Glossary of Financial Terms

Tax Free Savings Account - A Canadian savings account that allows individuals to earn investment income tax-free, with contributions not being tax-deductible, but withdrawals, including gains, are also tax-free.

A type of savings or investment account where taxes on earnings, such as interest, dividends, and capital gains, are postponed until withdrawals are made, typically found in retirement accounts like IRAs or 401(k)s.

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume, to forecast future price movements and identify trading opportunities.

A unique series of letters assigned to a security or stock for trading purposes, used to identify and represent the company on stock exchanges.

WSTM rule: Stop trading after -4R loss, max gains at 4R.

A record-keeping tool or journal used by traders to document their trades, including details such as entry and exit points, position size, strategies used, and outcomes, helping to analyze performance and improve future trading decisions.

A software application or online interface provided by brokers that allows traders and investors to buy, sell, and manage financial instruments, such as stocks, options, and currencies, often featuring tools for analysis, charting, and risk management.

The area between a defined support level and a resistance level where an asset’s price tends to move back and forth, indicating consolidation and a lack of clear direction in the market.

A popular web-based charting and social trading platform that provides real-time market data, technical analysis tools, and charting capabilities for stocks, forex, cryptocurrencies, and other financial instruments, allowing users to share ideas and strategies within a trading community.

A type of stop order that adjusts automatically as the market price of a security moves in a favorable direction, allowing for profit protection while still enabling gains as long as the price continues to rise (for long positions) or fall (for short positions).

A market environment where prices consistently move in one direction (either upward or downward) over a sustained period, characterized by a series of higher highs and lows (uptrend) or lower highs and lows (downtrend).

A straight line drawn on a price chart that connects two or more significant price points, used in technical analysis to represent the direction of an asset's trend, whether upward, downward, or sideways.

​

Upthrust After Distribution - A price action pattern that indicates a potential reversal from bullish to bearish, characterized by a sudden upward price movement followed by a strong decline, suggesting that sellers are gaining control after a distribution phase.

The condition in which individuals who are capable of working and actively seeking work are unable to find a job, typically measured as a percentage of the total labor force. It is an important economic indicator of labor market health and economic stability.

A market condition characterized by a series of higher highs and higher lows, indicating sustained upward momentum and increasing prices over time.

​

Volatility Index - A market index that measures the expected volatility of the S&P 500 index options over the next 30 days, often referred to as the "fear gauge" because it reflects market sentiment regarding future volatility.

Volume Price Analysis - A trading method that examines the relationship between price movements and trading volume to assess market strength, identify trends, and anticipate potential reversals based on supply and demand dynamics.

Volume Point of Control - The price level with the highest trading volume over a specified period, indicating where the most significant trading activity occurred and often used to identify key support and resistance levels in market analysis.

Volume-Weighted Average Price - A trading indicator that calculates the average price of a security throughout the trading day, weighted by volume, providing insight into the average price at which a security has traded over a specific period.

A trading strategy that involves using the Volume-Weighted Average Price (VWAP) as a dynamic support or resistance level; traders aim to enter positions when the price deviates significantly from the VWAP and then reverts back, capturing potential reversals or momentum moves.

An investment strategy that involves selecting stocks that appear to be undervalued in the market, with the expectation that their true value will be recognized over time, leading to capital appreciation.

A form of private equity financing provided to early-stage, high-potential startup companies, typically in exchange for equity ownership, with the aim of generating significant returns as the business grows.

A pooled investment vehicle that invests in startup and early-stage companies, providing them with capital in exchange for equity or convertible debt, typically managed by a firm specializing in venture capital investments.

The total number of shares or contracts traded for a specific security or market during a given period, indicating the level of activity and liquidity in that market.

​

Working Capital - A measure of a company's liquidity, calculated as Current Assets minus Current Liabilities, reflecting its ability to meet short-term financial obligations.

West Texas Intermediate - A grade of crude oil that serves as a benchmark for oil prices in the U.S., known for its high quality and low sulfur content, traded primarily on the New York Mercantile Exchange (NYMEX).

A comprehensive financial service that combines investment management, financial planning, tax advice, estate planning, and other services to help clients grow and preserve their wealth over time.

An electronic method of transferring funds from one bank account to another, either domestically or internationally, typically used for large transactions and processed through secure networks.

A price action pattern in the Wyckoff Method, indicating a false breakout below a support level (the "spring") that traps sellers before a reversal occurs, suggesting a potential bullish trend as demand begins to outweigh supply.

​

​

Yesterday Close - The closing price of a security from the previous trading day, used as a reference point for current market analysis.

Yesterday High - The highest price at which a security traded during the previous trading day, used as a reference point for current market activity.

Yesterday Low - The lowest price at which a security traded during the previous trading day, used as a reference point for current market analysis and trend assessment.

You Only Live Once - A phrase often used to encourage taking risks and living life to the fullest, sometimes associated with making bold or speculative investment decisions in the financial context.

Year-over-Year - A financial comparison that measures the performance of a metric over a one-year period, often used to assess growth or decline in sales, earnings, or other financial data.

Year-to-Date - A measurement of performance from the beginning of the current calendar year up to the present date, often used to analyze investment returns or financial metrics over a specified timeframe.

Yesterday Yesterday Close - The closing price of a security from two trading days ago, used to analyze price movements and trends over a slightly longer timeframe.

Yesterday Yesterday High - The highest price at which a security traded two trading days ago, used as a reference point for analyzing price movements and trends.

Yesterday Yesterday Low - The lowest price at which a security traded two trading days ago, used as a reference point for analyzing price movements and trends.

The income generated from an investment, typically expressed as a percentage of the investment's cost or current market value, often referring to interest, dividends, or capital gains.

A graph that plots the interest rates of bonds with different maturities, typically showing the relationship between the yield and the time to maturity, used to assess economic conditions and forecast future interest rates.

The difference in yields between two different debt instruments, often used to assess the relative risk and return of investments, such as the spread between corporate bonds and government bonds.

The interest earned on a savings account, typically expressed as an annual percentage, reflecting the return on the deposited funds.

​

A digital payment network that allows users to send and receive money directly between bank accounts in the U.S. using an email address or mobile phone number, typically offering instant transfers with no fees.