20+ Common Terminologies Every Trader Should Know.

Trading is hard, and so are trying to decipher the numerous slangs you may come across on our Discord server each day. Hopefully, after reading this, you’d learn to use and acknowledge some of these commonly used terms.

Trading Platforms:

RH – Robinhood
WB – Webull
TOS – thinkorswim

Conversational Usage:

ER – Earnings Report

A company’s report on their earnings for the previous quarter along with guidance for where they see the company going in the near future. There are associated plays with ER, but this is not advised in 95% of cases.

DD – Due Diligence

Good plays are the result of due diligence and execution. Due diligence is comprehensive research on the fundamentals and technicals of an underlying security to establish or uncover an opportunity or lack thereof.

HOD/LOD – High of Day / Low of Day

High of Day is the highest price achieved for that specific day (NHOD is New High of Day). Low of Day is the lowest price achieved for that specific day (NLOD is New Low of Day).

EOD/EOW – End of Day / End of Week

End of Day is the end of the trading day in financial markets, the point when trading ceases. End of Week is the end of the trading week in financial markets, the point when trading ceases.

SL – Stop Loss

An order type that triggers based on a specific price you’ve determined to exit a position after it reaches a price or target – this is used to limit your losses and the recommended best practice is 30% of your original purchase price.

PT – Price Target

A price target should be a predefined goal that you expect security to reach (equity) or during a specified time (options). These can be determined by looking at previous highs and resistances, supports, or examining basic fundamentals.

Infrequently Used:

  • PM – Pre-Market
    • Before-market open 4 am – 9:30 am EST/EDT
  • AH – After-Hours
    • After-market close 4 pm – 8 pm EST/EDT
  • MM – Market Maker
  • RR – Risk to Reward Ratio
  • SR – Support / Resistance
  • ITM – In the Money
  • BTO – Buy to Open
  • BTC – Buy to Close
  • STO – Sell to Open
  • STC – Sell to Close

Other Non-Official Terms:

  • LKS – Low Key Stonks
    • Not to be confused with the $LKS ticker
  • FD – Lottos*
    • A WallStreetBets term known as a fa**ots delight
  • BTD – Buy the Dip
  • BTFD – Buy the fuckin’ Dip
  • Print – Making money
  • Tendies – Money
  • Gap up – Stock moving up
  • Gap down – Stock moving down
  • FOMO – Fear of missing out
  • B/O – Break Out

* Lottos are essentially high-risk high-reward plays. They often involve speculation, cheap entry, and near-term expiry. Not recommended to follow these plays if you are a newbie and can’t afford to lose.

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