Important Investing Words To Know

Share:

Investing has a slew of jargon that everyone should be familiar with regardless of experience level. I aim to shed some light on some of this essay's more basic investing concepts. These are the five phrases you’ll likely encounter the most as a first-time investor.

Photo by NicoElNino on Unsplash

1. Stop Loss
One of the choices you have after purchasing a stock is a Stop Loss, which is a pretty basic concept. There is an option to have the stock automatically sell when it dips below a specified price. Selling stock too fast because it dips below a specific price for an hour and then swiftly rises again is one difficulty with this, and you may lose money.

Photo by zeynep boğoçlu on Unsplash

2. Blue Chip Securities
These are the investments you may make that will provide you with a high rate of return while still being somewhat stable. The most common culprits are large corporations that have been around for a long time and aren’t going away anytime soon.

Photo by Black_Kira on istockphoto

3. Day Investing
Buying and selling stocks on the same day is what this person does, and it is determined by how many stocks they acquire and how much they pay for the stock. Depending on your software, it is possible to lose more money as a “day trader” than you make.
4. Order
It’s as simple as it seems to describe this concept. When you want to purchase or sell a stock, you place an order. Your order is then placed by the computer due to this transaction. If you order quickly, you may save money on the merchandise you buy while it is cheaper.
5. Broker
This is the person you hire when you want to invest but don’t want to do it yourself. They are usually well-educated and may earn you the greatest money, but they are also expensive. A broker takes a cut for every dollar you earn to keep their company running.

If you want to start investing, you need to familiarize yourself with a few key terms. Remember to check up or speak with a trustworthy friend if you see strange terminology popping up as you become more invested.