Trading Terms That Every Trader Should Know (Part-1)

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4 years ago

Recently I was writing about crypto trading. I've started with very basic things like 'basic order types' and today's article will also be on basic terms related to trading world, Trading has it's own language and it'll be helpful for everyone to understand things going in financial world.

In this article we'll go through some basic terms and their elaborate explanation, terms like FOMO, ATH, ATL and many more terms.

So let's dive in...!!

1) Fear Of Missing Out (FOMO)

Fear Of Missing Out is an emotion of an investor, he/she feels at the time of buying assets, they fear about the missing out on the profit opportunity. As in human trading, emotions play a vital role, results in a parabolic price movement. If lots of traders get involved into an asset with a FOMO, that asset starts to show Bull movement.

2) Return On Investment (ROI)

I think many of you know what ROI but since we're covering all basics too, that's why I included it. So basically, ROI is an measure of the investment performance. Return on investment measures the return of investment w.r.t original cost. Many people use ROI to analyse and compare their various investments.

ROI can be calculated with an easy maths formula :

ROI = (current value - original cost)/ Original cost

Let's understand it with an easy and real life example. Suppose you bought BCH some months ago at $ 200 and now the current price of BCH is $ 250. So your ROI will be :

ROI = (250-200)/200 = 0.25

3 & 4) All Time High/Low (ATH/ATL)

Well in this case I think the heading tells the story, all time high means the highest price of that asset ever reached and all time low means the lowest price of that asset ever fallen. So this is easy, isn't it ? But what are the aspects of ATH & ATL and why I've included them in this article.

When the the price of asset is at it's ATH it means that the each and every trader who bought that asset is in profit and vice versa for ATL. (From now I'll consider ATH and things will be vice versa for ATL)

Many traders, specially institutional traders love to trade between support and resistance lines and along with break-even points. But when the price breaches ATH there aren't any traders who are willing to sell, that's why it is referred as 'blue sky breakout'. ATH breakout also spikes the trading volume of that asset as many 'dah traders' gets attracted to it. There many other aspects of ATH & ATL used in technical chart analysis, so it's easy to understand and has lots of usages.

5) Know Your Customer (KYC)

I'm guaranteed everyone of you had ever encountered with this term, maybe e.on centralised exchanges are other financial platforms like e-wallets. Stock exchanges or centralised Crypto exchanges have to follow national and international guidelines, such as here in India Bombay stock exchange (BSE) have to comply with the regulations set by Indian government.

Know Your Customer (KYC) guidelines ensures that the platform or institutions translating trading of financial instruments knows the identity of their customers. Is it really important ? Well it is important in traditional financial asset trading stock exchanges to minimise risk of money laundering. What's the rise of blockchain technology which is aimed to develop trustless systems based on smart contracts. Now there are few decentralized crypto exchanges available which are completely managed by smart contracts without any KYC, Uniswap is the best example.

So friends I think this is enough for this article, there are few more important terms, I'll share them in next article, no need to exhaust in single article πŸ˜€

Update :

Part-2 of this article has been published check it out : Trading Terms That Every Trader Should Know (Part-2)


This is it from my side on 'trading terms', these are the few main terms. Hope you enjoyed & found this article informative. If you're interested in cryptocurriencies, blockchain technologies & projects then subscribe me to get notified for my future articles.

Follow me on my twitter : https://twitter.com/ashma1818?s=09

Thanks for your time and appreciation...!!

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Avatar for Ashma
Written by
4 years ago

Comments

Thank you so much for his wonderful lecture. But what I really want to learn about crypto trading is...

  1. on how to know when to buy and when to sell a coin...
    1. Which coin is good to stake and
    2. Legit platform to stake your coin in so one can be scam free

I hope am not asking too much🀭

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4 years ago

Nah it's okay @Diamondrich actually I'm glad we're having this discussion.

So everyone wants to know when to buy & when to sell πŸ˜… but first of all you've to learn all the things that you're going to trade. Like say I'm a quant trader, so I make my strategies compatible with codes. Similarly if you're into technical analysis or fundamental analysis, then you should make your own strategy, build your own risk management system and stick with it in any situation, but here's contradiction as an successful trader you should know when to break your strategy and when to stick with it. Make your strategy in such a way that you don't have to bend it in normal situation. And talking about staking then I use 'Celcius network' they don't charge any type of fees, just keep earning on your staking. If you're interested I can send you my referral link πŸ€ͺ or if you're in hurry then you can directly go to Google 🀣 And staking point of view, stablecoins are good because of high rates. And for serious and large amount of staking then I would suggest you to stake 'MCO' on 'crypto.com' cause you get VIP offers, like currently they're offering 50% off on BTC for MCO holders.

