Trading glossary: the essential terms, explained simply
Every term is explained in plain language, with worked examples and zero jargon. Start with the trading guide if you are completely new.
How does trading actually work? A plain-English guide for complete beginners
What trading is, how it differs from investing, how prices really move, what an order and a position are, and how to practice safely before risking money.
How do you read a candlestick chart as a beginner?
Learn how to read a candlestick chart step by step: what the body and wicks show, what colors mean, and a worked example you can follow as a complete beginner.
How do you identify a trend on a price chart?
How to identify a trend using higher highs and higher lows, what uptrend, downtrend and range really mean, and a worked example with real numbers.
How do support and resistance actually work on a chart?
How support and resistance levels form, why they are zones rather than exact lines, and how a broken resistance turns into support, with a worked example.
What does volume mean in trading and why does it matter?
What trading volume measures, how it confirms price moves, what a volume spike means, and why low-volume breakouts are less reliable.
What does the RSI indicator actually tell you?
What the RSI indicator measures, what the 70 and 30 zones really mean, why overbought is not a sell signal, and a worked example you can follow.
What is the difference between a bull market and a bear market?
Bull and bear markets explained for beginners: where the names come from, what defines each phase, how sentiment flips, and why bear markets are normal.
When should you use a market order vs a limit order?
The difference between market and limit orders, when to use each, and the core trade-off: guaranteed execution vs guaranteed price. With a worked example.
What is the bid-ask spread and why does it matter?
What the bid-ask spread is, why it works as a hidden cost on every trade, why tight spreads matter, and when spreads widen. With a worked example.
Where should a beginner place a stop loss?
What a stop loss is, where beginners should place it (beyond a real level, not a random percent), how the 1-2% risk rule works, and what slippage means.
How does 10x leverage actually work in trading?
How 10x leverage works in both directions, what margin and liquidation mean in plain words, and a worked example showing how leverage amplifies losses.
How does portfolio diversification actually protect your money?
How diversification works in plain English: the eggs-in-one-basket logic, correlation without the math, a worked example, and where the limits are.
Tradebook teaches general, publicly-available trading concepts for educational purposes only. It is not financial, investment or trading advice, is not a broker, and does not place trades or handle real money. Trading involves risk.