Trader Talk 101
If you have been in the online investment business for any length of time you have probably had the opportunity to engage in a bit of Trader Talk. For those not familiar with this style of trading, the conversation outlined above is almost incomprehensible and even a bit intimidating. But for the uninitiated, becoming adept at this trader talk is worth the time spent understanding it. The idea behind Trader Talk is simple enough to grasp; it involves investors talking amongst one another about investments that are currently undergoing trading.
The primary goal is to discuss an investment, its pros and cons, and provide a general background on the subject. At the end of the conversation, there might be some useful advice given regarding how to take advantage of a particular investment and where to find related investments. In some cases, depending on the tone and topic of the Trader Talk session, it might even encourage other investors to seek out similar investments. However, if the investment is considered risky, the investor might offer some general guidance as to how to best protect oneself against that risk while still making a profit on the transaction.
It’s important to understand that Trader Talk isn’t a replacement for extensive research. You should always seek out information from your own personal experience as well as that of others, but if you have confidence that an investment will do well regardless of what investor’s perspective you form, it is okay to speak your mind without worrying that others will think you are over-confident. Similarly, if you are unsure as to whether or not a particular investment will perform as poorly as it is supposed to perform, offering general advice is perfectly acceptable. The important thing is to remember that Trader Talk is meant to be fun and informative, and if anyone asks you specific questions regarding your specific investment, it should only serve to make you more knowledgeable about the subject.