I typed an article here 🀣

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4 years ago

I would be most grateful to read more of your article on staking and be more grateful when you hold my hands through step by step into staking 🀭

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4 years ago

Definitely, I'll write about staking too. Btw what do u do ? Means as an occupation

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4 years ago

Am a councilor, but love crypto with ally heart because I gain more from being a lover of crypto🀭

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4 years ago

Ohh, r u on twitter ? I love to keep in touch with good people. If you like, we can be frnds there too. Here's my twitter handle : https://twitter.com/ashma1818?s=09

Send me message there, so we can contact each other anytime (instead of discussing in comments πŸ˜…)

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4 years ago

Am sure I already followed you as soon as I read your beautiful article.🀭 You can follow me back @diamondrich16......my Twitter handleπŸ‘Œ

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4 years ago

πŸ€ͺ I think I missed that notification. Anyway nice to talk to you @Diamondrich ask me anything if you stuck somewhere, I'll love to help

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4 years ago

informative

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4 years ago

πŸ™

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4 years ago

Very clearly explained with good , attractive..I just have to say one thing - Thank You

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4 years ago

You're welcome @nipa7

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4 years ago

Really helpful bro

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4 years ago

πŸ™

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4 years ago

This terms are so cool and quite coded😏

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4 years ago

Thanks for sharing.i sub u plZ sub me support me thanks...

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4 years ago

@Buxhi

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4 years ago

Good Article Check mine "forrysakki"

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4 years ago

Yup @forrysakki I checked your articles !!

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4 years ago

Thanks

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4 years ago

I always read articles about trading and take a note for the important details before entering to trading. Your article is very helpful

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4 years ago

Glad to meet trader @mooontivated 🀝 and also for you find my article helpful. Btw are you day trader? Do you trade on Spot, margin or futures ?

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4 years ago

I'm just starting on trading Sir Ash, for now, I'm practicing on a demo. I guess I have to learn more. That's why I'm looking forward to your next article about trading.

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4 years ago

Ohhkay, yup I'll keep sharing articles related to trading. If you want to learn in detail then you can check 'investopedia' and for data analysis 'intotheblock' is best. Just let me know if you want some help, I would love to discuss.

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4 years ago

Yosh! Thanks for that. At least I have a source to take look to. Big help! πŸ™

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4 years ago

You're welcome πŸ™πŸ‘

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4 years ago

Okay I bought too early today for $40, now my crypto is at $38 in value still going down.πŸ˜‚ I'll hold on that crypto. Anyway I would like to learn more from you my friend.πŸ˜†πŸ–’Thank you for sharing these easy terms in crypto world.

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4 years ago

Ohh @Vladilus I shared a short post about crypto downtrend yesterday, we made pretty good profit in downtrend. Anyway for now I'll suggest you to get your assets back into stablecoins and wait for things to get normal, if you think things are under your strategy then continue with it !! Make your own research and decisions according to your own analysis.

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4 years ago

Yes exactly I'll do that, I was just late to look my charts.😭

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4 years ago

Don't worry, now on keep stop losses on never keep your position without stop-losses

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4 years ago

I'm on a limit buy/sell.πŸ˜‚ Oh well I'll take that advice.

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4 years ago

πŸ‘πŸ‘

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4 years ago

Trading crypto Currencies is one of the toughest activity but it is also very profitable if it is learnt properly just like forex trading

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4 years ago

It's 4-5 days I am also studying about trading and also I started trading. Really it's also another space in crypto currency. And also I am enjoying my loss project. Hahahaha!!! Thanks a lot dear for your nice infotmative article!!!

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4 years ago

πŸ˜€πŸ˜€ welcome to trading @Hiyamoni123, if you're want some help you can ask me. And refer following websites : <IntotheBlock> <Nomics> You'll get lots of data for technical analysis & good luck πŸ‘

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4 years ago

Thanks a lot dear..I don't learn enough about trading.I just know Buy and sell,deposit and transfer.Otherwise I have to know a lot.So,obviously I need your help dear..Be ready for help dear!!!

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4 years ago

I'm always here to help you @Hiyamoni123 and trust me Trading is very easy thing, you only have to follow some basic rules. Once you made your strategy, risk management system and know when to make them flexible you're the boss of market πŸ˜€

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4 years ago

Thanks a lot dear for your inspiration... really your suggestion always converted tough to easy dear!!!

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4 years ago

I think many of you know what ROI but since we're covering all basics too, that's why I included it.

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4 years ago

πŸ™„ didn't get

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4 years ago

He is spamming my friend, those are your lines from your article @Ashma.

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4 years ago

Yup, I got that, that's why I asked @Vladilus

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4 years ago

You know... I should've added these terms on my "Trading In a Nutshell" articles. Good choice of terms to be used. Do you have more terms people can learn?

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4 years ago

Yes there are few more terms, but I know people aren't interested in reading lots of things. I'll include them in next article. And it's really great to hear that you found this article helpful @RowanSkie

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4 years ago

Thanks for sharing, I didn't know all this ..All i know is the KYC and ROI of course but the ATL/ATH and FOMO I had no idea at all. . I really glad you write this article. Thanks again and more power to you.

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4 years ago

Yup, ROI & KYC are much common than ATH & FOMO. You'll find more in my next article (Part-2) of this article

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4 years ago

Come here dear @reo this is what I'm talking about, we can learn here if we really want to, @cristy dear, maybe you want to try this too, she has a lot of Article regarding crypto.

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4 years ago

Glad you're referring to your friends @Ruffa πŸ™ I hope they find it helpful

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4 years ago

Oh, they want ro learn it too, that's why I invite them, Thank you so much for sharing this to us ❀️

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4 years ago

πŸ™πŸ™

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4 years ago

wow. very informative. i'm interesting in that article because i learn a lot of things about that.

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4 years ago

Glad to hear that @Jack689

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4 years ago

Welcome 😊😘

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4 years ago