Understanding Trader Talk

For those not familiar with this type of lingo, Trader Talk is essentially just a re-telling of the trade lingo used by the financial industry. It s a very specialized language common amongst all investment banks and, in addition, for regular individual investors, being skilled in this trader talk can be worth the effort required. This is especially true if you are looking to make an investment in the commodities market or other similar investments. Trader Talk is basically the vernacular of financial professionals who are looking to communicate their ideas in a way that is understood by laymen and women and who are also able to provide them with confidence in the market.

If you are going to trade then you need to know what things to talk about, how to talk about it and how other people will understand your message. In addition, you need to be able to explain what you are doing, why you are doing it and how the market will respond to your efforts in a clear and concise manner. Trader Talk essentially covers the language of professional speculators who have years of experience in making sense of the complex markets out there and making predictions. These are complex markets which can take several hours even days to understand, so having someone explain it to you and explaining all the various aspects in layman’s language can be a great help to you.

So, rather than just sitting there and making random decisions about where you are going to invest, try to gather some knowledge and start talking to a trader. If you do not have the time or the inclination to do this yourself, then seek out a brokerage firm that has a number of traders on its books. Often these firms have a trader hotline that will be happy to speak to you and explain all the ins and outs of the market to you in as clear and simple a manner as possible. Talking to someone who is a day trader or a swing trader can often give you an idea of how the markets work and can help you to make better choices. The best part about these professionals is that they have been there, done that, and know what you are getting yourself into.