Hey guys, welcome to in penny stock. In these videos, I'm going to be covering penny stock trading jargon, basically the terminology that penny stock traders use, and that you're going to witness a lot on the forums in the chat rooms in my own videos. So I wanted to make sure that you guys are familiar with these terms. They're pretty basic, but for anyone that's new to the stock market, this is going to be very helpful for you. So, you know, let's just get started. All right.

What I'm going to be covering in these videos is a whole series of terminologies. But I broke it up into several parts, so you know, you don't get too overwhelmed. So first, let's start off with more of a general term that applies to finance and the entire stock market in general, and that is the bull market versus the bear market. Okay. And you might have heard these terms thrown around a lot, you know, it's very the market is very bullish today or the market As bearish or the stock is bullish or bearish. Now, basically what that means is whether or not the strongest stock and go I mean, the stock is sorry, the stock is strong and going up, or is it weak and going down in price.

So bull market would be the stock is going up and the demand for it is high, therefore, the price is going up and it shows a gain. A bear market would be the opposite means there's not a lot of buyers, demand is low, more people are selling more people are being conservative. So it's going down. Now, just to give you a little history about why it's called a bull and bear, it's a little interesting. So the way that they the finance people back in the day decided to name these these stocks and this condition, or this market environment and the way that they did is by the way that these animals strike. So for example, the bull with itself When it hits something, it goes from down to up.

And that's how the chart of a bull market looks. Because it goes from down to up, you know, bull markets go up. Whereas a bear when it strikes and when it claws, its target or its prey, it goes from it takes a high stance and strike sit down, you know. So that's how, that's how the chart looks for a bear market. So I don't know why they decided to use those animals and go with that terminology. But, you know, now today, that's how the media covers it.

That's how every person in finance covers it. Bull means strong and long up, bear means we can go on down. Now in the same context, there's the next two terms, which I'm going to cover going long and going short. Okay. If you're long something, that means you're hoping it's going to go up, you know, so in terms of the stock market, if you're going long, that means you're hoping that the price is going to go up. And that's what we do.

That's the strategy that I teach. Okay? What I want you guys to do is buy low sell high. You know, that's, you know, the fundamental principle behind my whole strategy of stock trading. All right, the only thing I help you with is finding out exactly which stocks to go long with, and which stocks are about to go up so that you don't have to worry about losing money. So, you know, if you take the reverse of that going short, is you're hoping the stock goes down, you're hoping that the price goes down and you're buying I mean, you're buying it high and selling low, or the real way that shorting works is you short it, meaning you sell it first, and then you buy it later.

Because when you short it, you're selling shares that you don't actually own. So if you're trading and you short a stock, you basically first do the sell order, and you sell to short, that'll be the market order that you put in and I'll go over what exactly an order is in just a few minutes that you put in This sell, and then you buy back to pay back your you know, quote unquote loan, because you just sold shares that weren't yours that you borrowed from your broker. And now you have to buy a cover. All right, it's called buy to cover and that goes right into the next term that I'm going to go over, which is covering and covering is the second part of a short. So you short to sell and then you buy to cover. Alright, and that's very important because you guys need to make sure that you're aware that if you ever do decide to get involved in shorting, you know, most brokers you have to sell short and then you have to buy to cover and that's very different from just buying it.

Because if you don't specify that you're buying to cover, then you're not the shares that you end up buying aren't going to fulfill your short. So, you know, that might sound complicated for you newbies, you know, don't worry about shorting, but it's it's a more advanced tactic that I don't even that a lot of people use, you know, Tim Sykes, and you know, the Tim Brittani, these other very Pro Stock traders, they do use these methods, but it's not necessarily important to make money in the stock market, you know, it's great to be able to go both ways short and long. And definitely as you get more comfortable with the stock market, I would advise that you go back and look into what shorting is, but for the most part, I only go long. Now, you know, I don't even bother with shorting because I've just, you know, trading is like a skill.

