139+ Trading Terms Explained

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 near-vertical price acceleration where a stock or asset moves sharply higher (or lower) in a short period, its trajectory curving steeply

Patience in trading is the discipline to wait for your exact setup criteria to be met before entering — resisting the urge to force trades i

The former Pattern Day Trader rule — an SEC/FINRA regulation that required retail traders to maintain at least $25,000 in a margin account t

A pin bar (also called a hammer, shooting star, or rejection candle depending on direction) is a single candlestick with a long wick and sma

Position size is the number of shares, contracts, or dollar value you deploy in a single trade — determined by the relationship between your

Pre-market trading is the session that occurs between 4:00 AM and 9:30 AM Eastern, before the regular market opens — it allows traders to re

Profit factor is the ratio of total gross profit to total gross loss across a set of trades — a profit factor above 1.0 means you're profita

A profit target is a predetermined exit price where you plan to close a winning trade and lock in gains — defined before you enter the posit

A pullback is a temporary counter-trend price movement within an established trend — in an uptrend, a pullback is a short-term decline that

A put option gives the buyer the right — but not the obligation — to sell 100 shares of the underlying stock at the strike price before the