Trading and and data analytic terminlogies that I came across when developing this program.
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Dataframe: Two-dimentional grouping of data of any type. Can be compares to Excel sheet or SQL data tables
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Window function: Window functions enable to perform calculations against partitions(subgroups or sections) of result, typically a table
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Leg: This is a single position taken in trading. There can be multi-leg in option trading for long call, short call; short put and long put.
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Orders
- Market Order: This is an order to buy and sell security immediately.
- Limit Order: This is an order to buy and sell at a specific price. eg: submit limit order to buy ABC stock for no more $10.
- Stop Order or Stop Loss Order: An order to buy or sell a stock once the price of stock reaches specific price. When the stop price is reached, a stop order becomes a market order.
- Buy Stop Order: Order is entered at the Stop Price above the current market price.
- Sell Stop Order: Order is entered at the Stop Price below the current market price.
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Stock Purchase & Sales
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Technial calculations on data that are used to predict and indicate trends and signals.
- Leading Indictor: This predict future price movement
- Lagging Indicators: Look past trends and indiciate momentum (next move)
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Signals: This are specific recommendation on financial assets to be executed at a predetermined time and price
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Relative Strength Index (RSI): This is momentum indicator used in technical analysis that measures the magnitude (speed) and change of price movement to evaluate overbought or oversold conditions in the price of a stock or other asset.
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Technical Analysis of Stocks and Trends: Technical analysis of stocks and trends is the study of historical market data, including price and volume, to predict future market behavior.
- Don’t risk more than 2% of your account balance on a single trade
- Start small, trading just 1 or two stocks until you gain experience
- Avoid penny stocks (AvaTrade only offers the best large-cap stocks)
- Use limit orders for the best entries
- Protect your trades with stop-loss orders
- Don’t get greedy
- Stick to your trading plan