETF is one of the largest around, so it’s tremendously liquid. It’s not too expensive either, with the fund costing $20 annually for every $10,000 invested.
What is $QQQ / Nasdaq Index ETF
This very short term trading pattern starts with an Ignition bar, and ends with a trigger bar.
What is a 3/4 bar play?
This sector has the highest dividends yield, making the companies in it a great long term investment.
What is the Telecommunication services sector?