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If you ever jump into a Discord server, the owners may be throwing some lingo or day trading vocabulary terms to save them a few seconds so you can be aware of what’s happening quickly.
Otherwise it can take a long time to type everything out, and you as the signal follower may be to late to react.
So here are 36 day trading terms that you should know when joining a Discord server.
Stop loss means a limit loss. For example, how much money you’re willing to lose on a given trade or account.
FOMO means fear of missing out.
TP is short for “take profits”.
PT is short for price target.
BE is short for breakeven on your trade.
SL is short for stop loss.
When a day trader announces a trade that may be YOLO or lotto, they mean the trade is a gamble.
This is when a trade is going to be bought one day and sold on another day.
A day trade is when a position is bought one day, and closed the same day it was bought.
HOD is short for high of day. High of day (HOD) references the highest point of a stock for the day.
LOD is short for low of day. Low of day (LOD) references the lowest point of a stock for the day.
0DTE is short for zero-day expiration. These are option contracts that expire the same day they’re bought.
When a day trader says the term “light,” they refer to a small position size based on a portfolio.
Power hour in day trading means the last hour of the market.
OTM is short for out of the money contracts. This is when you get a option contract strike price that is below the underlying price of the stock for calls, or above the underlying price of the stock for puts.
ITM is short for in the money contracts. This is when you get a option contract strike price that is above the underlying price of the stock for calls, or below the underlying price of the stock for puts.
Premium means the cost of an option contract.
Option contracts that expire in the same week that the option contracts are bought.
ATH means all time high. This can refer to a contract, or price of a stock.
EOD means end of day of the stock market.
AH is short for after hours.
PM is short for premarket hours.
TA is short for technical analysis.
DD is short for due diligence.
S/R is short for support and resistance.
Demand zone is another form of saying support zone.
Supply zone is another form of saying resistance zone.
BTO is short for buy to open. This another form of saying to buying a new position.
STC is short for sell to close. This another form of saying to close a position.
Trim or trimming in day trading means to close a small portion of your position.
Averaging down means to reduce the cost of your average on a position size of stock or option contracts.
Avg cost is short for average cost of an option contract or stock.
BP is short for buying power. This will refer to traders who use a cash account.
Don’t chase means to not go after a trade that is rising more than 15% of the original trade callout.
Small port refers to a small account in day trading.
Large port refers to a day traders heavy account in day trading.