Basic Trading Terms A Beginner Should Know

Here are 16 basic trading terms you need to know, which is very helpful on the path to becoming a professional trader.

1. Dump means a sharp drop in price
2. Pump in contrast to Dump, it means the price increases sharply
3. Stop loss: when you buy a coin but its price does not go up and drop continuously, you should stop loss. However, do not worry about accepting a temporary loss and waiting for that coin to bottom, then you will take it again, when the price rises, sell it for profit.
4. Take profit: You feel that profit is enough and you suspect that the coin falls, then sell.
5. Support is the lowest level on the chart where when the price moves to that level, the market will correct and rise again. In other words, this is like a spring mattress when you jump, you bounce like that.
6. Resistance: contrary to support, which is the highest level on the chart where when price moves to that level, the market corrects and falls again.
7. Volume: the transaction volume of the coin, you buy, there will be sellers. When a transaction is completed, it is called a successful transaction and counts as a Volume.
8. Market cap: the total market cap of a coin. Market cap is calculated by the nearest matching price of a coin multiplied by the total number of coins circulating in the market. As such, the market capitalization value will be changed according to the needs of the market at different times.
9. Bear/Bearish: the market trend is going down, the common symbol is a bear shape
10. Bull/Bullish: In contrast to Bear/Bearish, the most common symbol is a bull.
11. HODL: describes the action of holding the coin (not selling), regardless of the market going down, hope it will rise again.
12. Margin is a trading method with leverage, normally 2.5 times. For example, when you have 1 BTC that you trade on margin, you will have 2.5 BTC to trade.
13. Long means buying coin (Used for margin)
14. Short means selling coin (Used for margin)
15. FOMO (Fear of Missing Out): refers to the fear of missing out, fear of losing opportunities. People with this syndrome are often haunted by the fear of missing out on something that everyone around will achieve. Therefore, they often make mistakes because they make irrational decisions, leading to unpredictable consequences.
16. FUD (Fear – Uncertainty – Doubt) is a term referring to the syndrome of fear, uncertainty and doubt. In the fields of business, politics, ..FUD is a fake news tactic that affects perceptions by creating false information.

To become a professional trader in this field you must understand the terminology of trade coin and learn a lot about technical analysis. If you are in the beginning stage of trading, you can learn more about the relevant terms and effective trading techniques at https://neebank.com