So I guess I focused a lot more on going long. And even though it's better to be, I guess, like, you know, multi skilled, but, in general, I found my specialization is going along, I found that I have a higher percentage of winning trades by going long. So that's a strategy I take but for right now I'm just here to cover the terminology. So, going on to the next one, the next one is putting in an order. Now an order is Basically what happens when you put in a buy or a sell, okay? Because especially in the markets that we're trading in the Pink Sheets, or the OTC BBs or the NASDAQ, a max, New York Stock Exchange, when you're, when you're trading these micro cap or small cap companies, they usually don't have that much.

You know, they don't have extreme volume, like ridiculous volume. But in general, what I mean is, a lot of these markets are slightly inefficient in that they don't execute your buy or sell right away. So if I want to buy 100 shares, it's not like I hit click a button and I get the hundred shares right away. You know, that's a misconception. That's not what happens. What happens is that you place an order, it's like when you go to McDonald's, if you own food, you place an order, right?

And then it goes into a queue. Right? It goes into a waiting list of different orders, and then it gets fulfilled when they bring it to you. So that's the same way as when you put in an order. You Putting in a demand, you know, you want to buy 500 shares of this stock, or you want to sell short 300 shares of this, alright, that's putting in an order. And that is the same thing pretty much as taking a position.

So if you hear anyone say, you know, take, you know, I have a short position or I have a long position or have a short border, that's basically what it is if you take a position in the stock, that means you have an interest in the stock, as in, you are currently holding shares of that stock, whether you're trying to buy it, whether you have already bought it and you're holding on to it, or you're trying to sell it or short it, whatever. But basically, when you take a position that means you have a interest in the stock. Alright, don't worry, you know, I know it's a lot. You know, rewatch the video if you get confused at any part. And a lot of these terms will make more sense as you kind of expose yourself more to the industry and to the forums in the chat rooms.

But I'm almost done with part one. I'm gonna I have a lot more parts of these, because there's a lot of terms to cover, but I'm just starting you guys off slow. So let's get to the second to last terminology which is getting filled. Okay? That is when your order gets completed. So if we go back to the McDonald's analogy, if, you know, if you place an order, that's when you're putting in an order, and you're taking the position.

So what happens then is when the food comes to you, that's when you get filled. All right, that means that your order has been executed it went through, and now what you wanted happened. So if I want 100 shares of FEMA, and you know, my brokerage platform tells me Oh, I put in the order. Wait 30 seconds, get it. That means I just got filled all right. So you're gonna see that you know, all over the place forums, chat rooms, you know, they're talking about Oh, I'm not getting filled or I need to get filled.

Um, so you know, you should definitely know and understand what that is. And finally, the last term for this part one series of pennies Stock trading jargon is scalping. Now, scalping is almost a trading strategy. It's a type of trading style where all you're trying to do is just make a few cents a share, and you're just doing a very fast trading and you're just trying to get a little bit of profit. Usually the way scalpers make money is that they have large money accounts, and they're able to buy many shares of a stock. And so that even if it goes up five cents, or even less scalpers sometimes only go for three cent gains.

You know, if they only get three cents a share, because they had such a large position, they still made a lot of money. So scalping usually ends up happening on very low price stocks, so like, you know, sub penny stocks or stocks under $1. People have varying definitions, I guess, of scalping. Some people even call what I do scalping, I don't think it's scalping because I just wait for pricing. As it goes up, and I ride the wave and, you know, sell my position for profits, but that's basically what scalping is. And it used to be very popular back in the day.

And it's a method that I don't know if you guys have heard of high frequency traders hfts. Guess that's a bonus terminology for this series. Those are basically machines that try to profit or they're not machines. They're automated systems that try to profit off of scalping. So they try to just make very small gains, but because they do so many trades, and because they have such a large volume of stocks, and shares, they make money by doing that. So, hope this video helps.

If there's any specific terms you guys want me to cover, you know, shoot me an email and i'll, I'm putting together more and more I have like four or five of these prepared right now. I'm just going to knock out but again, there's a lot of terms. There's a lot of To decide terminology and stuff that I might not cover. So, again, and as always, if you need any help, just email me at admin at in penny stock calm, and I'll get back to as soon as possible. So, you know i'll see you guys in the next episode.