First of all, big thank you to all the friends who checked out the blog yesterday!  Thanks to some valuable feedback there is a new glossary page up on the site.  There you’ll find explanations of phrases I commonly use on the site and I’ll keep adding as new phrases come up.

For now it features definitions such as:

Long –  Buying a stock you assume will increase in value. I.e. You buy Apple at $500 and sell it for $520 (and make a $20 profit).  This is the most basic investing move.  Winning strategy: Buy low, sell high.

Short – Selling a stock with the agreement to buy it back at a different price.  Let’s say I buy Apple at $520 now, assuming the price is going to fall.  I get $520 up front, but I have to buy it later so I have something to sell.  If the price drops to $500, I make a $20 profit. Winning strategy: Sell high, buy low.

Bull – Bulls are optimistic about prices going up.  A bull market is one where prices are going up and sentiment is good.  Longs like bull markets.  Reminder: a bull’s horns point upwards.

Bear – Bears are pessimistic and assume prices will fall.   A bear market is one where prices are going down and sentiment is bad. Shorts like bear markets.  Reminder: A bear drops to the ground.

Hope everyone has a wonderful holiday weekend!

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