P1:a/b P2:c/d QC:e/f T1:g
gloss JWBK182-McDowell April 25, 2008 16:35 Printer: Yet to come
200 GLOSSARYtechnical analysis Price forecasting methods based on a study of price itself (and
volume) as opposed to the underlying fundamental (such as economic) market fac-
tors. Technical analysis traders and investors use charts to detect patterns in the
market. Technical analysis is often contrasted with fundamental analysis, and some
investors and traders use a combination of the two.
The Trader’s AssistantTM A complete trade posting and trade record keeping sys-
tem created by Bennett A. McDowell to streamline your trading and keep you orga-
nized by recording all trade information on trade posting cards and trade ledgers.
the trader’s mindset Seepsychology.
tick The increment of movement and price fluctuation up or down in the futures
market is called a tick.
ticker symbol Standard abbreviation used to refer to a stock when placing orders
or conducting research.
time frame The time frame is represented by a price bar interval time such as
two-minute chart, daily chart, and so on.
trade When a buyer and seller agree on price but disagree on value a trade oc-
curs. More simply stated, it is the point where the value of selling and the value of
receiving are equal and the trade occurs.
trade risk The risk traders attempt to control through money management and
risk control.
trade size This is also known asposition size. It is the size of your trade or invest-
ment represented in the number of units (shares, contracts, etc.) of the market you
are trading or investing in. Selecting optimal trade size is important in maintaining
solid risk control.
Trade Size CalculatorTM Risk control software created by Bennett A. McDowell
to determine a trader’s maximumtrade sizebased on certain variables such as
percent risk and equity account size.
trading Opening a position in a financial market, either long or short, with the
plan of closing it out at a substantial profit. If the trade goes against you, the plan is
to cut losses quickly by using effective risk control.
trailing stop This stop-loss exit moves in the direction of a trend trade, locking in
profit in either a long or short trend.
transaction The delivery of a security by a seller and its acceptance by the buyer.
trend The tendency of prices to move in a given general direction (up
or down).
trend channel A trend line or series of trend lines used to identify upward or
downward sloping trends by placing the trend lines on the highs and lows of the
channel.