Textbook Trading – Notes and Review of Chapter 2 – Setup and Terminology by @investorslive

Table of contents:

Summary:

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More preparing for the meat to come later. A lot of background and history in this chapter. But once that is over there comes a lot of useful info on how to use the chat and all of IU’s services. For sure basics, but if you are a new subscriber or considering subscribing this chapter is VERY useful. It will save you and other traders frustration because you will be able to enter the chat and already know the shorthand. IU chat is very fast paced, if you don’t know the terms you will get confused and annoy other traders by asking simple questions that can be answered in this 30 minute video.

intro

Also a lot of definition of terms, how to place orders and a very good description of short selling. I would HIGHLY recommend this chapter to any new trader. Sure investopedia is great but Nate’s real world definition of terms is superior.

Summary

Some random bits in this chapter that aren’t very useful but I’m sure Nate gets asked about all the time. Everybody always wants to know about desks and software and PC spec’s etc. Though in my opinion none of this shit makes you any money. But that being said I get asked about it all the time so I’m sure Nate does 10X more than me so he probably felt obligated to put it in here. Good thing is he goes over it quickly and moves on.

Good foundation chapter.

Notes:

History of IU service
-Battle Overtrading by providing information
Profit.ly and verifying trades
-Paper trading vs real trading
Overview of IU methodology
-Daily income
-3:1 risk to reward
-long and short
-sub penny to big dollar stocks
-CLEAN SLATE ever day – go home in cash
How to get started with IU and description of services and options
-Good for beginners/new to service
Standing Desk – description and justification.
PC specs
Terminology – beginners
-Buy – Long
-Sell – Short
-Shorting
-Buy to cover
-Good basic introduction to short selling and how to do it
Orders
-Limit
-Description
-Downsides
-Market
-Description
-Downsides
Broker/Market Terminology and definition
-Margin
-Short Squeeze – forced buy ins
Why margin is good but most use it poorly
Prop firms
ETB/HTB – descriptions and definitions
-Brokers
Exchanges
-Most trades Nasdaq
-Lot on OTC/Pinks
Chat Terminology
-PPS – price per share
-PCL – previous day close
-DD – due diligence
-HOD – High of day
-nHOD – New high of the day
-LOD – Low of day
-nLOD – New low of the day
-52’s – At or around the one year high or low
-EOD – end of day
-ER or E/R – Earnings are that day/night or soon
-PM – Pre market trading
-list of times for brokers and exchanges
-AH – After hours
-casino/reports
-R/R
-risk to reward
-O/N – Hold over
-holding overnight
-SS – S/S
-Short sale
-Range
-daily range – highs and lows of the day – detailed description
-L/F – Low Floater
-Big range/low volume
-bigger spread
-use less size
-R/G – Red to Green
-typically a buy
-G/R – Green to Red
-typically a short
Level II (Level 2) Terminology and definitions
-Bid
-Ask
-Spread
Watching Level 2 takes time
-SSR
-What it is and how it works
-How to trade it comes later in DVD

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