Increase Your Stock Market Vocabulary – Increase Your Profits
November 27th, 2009 | 
Author: Increase Your Stock Market Vocabulary – Increase Your Profits
You should increase your stock market vocabulary because it can help to increase the profits you make in your stock market dealings. “How?” I hear you ask. Well the simple fact is that any investor with a good stock market vocabulary is someone who has a good grasp of all the various options open to him or her in the market.
Simply by being able to understand the jargon of stock and shares you will feel more knowledgeable. And by having greater knowledge of the marketplace you, like any other investor, will have greater confidence in your investment decision making. Having increased confidence in any activity naturally leads to a better overall performance.
Let us look at an example of how an increased stock market vocabulary can help you gain that greater confidence. Say for example you didn’t understand the language of traded options do you think you would feel safe and confident investing in them? It’s not very likely that you would is it? If you couldn’t understand the difference between a put and a call you would be foolhardy if you placed your hard earned money into an investment using them.
So how can you do increase your investment vocabulary? In exactly the same way you would increase your vocabulary in any other field, by studying it. It just takes patience and commitment. You could get started by buying yourself a specialist stock market dictionary and looking up any word or phrase that you come across which doesn’t make sense to you.
Nowadays there is a new style of stock market dictionary that instead of listing words alphabetically lists entries in related groups. This makes understanding the jargon that much easier. For example if you are new to using technical analysis in your decision making process you could turn to that section to discover the meaning of any phrases you don’t recognize. And with such gems as long legged doji, “rickshaw man”, hammers and gravestones just in candlestick charts alone you could probably do with all the help you can get!
A quick word of caution here, if you decide to increase your vocabulary by reading up on different terms online make certain to cross reference your sources. That way you can ensure that the definition you find is correct.
Whichever way you choose to do it you will definitely benefit from increasing your stock market vocabulary.
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Posted in Personal Finance
Wow, this is a great guide!
It really opened my eyes.
That actually is a really good advice,in all areas actually.
How big can a specialized dictionary be?
Increasing your Forex market vocabulary is an interesting measure to keep yourself updated with the new trading technologies and system. The first step to enter in to the market is to get acquainted with the Forex lingo so that you can easily understand the fundamental of the market and the terms of buying and selling operations.
Hey, this is not a bad piece of advice. Shows how much psychology is involved in the area too. Surely it must apply to other areas than stock market as well.
There is a lot to be learned, I constantly find myself reading trading blogs and having google some of the vocabulary used. Learning new terms always opens up new trading strategies and techniques, good advice:)
its so nice to learn form this blog.
he first step to enter in to the market is to get acquainted with the Forex lingo so that you can easily understand the fundamental of the market.
I’m pretty pleased with how I’m come on in the stock market vocabulary. It wasn’t that long ago that I struggled to understand the difference between and bear and a bull market. Now I’m learning about candlesticks and all sorts of other things.
I plan to increase my vocab not just on stock markets but also on other ways to make money online and run home businesses with websites. There is so much I need to know. I don’t have much time but I will make time for it.
Great post!Your article would be useful for my future prospects.Thanks for it.
I have made–and lost–a lot of money in the stock market. I understood the terms in each event.
Understanding the language of stocks is a good starting point, but please know that there is much more you need to learn in order to trade successfully.
To take consistent profits out of the market, you have to really love trading. You have to love it because if you don’t you won’t follow the market as attentively as you must in order to execute winning trades.
I think this post applies to all areas of business, when I got into the insurance business there was a ton of vocabulary I had to learn just to be able to compete with the other places. Great advice, thanks!
yes, you need to have a solid vocabulary when trading stocks, it also helps to have a list of sec filings and whats in them. thanks and bookmarked
So true if we increase our stock market vocabulary definitely there would be huge benefit.Thanks for sharing your useful point of view.Eagerly waiting for your next article.
I was not aware with it before,Now i understand.Your post is really great and useful.Your point of view is really adorable that i must appreciate for it.
I don’t know why but the browser I use can’t display that page accurately… It looks like a large part of it is not showing and the layout of the post does not look right. Are you sure this post has been set up for Safari?
Finally some one that understand the market, Thanks You
thanks for the knowledge. i feel smarter about the stock market already.
thanks for your share,i had click the adsense.hope surprise next time.
This is a good article for newbies in the stock market and you have concluded it quite well…
I like your blog and useful to me indeed.I am going to consider all the points you have mentioned for generating more profits.So thanks for such good sharing.