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10% Rulea rule used by Madaz which states that a stock needs move 10% over the PMH or previous HOD as part of a criteria to determine whether a stock has confirmed a breakout to qualify for a washout long

A

AirA stock moving up on very small volume

Air PocketA large space/gap between support or resistance levels

Ask/OfferPrice that seller is willing to sell

All Day Fade (ADF)a stock that continues in a downtrend for the entire day

All or noneOrder that has to be executed in the entire position or nothing at all

ATMAt the market. This means a broker-dealer will sell shares on the open market to raise money for a company

B

Baby Shelf Rulea rule that restricts a company to a secondary offering of only 1/3 of their MVPHS (Market Value of Publicly Held Shares) over a 12 month rolling period if their MVPHS over the past 60 calendar days is less than $75 Million

Bag HolderSomeone who is holding a depreciating position at a bad cost basis; comes from the expression “left holding the bag”

BearishHaving a bias that a stock or market will go down

BidPrice that a buyer is willing to pay

#BigMacsany win of $1,000 or less

Block orderBlock orders are large orders placed to buy or sell a security usually over 10,000 shares

Blow upLosing a huge amount of money compared to what you normally make in the market or
potentially losing your entire account/accounts

BreakdownA stock’s price falls below prior support

BreakoutA stock’s price goes above prior resistance

BullishHaving a bias that a stock or market will go up

C

CandlestickA type of chart used to show how much a stock has moved in the timeframe designated. A single candle will show the open, close, low, and high of the specified time the candlestick represents

Chopwhen a stock trades in a not very smooth and often grindy or directionless fashion

Circuit BreakerThe mechanism which controls whether or not the stock gets halted due to volatility reasons

Conference Call (CC)An event hosted by the company to discuss various topics such as major company news or earnings; usually has a major impact on the price action of the stock

ConsolidationWhen a security is neither continuing up or down but is stuck in a limited price range

Clearouta variation of a stop hunt and a common tactic by manipulators to push a stock past a obvious resistance level, often to the next resistance level, to trigger stops and induce a short squeeze thereby filtering out short sellers to create liquidity to sell a long position into

Closing Price/PrintThe final price of the day for an equity

D

Dark poolAn exchange where traders/ institutions are able to anonymously make trades

Dead Cat BounceA temporary recovery in the price of a stock after a very substantial fall. Comes from the idea that “even a dead cat will bounce if it falls from a great height.”

Diamond Handsthe ability to have conviction to hold a difficult position

DilutionCompany issuing new shares of a security or when option holders or employees exercise their options. Outstanding shares increases and shareholders have less percent ownership of a company.

Drinking the Kool Aidfalling for exaggerated or fraudulent claims made by others leading bad trading decision often resulting in losses

E

Easy to borrow (ETB)The ability to short an equity without having to locate shares

EFFECTwhen the SEC acknowledges and confirms a company’s intention to register securities (i.e. an S-3 filing followed by an EFFECT filing means the shelf offering is now live and can be officially implemented)

F

Falling Knifea term used to describe a stock that is going down quickly in an extreme manor, opposite of parabolic.

Fat Fingeran error in entering in the price or number of shares in your order and sometimes actually sending that order out and getting it executed in the open market; could result in unnecessary losses

FillThe amount of shares executed within a trade.

Financial InstitutionEntity that deals with financial transactions such as loaning money or investments, deposits etc.

#FiveFigureClubWhen you finish a trading day with $10,000 in realized profits or more.

FloatShares that are available for the public to trade.

Float LockWhen someone accumulates a large percentage of the float, or free trading shares

Fear of Missing Out (FOMO)anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

First Red Day (FRD)a strategy the involves going short on a stock, usually for a longer hold, on a stock that has had it’s first red day after a multiday run up

G

GapAny space or void in between candles on a chart; usually acts as a strong support/resistance level

Gap FillWhen the price of a securities reaches and covers that space or void (gap)

GrindingStock moving in a slow tight range either up or down.

H

Halt (T1)Trading suspension of a security due to news pending.

Halt (T2)News has been disseminated on the security that was previous marked as a T1 halt but remains halted.

