CHATROOM JARGON & ABBREVIATIONS

Answers to All Your Doubts

  • 9am RH pop: Robinhood pre-market hours open at 9:00am ET, which often leads to stock pops in trending stocks

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

  • Algos: Hi-tech automated trading algorithms that are programmed to react to breaking news

  • Breakout (b/o): A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support.

  • Buying on dips: Buying shares in anticipation of a breakout, allowing for a better price average. For example. If a stock breaks out above 5, hits 5.50, and you expect it to go to 6, you may wait for the stock to pullback to 5.30 before entering a position.

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

  • 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)

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

  • Fade / 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)

  • Gapper: A stock is generally considered a gapper if it’s expected to “gap up” the next day. Typically, when a stock is trending up all the day, and closes near its highs.

  • Halt: When a stock halts, trading is temporarily paused due to a circuit breaker rule. Halts can last for a few minutes or for days. There is inherent risk to holding a position into a halt because you do not know how the stock will react when trading reopens.

  • Heavy: A "heavy" stock struggles to gain upward momentum, making it a potential candidate for a short trade. The stock may be setting lower highs or experiencing failed follow through.

  • 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 associated with the borrows and other minimum requirements

  • IBKR: Interactive Brokers brokerage

  • Locking In: Closing out part (or all) of a position to "lock" gains, meaning you are turning profits from unrealized to realized.

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

  • 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

  • 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 level

  • 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.

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

  • 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)

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

  • TDA: TD Ameritrade brokerage

  • ToS: ThinkorSwim trading platform

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