For those unfamiliar with the term, ” Trader Talk” describes an informal interchange of stock-market related information between traders who are either members of online trading communities or brokers who specialize in advising individual traders. For those not acquainted with this type of trading chat, essentially, the chat described above is almost incomprehensible and even a bit intimidating. But for the unenlightened investor, being fluent in this trader talk is worth the effort and simply, even for the most uninitiated, becoming skilled in this trader talk is worth the effort. This is because trading is a process of assessing the available data and making informed decisions about the purchase and sale of stocks, options, futures and currencies.
The process of trading can be simplified into three phases: Market Definition, Market Research, and Trading. Market definition refers to the evaluation of the current state of the underlying shares or securities in the stock, currency or index. Market research is concerned with investigating the financial health of the company. This phase involves understanding current company news and events, analyzing company balance sheets, and reviewing investment marketing brochures and ads. Finally, trading occurs when the investor sells or buys the securities.
Trader talk can be fun and helpful for an investor or trader who is just beginning or specializes in their own particular investment markets. When used correctly, trader talk can be exciting, informative, and profitable. However, anyone can talk. As always, you are the best judge of how much you can learn by listening and speaking to the people you know. Take time to learn all that you can about this great business form and you will be on your way to profitable investing success in no time at all!