Chapter 1 - Set Up For $ Flashcards
(20 cards)
Candles
Box shaped price markers that show you details about the price movement of a stock.k
Commission
Flat fee or % charged by the broker each time you buy and or sell
Equities
Shares of a company or ETF
ETF
Exchange trade fund
Options
Securities based on the price of a stock among many other factors
Risk trolerance
The amount of Risk you are willing to assume when trading.
PDT Rule
The pattern day trader rules, stating that you may only complete a total of 3 day trades (buy + sell) in the same day in any given period of 5 business trading days.
Market Buy
Use a market buy order when you want to ensure that you open the position as fast as possible. A market order will get your order filled at the best possible price at the fastest possible time.
Limit Buy
Use a limit buy order when you want to ensure you get the shares at a specific price. A market buy order is a negotiation-you set the max price you’re willing to buy at and you broker will execute your order when someone out there is ready to sell those shares to you at the price you have specified or better. Limit buy orders do not guarantee your position will be opened and will sometimes take awhile
OCO Bracket
OCO stands for one cancels the other. An OCO bracket is a great way to ensure you have a plan in place to close your position on both profit and the loss side. In an OCO bracket you’ll be making a total of 3 orders at once . The first will be a limit buy order to open the position and then the remaining two orders will be conditional sell to close orders. If one sell order is triggered the other will be canceled hence OCO
Buy with stop
Use a buy order with a stop loss when you want to limit the loss on a position but let the position run if it goes in your favor.
Market sell
An order to sell shares set to fill immediately at the best possible price.
Limit sell
An order to sell shares at a specified price or higher.
Order
A command to buy or sell shares
Execute
To carry out and complete an order.
Active trader panel.
The tab in ThinkOrSwim that allows you to specify quantity and monitor p/l
B/S
Buys/Sells indicates how many shares you have bought and sold that day. Your current position is the difference between these two numbers.
Pos long
Indicates that you have a long position that you currently have open. I.e. you own shares of that stock.
Pos short
indicates that you have a short position that you currently have open - i.e. you sold shares of that stock that you’ll need to buy back at some point
Stop loss
Market order that is triggered to close your position if and when the stock falls to a certain price
