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When the market or security tends to vary often and wildly in prices, it is said to be volatile.

The specific security, commodity, index or financial instrument that an option or futures contract is traded.

The measurement of how much an underlying security fluctuates over a period of time.

A stock trading below its fair value.

Volume is the daily number of shares of a security that are traded. Volume is one of the most important indicators we watch. Its relation with price movements tells us 90% of the story behind a stock?s movement and future movements. At its simplest, increased volume on increasing prices shows accumulation. Increased volume on lower prices shows distribution. There are many variations on this theme, and we spend a great deal of time poring over price/volume relations to determine which way a stock will move.

A security not listed on a stock exchange, but traded on the over-the-counter market.

A group of stocks or funds that you are tracking, but don’t currently own.

This occurs when a stock has consolidated, formed a base, or has been in a trading range, and then breaks above that level, surpassing resistance at the top of the range or base. Breakouts are suspect if they do not occur on high volume (compared to average daily volume). When playing a stock to buy on the upside breakout, we like to use a “buy stop” which calls for purchase when a stock rises above a certain price.

Occurs when the security has been listed and posted for trading, but the certificate representing the security itself is not yet issued and available for settlement. The exchange bulletin issued on listing of the security indicates if the trading will be done on a when-issued basis. In this case, the issuance of the security is guaranteed and the delay in issuance is often due to factors relating to the printing and distribution of the security. The period for when-issued trading is usually less than one week.

A stock is said to be on an uptick when the last trade occurred at a higher price than the one before it.