Glossary of investment terms – part II

16-12-2024

To better understand

It is a very bad idea to throw yourself in at the deep end and enter the market without knowing the basic principles of investing. Then you can make very risky decisions and lose a lot. Unprepared people are too often driven by violent emotions, and these are definitely bad advisors. Luckily, nowadays, novice investors can use many affordable sources to help them make the right decisions. First of all, they have at their disposal traditional readings and textbooks. Players who prefer to always have the materials with them and use them at any time can visit reliable blogs or investment portals, such as the Lion Money Partners portal. Lion Money Partners provides, m.in, usefulI investment presentations . In addition, of course, it is always worth using the knowledge of more experienced investors from the environment. However, it is not possible to imitate the actions of others in their entirety. It is also impossible to avoid learning while investing, both from your own mistakes and those of others. However, it is worth doing everything to minimize the risk of losses. Access to courses made available on training platforms will be helpful. A must-have for every investor should be a glossary of investment terms, without which it will be difficult to understand other players and the entire market.


Remember about these concepts...

Some of the terms related to investing are funny, others come from familiar words, but they mean something completely different than everyday life. They can be completely incomprehensible to people who have not had contact with them before. A short dictionary will try to explain them. In addition, it is worth using the materials provided  by the Lion Money Partners portal. Lion Money Partners provides m.in training presentations.


  • Strong hands are stocks that are held by institutional investors.
  • A rather intriguing term has been given to the phenomenon of selling a part of one's shares. The person who does it... shortens.
  • One of the phenomena characteristic of the stock market is when stock prices fall sharply. Such a situation knocked it down.
  • Not all courses have long-term growth. If the price first rises from a certain level, then it can fall back to an earlier level. Then it is said that the course has returned to base.
  • However, there is also a term for companies whose prices have recently experienced sharp increases. Such a company is a balloon.
  • Some people choose to buy or sell stocks on a regular basis, made by trading with an investor who has placed a very large order on the other side of the market. Such a situation has become known as dismantling the candy bar. The bar itself is a large number of shares in a single order appearing on the sell order book close to the current price. Its purpose is to block the possibility of growth.
  • If someone takes advantage of every increase in stock prices to sell them, it means that they are quenching demand.
  • A large order that appears on the order book for all investors is called a pajda.
  • On the market, you can find companies that are characterized by large capitalization and liquidity. Its name comes from the most expensive chip to play in Monte Carlo casinos. It is a Blue Chip.
  • The list also includes one abbreviation that every investor should know. KNF stands for the Polish Financial Supervision Authority, i.e. the central institution supervising the financial market.
  • The concept of liquidity is also important. It is the ability to enter into a transaction with no or minimal impact on the price of a given financial instrument. It is worth noting that liquid instruments are distinguished by high investor activity. This applies to both the number of orders and trades.
  • The last item on the list of terms is day trading. It is a short-term trading strategy that involves opening and closing positions within a single session in order to make a profit on the price movements of financial instruments. There are also different varieties of it.

There are definitely more terms that every investor should know. The above are some of the basic ones without which it is better not to enter the market of players. Of course, learning also takes place during investing - it is impossible to learn all the rules and issues at once. However, it is worth preparing as well as possible. For this purpose, you can use  the Lion Money Partners investment portal, which provides investment presentations and many other useful materials. It is worth remembering that good feedback about Lion Money Partners come from users who have been using the portal for some time.

To start investing, you need to understand the market, at least when it comes to the basics of the market. Investors have their own peculiar language, which may seem relatively funny to unfamiliar people. A clear glossary of terms will make it easier to use them.


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