1. Research and Trade #1
Introduction

2. Basic Terminology Security Long Short Index
Any asset that can be traded and holds value
Long
Buying, or holding, a security
Short
Selling a security (short selling is a bit more advanced)
Index
A set of securities representing a market
UIT? ETF?

3. Basic Terminology Ask Bid Spread Volatility
Average last take from a seller (what the buyer pays)
Bid
Average last take from a buyer (what the seller gets)
Spread
The difference between the ask and bid price
Volatility
The relative amount a security moves in a given period

4. Terms in Action

5. Important Terms Yield Margin/Leverage Short Selling Day Trading
Income returned on an investment
Margin/Leverage
Borrowed money used for investing
Short Selling
Borrowing a security to sell
Day Trading
Buying and selling a security within a day.
*Subject to PDT guidelines

6. Day Trading?

7. Types of Accounts

8. Brokerage Employee Retirement Cash Margin Derivatives IRA 401(k)
Payments must be made before settlement
Margin
Borrowing money and securities are allowed
Derivatives
Can trade futures and options
IRA
Anyone can open, low contribution limit
$5,500 (under age 50)
$6,500 (age 50 or older)
401(k)
Offered by employers, high contribution limit ($18,500)
Double taxation occurs if over contribution limit (6%)

9. Other Types of Accounts
Employer Retirement
Sep IRA
Contribution limit ($55,000 or 25% of income, whichever is lower)
Solo 401(k)
$55,000 contribution limit (under 50)
$61,000 (over 50)
Managed
Managed by a certified financial professional
Unmanaged
Not

10. Kahoooot!