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A model used to estimate the price of an option.

The process of dividing your funds among different classes of investments such as stock, bond, or real estate. You could further allocate your stock funds into value, growth, foreign, etc.

Statistical tools that measure the state of the stock market or the economy, based on the performance of stocks, bonds or other components. Examples are the S&P/TSX Venture Composite Index, the S&P/TSX Composite Index, the Dow Jones Industrial Average and the Consumer Price Index.

A mathematical model used to calculate the theoretical price of an option.

The study and use of price and volume charts and other technical indicators to make trading decisions. Technical analysis attempts to use past stock price and volume information to predict future price movements. Fundamentally, technical analysis shows in graphic form investor sentiment, both greed and fear. Understanding that concept is key to understanding technical analysis and being able to use it effectively to trade securities. With proper technical analysis, you can be ready for certain moves, and when your analysis is confirmed by the actual start of the move, trading positions can be taken. Technical analysis can be used for short-term trading or long-term position buying. We use if for both, and the two are closely related.

Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company’s balance sheet or an individual’s net worth statement.

A market that occurs when there are comparatively few bids to buy or offers to sell, or both. The phrase may apply to a single security or to the entire stock market. In a thin market, price fluctuations between transactions are usually larger than when the market is liquid. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock.

A single purchase or sale of a stock involving 10,000 or more shares. 

Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.

This is the price of the last trade of a stock when the market closes for the day. This price is of primary importance in our trading as where a stock closes in its range tells us much about the direction and momentum of the stock.