When it comes to trading lingo, it’s a jungle out there, with trading expressions that can be difficult to understand. We’ve rounded up the usual suspects and tamed them into short definitions so you can speculate with confidence.
First and foremost, let's say a big thanks to our amazing mooers to contribute so many good ideas by joining the topic #What lingos did you learn along the way? Thank you all!
Please leave a thumbs-up or share it if you find this useful! Basic Terms Stonk: an intentional misspelling of stock
YOLO - You only live once and refers to people who invest heavily in a certain stock
HODL - Slang for "hold your position" and resist the urge to sell your holdings.
Hold the Line - A battle cry for users during volatility in the markets. When stocks favored by the forum began to drop, appeals to “hold the line” became common.
Falling knife - Refers to a sharp drop, which is commonly used in phrases like, "don't try to catch a falling knife," which can be translated to mean, "wait for the price to bottom out before buying it."
Hanging man - is a bearish candlestick pattern that forms at the end of an uptrend and warns of lower prices to come
Inverted hammer - a type of candlestick pattern found after a downtrend and is usually taken to be a trend-reversal signal
Gay Bear - It refers to people who WANT stocks to go down, and are seeking to profit off of the position, as “gay bears.” They are denoted by a picture of an LBGT flag and a bear emoji, or sometimes a strange video clip of dancing animated bears
I Eat Crayons - More subversive self-deprecation, often used by members of the group to imply that their foolhardy bets, and possible resulting losses, should not be mistaken for formal investment expertise
Paytience - Used as a reminder that patience generally pays off
Restricted Shares - Shares only available to company insiders
Tenbanger - An investment that rises to 10* its purchase price (or has the potential to do so)
Odd Lot - A trade where the position size is less than the standard lot
Babysitting - Holding onto a trade, despite losses, in the hope of breaking even or making a profit if the market turns around
Dark Pools - Liquidity that exists between institutions on private exchanges, and is not available to the public
Dip - The rapid decrease in the value of a coin or stock, or an entire market
Fiat - Currency issued by the government, e.g. US dollar
Circuit breakers - temporary measures that halt trading to curb panic-selling on stock exchanges
Bulls - an upward trending market, a cycle of growth; the optimists who often go long
Bears - a depressed and/or downward-trending market; the bearish trader or investor is pessimistic
Stags - a short-term speculator, usually refers to a day trader, the opportunists
Wolves - the unethical stock market wunderkinds famous for unscrupulous success
Rabbits - the scalpers who buy shares for very short periods of time, ranging from a couple of weeks to intra-day buying and selling
Turtles - the long-term trader, trend-following trader
Pigs - the slaughtered, high-risk investors who is greedy, having forgotten their original investment strategy to focus on securing unrealistic future gains.
Ostrich - the ignorant investors who tend to ignore the bad news and bury their heads in the figurative sand.
Chicken - the fearful investors that are highly risk-averse and are really afraid to lose any amount. They are driven with so much fear that it sometimes overrides their common sense in making sound investment decisions.
Sheep - the herd-follower who lacks discipline and whose trading strategy is unfocused and predicated on the suggestions of others.
Whales - Whales are movers and shakers (whether a trust, bank or even an individual) with such a lot of capital that their buys and sells make waves in the market.
Bearwhale - Someone with a large position in a particular coin but with a 'bearish' vision.
Bullwhale - Someone with a large position in a particular coin but with a 'bullish' vision.
Apes - the meme, favorite strategy: HODL, favorite destination: moon /Moon and favorite mode of transport: rocket
Black swans - they look beautiful in white. But adding the word “black” – it killed it which resulting in a meaning of a completely unforeseen and unexpected stance
Grey rhinos - preparing for highly probable events that potentially could have a high impact. They are often neglected, are not random surprises, but occur after a series of warnings and visible evidence.
Unicorns - startups that have come to be valued at $1 billion or more
Hawks and doves - the central bank’s decisions regarding interest rates. ‘Hawkish’ are those in favour of raising the interest rate and a tighter monetary policy to curb inflation. A meeker ‘dove’ stance is of the opinion that the central bank should keep interest rates low or flat.
Popular slang to define market/ investor moves Tanking - When a market falls suddenly.
Short squeeze - When traders who hold short positions are forced to close their trades due to the rapid price increase.
Long squeeze - the opposite of short squeeze when a market drops significantly and unexpectedly very quickly
Jigged out - when the market turns against a general trend, forcing traders to close their position.
