Trader Talk – What is it Really?
For those unfamiliar with this type of trading talk, sometimes called ‘computer jargon’, it s quite literally incomprehensible and in some cases a bit intimidating. But in reality, it is a very common language used by all trading desks everywhere and, therefore, for the average investor, becoming skilled in this trader lingo is worth the effort. I am not a professional trader, but I have traded stocks using the many terms and lingo that I have come across and, from my experience, it is a very useful and intuitive tool. Of course, it does take some time to learn and become fluent in it.
Some people think it might be better to leave it alone until you are ready to learn it, but there are some good books on the market and online which cover these topics quite comprehensively. In addition, there are many glossaries of popular trading terms that can be very useful to new or inexperienced traders. The other useful tool that you can use is an online newsletter from one of the many discount brokers that will keep you informed about any new developments in the markets.
There is no doubt that there are times when it is appropriate to use the language of the market place in order to make decisions and that is where the term ” Trader Talk” comes into play. Many traders talk to each other as if they were discussing a technical topic. When the topic turns to stocks, then you get into the nitty gritty and sometimes difficult subject matter of buying, selling and how much you should buy or sell at what time. So, it is very useful indeed for a trader to be able to engage in the sorts of discussions that pertain to the stock market and using a bit of Trader Talk to help clarify any points that you may get stuck on. In the end, it makes trading a lot more fun and a bit less of a headache!