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CHATROOM JARGON & ABBREVIATIONS

Frequently Asked Questions

  • 8am shuffle: Some brokers like eTrade open the auto-routing at 8:00am ET, which causes price imbalances.

  • 8K: SEC form 8K is a disclosure form filed by a company to the SEC to notify of any events or information that may affect an investor (can be positive and negative).

  • 9am RH pop: Robinhood pre-market trading opens at 9:00am ET, which sometimes leads to stock pops

  • A/H: After-hours trading (4pm - 8pm ET)

  • Algos: Hi-tech automated trading algorithms that are programmed to trade and manipulate stock price.

  • ATM: At The Market offering allows the issuer to sell newly issued shares at the current market prices.

  • Breakout (b/o): A stock price moving outside a defined support or resistance level with increased volume.

  • Call sweeps: A bullish options activity that shows high interest of a stock at a certain price and expiration

  • Choppy: When buyers and sellers are in balance, without a clear winner (price tends to move up and down quickly).

  • CP: Centerpoint Securities brokerage (owned by Clear Street)

  • DCA: Dollar-cost averaging is a strategy to buy a stock in multiple transactions as the price becomes more favorable, while the long-term conviction is still valid.

  • d/g: downgrade by a stock analyst

  • e/r: Earnings and revenue for a company for the given quarter (includes guidance too)

  • Effect: A type of public SEC filing (usually preceded by S3) that discloses what shares insiders can convert and sell in the open market.

  • Fade: A stock that is slowly trending down in price.

  • Fail / Crack: A stock failing to breakthrough and falling down

  • fft: Failed follow through (bearish action based on key price level)

  • Float: The "float" is a stock's supply (stocks with low floats usually have higher volatility)

  • FOMO: Fear of missing out (usually a forced rally without fundamentals)

  • Flush / Wash: The sudden downward price action, sometimes designed by the market makers to trigger stop-loss limits for longs.

  • Gapper: A stock expected to “gap up” the next day.

  • Halt: When a stock halts, trading is temporarily paused due to a circuit breaker rule. Circuit-triggered trading halts typically last for 5 minutes.

  • Heavy: A "heavy" stock struggles to gain upward momentum.

  • hod/lod: "High of day" and "low of day" - referring to the high and low prices for the day.

  • htb: Hard To Borrow - stocks that cannot be shorted easily, they usually have high interest rates

  • IBKR: Interactive Brokers brokerage

  • Locking: Closing out part (or all) of a position to "lock" or realize gains.

  • Market makers: the big trading funds that can control the price of a stock in either direction

  • MEF: An SEC S1 filing to indicate an upsized offering (registration of up to an additional 20% of securities)

  • moc: Market on Close (usually the buy/sell imbalance a few minutes before 4:00pm ET)

  • Offering / Secondary: An additional offering of shares that’s dilutive to existing shareholders, so stock price usually moves down to adjust for the price

  • PIPE: Private investment in public equity (PIPE) deal is a type of offering where a private investor, like a mutual fund or large institution, buys a chunk of shares at a below-market price.

  • Pre-mkt (PM): Pre-market trading (4:00am - 9:30am ET); PM hours will vary by broker

  • pt: price target (typically mentioned with upgrades/downgrades)

  • Pump: A stock promoted by someone in a chatroom, Twitter or a newsletter, leading to an artificial (and usually temporary) increase in price/volume

  • Put sweeps: A bearish options activity that shows high interest of a stock at a certain price and expiration

  • r/g: When a stock moves from red (negative on the day) to green (positive on the day). This shift in sentiment is often followed by a boost of momentum.

  • S1: SEC form S-1 is the initial registration form for new securities required by the SEC for public companies.

  • S3: SEC Form S-3 is utilized when a company wishes to raise capital, usually as a secondary offering after an initial public offering has already occurred (S3 is more comprehensive vs S1).

  • Scalp: Exit quickly on small position moves to realize profits.

  • Shove: A sudden upward price action, sometimes designed by the market makers to trigger stop-loss limits for shorts

  • Squeeze: A stock that is moving upward due to shorts covering their positions.

  • S/L: Stop loss limit (e.g. s/l of 40c means stop loss at $0.40 below buy price, for a long trade)

  • Slam: A big red candle (stock price drop)

  • ss: Short side trade

  • SSR (Uptick Rule): Short sale restriction is a SEC rule that's triggered when a stock falls over 10% from its previous close; it prevents traders from shorting at the bid price for that day (and the next day) to prevent it from dropping further, and allows shorting only on an uptick.

  • Swipe: A big green candle (stock price pop) with volume

  • TDA: TD Ameritrade brokerage

  • ToS: Think or Swim trading platform

  • vwap: Volume-weighted average price (VWAP) is a key benchmark used by many traders, it gives the average price a security has traded at throughout the day, based on both volume and price. 

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