Flip - Buying and selling for a quick profit, usually intraday.
Gamma squeeze - It occurs when the price of a stock surges in a short period of time, often associated with the purchase of call options to drive up the price.
The dead cat bounce - the last gap rallying movement of a ‘dead market, when a stock’s price rises from depression briefly, only to fall again.
Crunching - A market's price falling rapidly and going beyond a presumed support level.
Sell-off (Dumping) - When an abnormal amount of traders are selling a position.
Buy the dip - Place the trade when the price is down, on the assumption that it will rebound soon enough.
Pump and dump - A group of investors colluded and bought the same stock at the same time to momentarily drive up the price of the stock and to sell it a short time later to turn them into a profit. Thereafter the price will drop back to the normal level.
Bottom fishing - Buying or going long on securities after their prices have fallen considerably, expecting they will rise in time.
Ask slapping - Buying shares at the ask price.
Choppy - High volatility within a narrow range.
WSB Special To the moon - a rallying cry for certain stocks
ATH - all time high
Apes together strong - It's a clique or expression of solidarity with other common investors going for the same goal like buying AMC to the moon.
Paper hands - It means the investor is quick ot sell a stock at the first sign of trouble.
Diamond hands - Continuing to hold a stock despite losses, adversity, and volatility, confident that the price will increase.
DFV - Refers to the aforementioned Reddit user DeepF--kingValue, who posted about making call options for GameStop stock (NYSE:GME) and became the “granddaddy” of the GME stock surge
ROARING KITTY - The social media pseudonym of Keith Gill, a financial adviser in Massachusetts whose Reddit posts and YouTube video streams helped drive interest in GameStop's stock.
Bagholder - Someone who holds on to a coin or stock that has dropped in price and hopes it increases to the price where they originally purchased.
TENDIES - Shorthand for chicken tenders, which WSB uses as slang for profits on a trade.
Acronym DD - Due diligence
DYODD- Do you own due diligence
FOMO - Fear of missing out
FUD - Fear, Uncertainty, and Doubt
MOASS - mother of all short squeezes
DYOR - Do your own research
PAD - Pump and Dump
NHOD - New High Of Day
OTM - Out of the money
ITM - In the money
FTD - Fail to deliver
HFT - High frequency trading
AMA - Ask me Anything
ATL - All Time Low, when coins or stock breaks its previous lowest price record.
BTD - Buy the dip
DCA - Dollar-cost averaging, an investment technique where a fixed sum of money is used to invest in coin or stocks.
DCB - Dead Cat Bounce, a brief price recovery before a major crash.
FA - Fundamental Analysis, a method to evaluate an investment by looking at its intrinsic value.
ETF - Exchange-Traded-Fund, a tradable product that follows the price of an underlying asset.
JOMO - Joy of Missing Out, refers to someone who is happy for not taking a certain position as the price keep on dropping.
Lambo - Abbreviation of Lamborghini, used often when the price is going to rise sharply so that one can pay for such car with the winnings.
LEAPS - long-term equity anticipation security, basically an options that is has a very long expiry (>=1 year).
PMCC - Poor man covered call. Using a deep in the money call LEAPS to cover the call option instead of the underlying stock (generally lower upfront payment)
Crypto Special 2FA (2 Factor Authentication) - A double layer security used to provide double protection to user account.
51% Attack - A possible attack on blockchain by a group of miners who hold more than 50% of the hash rate.
Airdrop - A way to distribute coins to end users for free or exchange for performing a small task.
Altcoin - Any cryptocurrency that is not bitcoin.
ICO - Initial Coin Offering. Issued to be exchanged on launch. Similar to IPO's.
Paper Wallet - The public and private keys of the cryptocurrency wallet held on a piece of paper.
Gas - Fee paid to miners for executing a transaction on the Ethereum blockchain.
POW - Proof of work, a requirement defined by computer calculation.
REKT - Used in the crypto community to indicate huge losses.
SAFU - A term used in cryptocurrency world to mean safe.
Wholecoiner - Someone who owns 1 full Bitcoin
Nocoiner - A person who does not possess any cryptocurrency.
OCD - Obsessive Cryptocurrency Disorder, for people who cannot stop monitoring their cryptocurrency daily.
Hot Wallet - Storing of crypto coins online, connected to the Internet.
Cold Wallet - Storing of crypto coins offline.
DAO - Decentralized Autonomous Organization, whereby it run by itself without any human interventions.
DEX - Decentralized Exchange, where people can do trading without the need of a middleman.
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