139+ Trading Terms Explained

A bag holder is a trader stuck in a losing position that has moved so far against them — usually because they refused to cut the loss — that

Chop is a market condition where price oscillates back and forth in a tight, directionless range with no follow-through in either direction

Diamond hands is internet trading slang for holding a position through severe volatility and losses without selling — originally used to pra

A dip buy is entering a long position after price has pulled back from a recent high — the goal is getting a better entry price in a stock t

A fakeout is when price briefly breaks through a key level — appearing to confirm a breakout or breakdown — but immediately reverses, trappi

HOD stands for High of Day — the highest price a stock has reached in the current regular trading session, often used as a key breakout leve

LOD stands for Low of Day — the lowest price a stock has traded at during the current regular session, and a critical reference point for su

Paper hands is trading slang for exiting a position at the first sign of weakness or minor adverse movement — the opposite of diamond hands

A rug pull is when insiders, promoters, or large holders of a low-float stock or cryptocurrency suddenly sell all of their holdings into ret

A squeeze (short squeeze) occurs when a stock that is heavily shorted rises sharply, forcing short sellers to buy back shares to cover their