Halt (T3)Security previous marked as a T2 halt now has a definitive time for resumption.

Halt (T12)Trading suspension of a security due to request for more info, security technically has no timetable for resumption and theoretically could halt indefinitely.

Halt BandsThe lower and upper bands in which the stock will halt if trading were to exceed them and persist for more than 15 seconds. Also known as LULD.

Hard to Borrow (HTB)This means you will have to locate shares to be able to short a specific security.

HODLa common misspelling of the word HOLD meaning to hold onto a position as long as you possibly can, popular in the crypto or reddit community; also can stand for Hold On for Dear Life

I

Iceberg Ordersa very large order that is divided into a into smaller orders, typically used in tandem with an algo in order to keep the full size of the position hidden to minimize market influence as it’s being executed; often employed by big institutions

Infinite dumpA dramatic and very sudden drop in the price of a stock, usually characterized by a very large red candle blowing through multiple support levels with little to no bounces.

Initial Public Offering (IPO)Shares of a company are offered for sale to the public.

Institutional InvestorCompany that uses money to purchase securities and other assets to invest in.

IOInstitutional Ownership; usually the higher the number (>40%) the more manipulated the stock may be.

InvestTo put money into something that may offer the opportunity to profit from.

K

Ketchup PacketsWhen you make next to nothing in the trading day

#KISSKeep It Simple, Stupid; Madaz’s no non-sense approach to trading which involves keeping things basic and simple.

L

Level 2the order book of all the live and unexecuted bids and asks; also known as the Market Depth or Montage on DAS Trader Pro

Limit OrderSpecified price to buy or sell a security.

Line in the Sandsee Over/Under (o/u)

Liquidity Eventa dramatic move in the price action of a stock that allows the insiders/manipulators to liquidate their shares into, such as News or a Stop Hunt

Lose Your ShirtTaking a big loss; comes from the expression, lose the shirt off one’s back

LullThe middle portion of the day (typically between the hours of 11AM – 2PM EST) when volume dries up and the edge is usually significantly lower.

M

Manipulatorthe person or persons responsible for controlling or manipulating the price action of a stock to push an agenda, typically to seek or manufacture liquidity to sell shares.

MarginBorrowing money from a broker to trade larger size than you would be able to on your accounts cash value.

Margin CallWhen the broker closes your position because you are red on your position beyond their risk threshold

Market Capitalization (Market Cap)Signifies the value of a company in dollars by its outstanding shares.

Market Maker (MM)Bank or brokerage that provides liquidity for bids and offers.

Market OrderBuy or sell to be executed at current prices of a given security.

Market TuitionInevitable trading losses that lead to valuable lessons which ultimately help us progress to become better traders.

Microshelfwhen a stock gets temporarily propped slightly over a key resistance or breakout level in order to allow the manipulator to unload shares into short covers and/or long chasers; once the microshelf is complete the bid is usually pulled and the stock’s price typically drops dramatically in rapid fashion.

MVPHSMarket Value of Publicly Held Shares

N

#NoBlowUpChallengeA commitment to trade responsibly without any major drawdowns.

O

Odd lotOrder that consists of less than 100 shares of stock.

OfferingWhen a company wants to raise capital and shares of the equity are sold. This also increases the float.

OrderA decision to buy or sell a stock.

Outstanding sharesAmount of shares held by its shareholders.

Over/Under (o/u)The point of inflection of terms of price where sentiments and biases change from bullish to bearish or bearish to bullish; also known as the Line in the Sand.

P

ParabolicExtreme and rapid rise in a stocks price compared to prior price action, opposite of falling knife.

Panic PopA sudden and dramatic spike in the price of a stock.

Panic Pop ShortThe immediate reversal following the sudden and dramatic spike in the price of a stock.

Pikera person who exits a position too early thereby leaving [often a lot] of money on the table; popularized in the 2000 financial crime drama film, Boiler Room.

Pocket Changesee Wallet Padders.

PositionWhen someone has shares long or short of a stock.

