Commen Trading Glossary..!!!!

1. Bar Chart:
   A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates the highest price a security traded at during the day, and the bottom represents the lowest price. The closing price is displayed on the right side of the bar, and the opening price is shown on the left side of the bar. A single bar like the one below represents one day of trading.
2. Average Daily Trading Volume - ADTV:
   The average amount of individual securities traded in a day or over a specified amount of time. Trading activity relates to the liquidity of a security; therefore, when average daily trading volume is high, the stock can be easily traded and has high liquidity. As a result, average daily trading volume can have an effect on the price of the security. If trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it.
3. Breakout:
   A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying asset when the price breaks above a level of resistance and sell when it breaks below support.
4. Technical Analysis:
   Technical analysts believe that the historical performance of stocks and markets are indications of future performance. In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store.
5. Fundamental Analysis:
   Fundamental analysis is about using real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security. For example, an investor can perform fundamental analysis on a bond's value by looking at economic factors, such as interest rates and the overall state of the economy, and information about the bond issuer, such as potential changes in credit ratings. For assessing stocks, this method uses revenues, earnings, future growth, return on equity, profit margins and other data to determine a company's underlying value and potential for future growth. In terms of stocks, fundamental analysis focuses on the financial statements of a the company being evaluated.One of the most famous and successful users of fundamental analysis is the Oracle of Omaha, Warren Buffett, who has been well known for successfully employing fundamental analysis to pick securities. His abilities have turned him into a billionaire.
6. Stock Idea:
   The main thing to remember when you hear a stock idea is to approach it as objectively as possible and to look at the positives and negatives along with the potential risks. Too often, an investor will take a position on a security based on what someone else said, rather than performing his or her own analysis of the company.There is no substitute for doing your own homework on a particular firm, and you should never substitute someone else's judgment for your own.
7. Block Trade:
   An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order". In general, 10,000 shares of stock (not including penny stocks) or $200,000 worth of bonds would be considered a block trade.
8. Blue Chip:
   A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue-chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth. The name "blue chip" came about because in the game of poker the blue chips have the highest value. Blue-chip stock is seen as a less volatile investment than owning shares in companies without blue-chip status because blue chips have an institutional status in the economy. The stock price of a blue chip usually closely follows the S&P 500.
9. Large Cap (Big Cap):
   An abbreviation for the term "large market capitalization". Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share. The expression "large cap" is used by the investment community as an indicator of a company's size. For example, a large-cap stock would be from a company with a market-capitalization dollar value of over $10 billion.
10. Mid Cap:
    A company with a market capitalization between $2 and $10 billion, which is calculated by multiplying the number of a company''''s shares outstanding by its stock price. Mid cap is an abbreviation for the term "middle capitalizationAs the name implies, a mid cap company is in the middle of the pack between large cap and small cap companies. Keep in mind that classifications such as large cap, mid cap and small cap are only approximations that change over time. Also, the exact definition of these terms can vary among the various participants in the investment business.
11. Small Cap:
    Refers to stocks with a relatively small market capitalization. The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $300 million and $2 billion. One of the biggest advantages of investing in small-cap stocks is the opportunity to beat institutional investors. Because mutual funds have restrictions that limit them from buying large portions of any one issuer's outstanding shares, some mutual funds would not be able to give the small cap a meaningful position in the fund. To overcome these limitations, the fund would usually have to file with the SEC, which means tipping its hand and inflating the previously attractive price. Keep in mind that classifications such as "large cap" or "small cap" are only approximations that change over time. Also, the exact definition can vary between brokerage houses.
12. Shorting: Selling of a stock that a person doesn't own. They hope to profit by buying the stock back at a lower price and returning it. Also called "shorting." For example, if you short 30 shares of XYZ stock at Rs30/share and the stock falls to Rs20/share, you would have made Rs300 in profit.
13. Long (or Long Position):
    The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.
14. Liquidity:
    The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. The ability to convert an asset to cash quickly. Also known as "marketability". It is safer to invest in liquid assets than illiquid ones because it is easier for you to get your money out of the investment. Examples of assets that are easily converted into cash include blue chip and money market securities.
15. Buy back:
    The purchase by a listed company of its own shares either in the open market or by tender offers. Companies do it for five reasons 1) To increase the share price 2) To rationalise the capital structure - the company believes it can sustain a higher debt-equity ratio 3) To substitute the dividend payouts with share repurchases (because capital gains may be taxed at lower rate than dividend income) 4) To prevent the dilution of earnings caused, for example, by the issue of new shares to meet the exercise of stock option grants. 5) To deploy excess cash flow and return it to shareholders.
16. Stop Loss:
    Day traders use several different orders to enter and exit their trades, and one of these orders is a stop loss order. A stop loss is an exit order that is used to limit the amount of loss that a trader will take on a trade, if the trade goes against them. For example, if a trader is in a long trade, they want the price to move upwards, so they will use a stop loss to exit the trade, if the price moves downwards too far.