P1:a/b P2:c/d QC:e/f T1:g
gloss JWBK182-McDowell April 25, 2008 16:35 Printer: Yet to come
198 GLOSSARYscalper A trader who seeks to profit from very small price fluctuations. They buy
and sell quickly to make a quick profit. They often usestop and reverse(SAR)
techniques. They can trade larger trade sizes than trend traders and still maintain
proper risk control.
seasonal trading Trading based on consistent, predictable changes in price dur-
ing the year due to production cycles or demand cycles.
SEC SeeSecurities and Exchange Commission.
sector Used to characterize a group of securities that are similar with respect to
maturity, type, rating, and/or industry.
securities Also known asstocks.
Securities and Exchange Commission (SEC) The federal agency that is designed
to promote full public disclosure and protect the investing public against fraudulent
practices in the securities markets.
seller’s market A market in which demand exceeds supply. As a result, the seller
can dictate the price and terms of a sale.
sell off The sale of securities under pressure.
set-up When your trading rules identify certain criteria that must be present prior
to entering the market.
share This is a unit of measure for financial instruments including stocks, mutual
funds, limited partnerships, and REITs.
shareholder A person or entity that owns shares or equity in a corporation.
short When you sell before you have bought the item, you areshortingthe
market. This position is implemented with a sale, which profits from a declin-
ing price market. The term also refers to the trader or entity holding such a
position.
short call When you sell a call option that you don’t already own.
short put To sell aput option.
sideways market Also known as a bracketed, consolidating, channeled, or non-
trending market. Seebracketed market.
slippage The difference in price between what you expect to pay when you enter
the market and what you actually pay. For example, if you attempt to buy at 20 and
you end up buying at 20.5, you have a half point of slippage.
small cap Refers to the relative size of a firm’s market capitalization. Tradition-
ally, any firm with a market cap under $10 billion is referred to as small cap.
speculator A person who willingly accepts risk by buying and selling finan-
cial instruments or commodities in the hopes of profiting from anticipated price
movements.