Trading & Finance Academy

A trading method that evaluates price and volume data to identify investment opportunities and optimal entry/exit points, assuming past patterns predict future movements.

A price point where a downtrend is expected to pause due to increased buying interest, acting as a 'floor' for the asset's price.

A price point where an uptrend is expected to pause due to increased selling pressure, acting as a 'ceiling' for the asset's price.

A trend-following indicator that smooths price data by creating a constantly updated average price over a specific time period.

A momentum oscillator (0-100 scale) that measures the speed and magnitude of price changes to identify overbought (>70) or oversold (<30) conditions.

Moving Average Convergence Divergence - a trend-following momentum indicator showing the relationship between two moving averages to identify potential buy/sell signals.

Visual representations of price movements showing open, high, low, and close prices, forming patterns that signal potential reversals or continuations.

Straight lines drawn on charts connecting price points to identify the direction and strength of a price trend (uptrend, downtrend, or sideways).

Recurring formations on price charts (head and shoulders, double tops, triangles) that suggest future price movements based on historical behavior.

The study of trading volume to confirm price trends and identify potential reversals, as high volume validates price movements.

A technical tool using horizontal lines to indicate areas of support or resistance at key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, 100%).

Volatility bands placed above and below a moving average that expand and contract based on market volatility, helping identify overbought/oversold conditions.

A momentum indicator comparing a security's closing price to its price range over a specific period to generate overbought/oversold signals.

Tools that measure the rate of price change to identify the strength of a trend and potential reversal points.

A strategy that relies on analyzing raw price movements without indicators, focusing on support/resistance, candlestick patterns, and chart formations.

A predetermined price level at which a losing position is automatically closed to limit potential losses and protect capital.

The process of determining how much capital to allocate to a single trade based on account size, risk tolerance, and trade setup.

The relationship between potential profit and potential loss in a trade, typically expressed as a ratio (e.g., 3:1 means risking $1 to potentially gain $3).

The strategy of spreading investments across different assets, sectors, or markets to reduce overall portfolio risk and volatility.

Using financial instruments (options, futures, inverse positions) to offset potential losses in an investment by taking an opposite position.

The overall exposure to potential losses across all investments, measured through metrics like standard deviation, beta, and Value at Risk (VaR).

The peak-to-trough decline in portfolio value, measuring the largest loss from a high point before recovery begins.

Using borrowed capital to increase position size and potential returns, which also amplifies potential losses proportionally.

The statistical relationship between two assets' price movements, used to build diversified portfolios with uncorrelated assets.

An investor's psychological and financial ability to withstand losses without panic selling or abandoning their investment strategy.

A predetermined price level at which a winning position is automatically closed to lock in gains and avoid giving back profits.

A dynamic stop loss that moves with the price, protecting profits while allowing the trade to continue if the trend persists.

The largest percentage decline from peak to trough in a portfolio's value over a specific period, indicating worst-case historical loss.

A portfolio allocation strategy that balances risk contribution across different asset classes rather than dollar amounts.

Strategies to control portfolio fluctuations through position sizing, diversification, and hedging based on market conditions.

A method of evaluating a security's intrinsic value by examining financial statements, economic factors, industry conditions, and management quality.

Price-to-Earnings ratio - a valuation metric comparing a company's stock price to its earnings per share, indicating how much investors pay for each dollar of earnings.

Earnings Per Share - a company's net profit divided by outstanding shares, measuring profitability on a per-share basis for comparison purposes.

Discounted Cash Flow - a valuation method that estimates an investment's value by discounting expected future cash flows to their present value.

The true, fundamental worth of an asset based on financial analysis, independent of its current market price.

The net asset value of a company calculated as total assets minus liabilities, representing shareholder equity.

The percentage increase in a company's sales over time, indicating business expansion and market demand.

The percentage of revenue remaining after expenses, measuring how efficiently a company converts sales into profits.

A leverage metric comparing total debt to shareholder equity, indicating financial risk and capital structure.

Return on Equity - a profitability metric measuring net income as a percentage of shareholder equity, showing how effectively management uses capital.

Price/Earnings-to-Growth ratio that adjusts P/E for expected earnings growth, helping identify undervalued growth stocks.

Cash generated by operations minus capital expenditures, available for dividends, debt repayment, or reinvestment.

Annual dividends per share divided by stock price, showing the income return on an investment.

Total value of a company's outstanding shares, calculated as share price multiplied by shares outstanding.

A sustainable competitive advantage that protects a company from competitors and preserves long-term profitability.

The strategic distribution of investments across different asset classes (stocks, bonds, cash, real estate) to balance risk and return.

A comprehensive process of setting financial goals, creating strategies, and managing resources to achieve long-term objectives.

Strategies to minimize tax liability through tax-advantaged accounts, tax-loss harvesting, and efficient investment structures.

The strategic decision-making process of distributing financial resources among different investments, projects, or business units.

The potential benefit foregone when choosing one investment over another, representing the cost of the next-best alternative.

Buying and selling securities within the same trading day to profit from short-term price movements, closing all positions before market close.

Holding positions for several days to weeks to capture medium-term price swings and trends in the market.

A strategy of buying undervalued stocks trading below their intrinsic value, popularized by Warren Buffett and Benjamin Graham.

Focusing on companies with above-average growth potential, even if current valuations appear high.

Investment strategy involving frequent buying and selling to outperform market benchmarks through stock selection and market timing.

Buy-and-hold strategy tracking market indices with minimal trading, offering lower fees and tax efficiency.

Safekeeping and administration of financial assets by third-party institutions, ensuring security and regulatory compliance.

Bundled services for hedge funds including custody, leverage, securities lending, and operational support.

Corporate function managing cash, liquidity, funding, and financial risk to ensure operational efficiency and optimize returns.

Optimizing cash balances across accounts and geographies to minimize idle cash while ensuring liquidity.

Large organizations (pension funds, endowments, sovereign wealth funds) investing on behalf of members or beneficiaries.

State-owned investment funds managing national reserves and commodity revenues for long-term wealth preservation.

Lending stocks or bonds to short sellers in exchange for fees, facilitated by prime brokers with collateral protection.

Providing leverage to hedge funds for trading, secured by portfolio collateral and subject to margin requirements.