Category Archives: N – T

Terms that start with the letters N – T

Straddles

A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock.

Shadows

A small line (like a candle wick) found at the top or bottom of an individual candle in a candlestick chart.

Resistance Line

A point or range in a chart that caps an increase in the price of a stock or index over a period of time. An area of resistance, resistance line or resistance level indicates that the stock or index is finding it difficult to break through it, and may head lower shortly. The more times that the stock or index tries unsuccessfully to break through the resistance line, the stronger that area of price resistance becomes.

Price to Sales (P/S Ratio)

The price-to-sales ratio (Price/Sales or P/S) provides a simple approach: take the company’s market capitalization (the number of shares multiplied by the share price) and divide it by the company’s total sales over the past 12 months. The lower the ratio, the more attractive the investment.

Price to Earnings Growth (PEG)

Price to Earnings is the most usual way to compare the relative value of stocks based on earnings since you calculate it by taking the current price of the stock and divide it by the Earnings Per Share (EPS).

Stock Volatility

Stock volatility information can be used in many different ways but here is a quick and easy bit of stock volatility information that you can begin using today.

Stock Exit Strategies

It is impossible to predict what the market will do today, tomorrow or next year, but there is one thing that is definite: markets go up, they go down, and they stay the same.

Timing System

Everywhere you turn there is another proprietary stock market timing system being sold. Let’s take a few minutes to review these claims against common sense.

Offer Price

It is only an offer and will not be accepted if the seller is not willing to let go at the offer price. This offer price pertains to all traded investments.

Spread

The difference between the ask price and the sell price is called the “spread” and it is kept by the broker.

Stock Symbols

If you are brand new to investing then take time to understand what you are reading when viewing a Stock Exchange Symbol and learn Stock Market Investing Basics.

Risk Management

Many people start trading stocks and never learn about stock trading risk management. The one’s that do learn, usually learn after they have been trading for a while, not before they start trading.

REITs

A REIT or Real Estate Investment Trust may be the perfect investment vehicle. REITs own, and often operate, real estate but are publicly traded like stock.

Stock Index

By measuring the compilation of similar stocks instead of just one or two stocks, a stock index provides information about that particular market or segment.

Seasonal Indicators

Many stock analysts have identified market trends related to specific times of the year. The success ratios of these trends are often far stronger than most other indicators.