Just like any other occupation or hobby, there are many terms in the realm of trading with which you won't be familiar. You'll learn many of the terms at the BetterTrades introductory workshop, while other terminology you'll pick up as your experience grows.

Here are a few of the trading terms you'll learn when you get involved with Better Trades. Some terms will be use more than others, but you'll likely come across each of them at one time or another as you pursue better trades.

• Bear market: A market in which prices of a certain group of securities are falling or are expected to fall. Although figures can vary, a downturn of 15%-20% or more in more than one index (Dow or S&P 500) is considered a bear market.
• Bull market: A market in which prices of a certain group of securities are rising or are expected to rise. BetterTrades teaches students how it is possible to profit in both bear and bull markets.
• Technical analysis: A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value. Technical analysts often use charts to identify patterns that can suggest future activity.
• Ask: The price a seller is willing to accept for the security. This is sometimes referred to as the offer price.
• Bid: The quoted bid is the price at which a Market Maker is willing to buy a security.
• American Option: An option that can be exercised at anytime during its life. Most BetterTrades activity is conducted around American options.
• European Option: An option that can only be exercised at the end of its life. The system taught by Better Trades coach John White is based on European options.
• LEAPS: An options contract that expires more than 9 months in advance, and can last as long as 2 years, whereas normal options tend to last no longer than nine months.
• Strike price: The stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract.
• Expiration date: The end of the life of an options or futures contract. Options cease trading on the third Friday of their expiration month and expire at 11:59AM Central Time on the Saturday after the third Friday of that particular month.
• Naked position: A trading position that arises when an investment firm has securities but they are not yet sold or hedged.
• Bo Derek: Slang used to describe a perfect stock or investment. The name Bo Derek actually comes from the 1979 movie "10" in which she portrayed the "perfect woman".
• Jennifer Lopez: A slang technical analysis term referring to a rounding bottom in a stock's price pattern. Traders like the rounding bottom (in a stock) because it means expectations are gradually shifting from bearish to bullish.
• When learning the stock market, a student needs to become familiar with some of the common terms used in trading. Here are a few that should become recognizable:
• Calls: An option contract giving the owner the right to buy a specified amount of an underlying security at a specified price within a specified time. Sometimes refers to the act of exercising a call option.
• Puts: An option contract giving the owner the right to sell a specified amount of an underlying security at a specified price within a specified time. Sometimes refers to the act of exercising a put option.
• Bulls: An investor who thinks the market or a specific security or industry will rise. A bull market is an extended period in which the market consistently rises.
• Bears: An investor who acts on the belief that a security or the market is falling or is expected to fall.
• Candlestick charts: A price chart that displays the high, low, open and close for each day over a specified period of time.
• Line chart: A price chart that displays the closing price for each day over a specified period of time.
• Premium: The amount of cash that an option buyer pays to an option seller. The difference between the higher price paid for a security and the security's face amount at issue.
• Bollinger Bands: These are bands plotted two standard deviations away from a simple moving average. Because standard deviation is a measure of volatility, Bollinger Bands adjust themselves to the market conditions. When the markets become more volatile they widen and contract during less volatile periods. By using standard deviations rather than a fixed percentage, the bands adjust for volatility. During volatile periods, the bands move further away from the average, when the market is flat, the bands move closer to the average.
• Moving Averages: Frequently used in technical analysis, a Moving Average is an indicator that shows the average value of a security's price over a period of time. When calculating, you need to specify the time span (such as 200 days).
• Technical analysis: A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value. Technical analysts often use charts to identify patterns that can suggest future activity.
• Fundamental analysis: A method of evaluating securities by attempting to measure the intrinsic value of a particular stock. Fundamental analysts study everything from the overall economy and industry conditions, to the financial condition and management of companies.
• New York Stock Exchange: A corporation, operated by a board of directors, responsible for setting policies and supervising the stock exchange and its member activities, and listing securities. The NYSE also oversees the transfer of members' seats on the Exchange and judging whether a potential applicant is qualified to be a specialist.
• NASDAQ: A computerized system that facilitates trading and provides up-to-the-minute price quotations on some 5,000 of the more actively traded over-the-counter stocks.
• Ask price: The price a seller is willing to accept for the security. Sometimes referred to as the offer price.
• Bid price: The price a buyer is willing to pay for a security.
• Beta: A means of measuring the volatility of a security or portfolio of securities in comparison with the market as a whole. Beta is calculated using regression analysis. A beta of 1 indicates that the security's price will move with the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. A beta less than 1 means that it will be less volatile than the market.
• Delta: The ratio of change in the price of a derivative with the price of the underlying asset.
• Strike price: The stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract.
• Open interest: Usually means the total number of options or futures contracts that were not closed or delivered.

Most of these trading terms are available to any BetterTrades student via a good financial dictionary or through some of the web site designed to provide a good background for stock market information.