PMHPremarket Highs

POS (Piece of Shit)a stock that is untradable or behaves in such an unpredictable or erratic manner that it makes it difficult to execute any clean or easy trades on it, could also be used to describe a stock or company that consistently performs very poorly on a regular basis; also known as a Turd

Power Hourthe final hour of the trading day (3PM-4PM EST)

PPSPrice Per Share

Propa large buy order sitting on the bid, which may or may not be a spoof, that is holding up the price of the security; often used as part of the two-word, compound word: Bid Prop

Q

Quadruple Witchingthe date on which derivatives of stock index futures, stock index options, stock options, and individual stock futures expire simultaneously often resulting in unusually high volatility than normal

QuotePrice at which a security is trading.

R

RangeThe high and low prices for a stock during a specific period of time.

Range boundWhen the price of a security is stuck in a tight range.

Real timeThe actual time something is happening, in trading it is current prices without any delay.

Recycling [Shares]The process of predetermining a max sized position and splitting it up into various entries to scale into a position provided that you have conviction in having the correct direction of the stock and having the trade eventually go in your favor; once you are at max position size, you must stop out or recycle some of the shares so you are able to readd at the next support/resistance level without exceeding the predetermined max position size.

ResistanceA price level where supply exceeds demand in which a stock has a hard time going above.

Reverse Split (R/S) When a company decreases the amount of shares in the market and proportionally increases the price of the stock such that the valuation or market capitalization of the company does not change in the process.

RiggerAnother name for manipulator.

RouteAn order directed to a specific market maker.

Rug PullWhen the bid support or bid prop gets pulled or yanked resulting in a dramatic drop in the price of a stock

S

S/RSupport/Resistance

ScalpQuick trade that takes advantage of small market fluctuations.

ShareOwnership certificates of a company.

Short SqueezeA quick increase in stocks price when demand outweighs supply. Shorts scramble to cover their positions driving up the stocks price with their buying.

Shelf A provision that allows an entity to sell parts of the security over a period of time; a common way for a company to file for a shelf offering is to submit a form S-1 or S-3

Short Selling a security that one doesn’t own in hopes to buy back a lower price for profit. Buying back higher results in a loss.

SizeThe amount of shares you are trying to fill or the shares you have in a current position.

Soaka large buy order sitting on the bid or sell order sitting on the ask, which may or may not be hidden, that is absorbing all the transactions going through at that specific price

SpikeQuick panic to the upside.

Squeeze From HellA huge spike in the stock usually out of nowhere characterized by a very large green candle blowing through multiple resistance levels like they don’t even exist. The opposite of an infinite dump.

Short Sale Restriction (SSR)a restriction on short sales that is triggered when a security hits -10% intraday. Short sales are now only allowed to open a position on an uptick in the price of the security. Carries over to the next trading as well on the security.

StockOwnership in a company signified by a share.

Stop HuntWhen a bunch of stop orders left open get taken out in a fake breakout or fake breakdown move in one swoop; usually characterized by a wick back candle.

Stop-Limit OrderLimit order to buy or sell a stock automatically at limit price or better when triggered.

SupportA price level where demand exceeds supply in which a stock has a hard time going below.

Swing tradeA trade that typically is held overnight and tries to capture a longer term move in a stock.

T

Tapethe live transactions of shares on a security that are going though; also known as the Time and Sales

ThinA stock that has a relatively small bid or offer and could have a wide spread.

TradeBuy or sell.

#TraderNapa preventive measure taken by Madaz, where he takes a nap, as a means to avoid trading during hours where there is no edge, typically during the hours of 11AM-2PM EST.

Trading platformSoftware used to execute trades.

TrendDirection in which a security is moving.

TutesInstitutions; also see Institutional Ownership (IO %)

V

VWAPVolume Weighted Average Price, a popular indicator. See this blog for more info about VWAP.

W

Walla large sell order sitting on the offer, which may or may not be a spoof, that is holding down the price of the security; often used as part of the two-word, compound word: Ask Wall

Wallet PaddersAny win of $500 or less.

WarrantA derivative that gives the option to buy or sell a security and is dilutive.

WashoutSudden and dramatic drop in the price of a stock.

Washout LongThe immediate bounce that occurs after a sudden and dramatic drop in the price of a stock.

Wick BackA candle with a very large wick; could be to the upside or downside, usually occurs on a fake breakout or breakdown.