Transferable Security

A security that can be transferred from one party holder to another without restrictions, provided that all proper documentation is included.

Trend Lines

These are lines, both up and down, that are formed by a stock?s price movement. In the simplest sense, trend lines are drawn between a stocks successive lows to find support, and successive highs to find resistance. The more times a stock?s price touches a trendline and holds, the better an indicator it is. Trend lines can be long term and short term, and, as noted, can be used to determine support and resistance. We often use trendlines to help determine when we should enter of exit trades. When we are in positions and following the trend, we do not like to see the stock break its trend for greater than one day. If a stock does that, it has changed its character, and the trendline is most likely no longer in force.

Value Stocks

Companies currently out of favor with investors. These companies usually have low valuation ratios (price/earnings less than the S&P 500, price/sales ratio less than 2, price/book ratio less than 2). 

Venture Capitalist

An investor involved in financing a company’s operations before going public in exchange for an ownership percentage.

Triple Witching

the third Friday of March, June, September and December is the day when index futures, index future options, and certain stock options all expire. Triple Witching Fridays are know for high volatility.