There are many new terms to learn while using TradeStops. Below is our glossary.
- 52 week high – the high price that the stock traded for in the previous year
- 1 year change % – the change in market price over one year
- 3 year change % – the change in market price over three years
- 5 year change % – the change in market price over five years
- % Off High – The percentage amount that the latest close is below the highest close achieved by the symbol since the entry date. This can be impacted by dividends.
- Adjusted Entry Price – The adjusted purchase price per share by all corporate actions.
- Alert Description – A description of the alert type that has been added to the position.
- Alert State – How your position is performing in accordance to its alert.
- Annualized Gain – The percentage gain that the position would achieve in one year if it continues its current trend.
- At Risk – The amount of money at risk for the position. Calculated as: At Risk = (Latest Close – Stop Price)* Shares
- Average VQ – it is the average VQ for a position over the past 30 years
- Commissions – Fees charged by a broker to buy/sell positions.
- Currency – The form of currency the position is reported in.
- Dollar Gain per Share – The dollar amount gained/lost from the latest two close dates.
- Daily Gain Percentage – The percentage gained/lost from the latest two close dates.
- Daily Gain Total – The dollar amount gained/lost from the latest two close dates multiplied by the number of shares.
- Days Held – The number of calendar days since the position entry date.
- Days Triggered – The number of consecutive days the alert has been triggered.
- Dividends – The total sum of dividends paid per share since the position entry date.
- Dividends % – Total Dividends paid since the position entry date / Entry Price
- Drawdown – A drawdown is the peak-to-trough decline of an investment, fund, or commodity. A drawdown is usually quoted as the percentage between the peak and the subsequent trough.
- Enterprise Value – The sum of claims of all claimants: creditors (secured and unsecured) and equity holders.
- Entry Date – The date the position was purchased.
- Entry Price – The adjusted purchase price per share after splits and stock dividends.
- EPS – Earnings per share. It is calculated as follows: (Net Income – Dividends on Preferred Stock)/Average Outstanding Shares.
- EV/EBITDA – A comparison of enterprise value and earnings before interest, taxes, depreciation and amortization.
- EV/Revenue – A comparison of enterprise value and revenue.
- First Time Triggered – The date the alert was first triggered.
- Gain % ex Div – The percentage gain of the position since its purchase that does not include dividends. It is calculated as follows: Gain % ex Div = Total Gain / Total C/B
- Gain % w/Div – The percentage gain of the position since its purchase that includes dividends. It is calculated as follows: Gain % w/ Div = (Value + Div – Total CB) / Total CB
- Gain ex Div – The dollar gain of a position that does not include any dividends. It is calculated as follows: Gain ex Div = Value – Total C/B
- Gain w/Div – The dollar gain of a position that includes any dividends. It is calculated as follows: Gain w/ Div = Value – Total C/B + Dividends
- Gain/Shr ex Div – The latest closing price minus the adjusted purchase price and does not include dividends. Gain/Shr ex Div = Gain ex Div / Shares
- Gain/Shr w/Div – The latest closing price minus the adjusted purchase price with dividends. Gain/Shr w/ Div = (Gain w/ Div) / Shares
- Industry – The industry the equity is listed as being a part of.
- Kinetic VQ – When the VQ for a company rises above the long-term average VQ of the company, it’s an indication that there is extra “worry” about the company. This extra “worry” is like kinetic energy that builds up in the market.
- L/S – The position type. A long position is a one that you bought and profit as the price rises. A short position is a position that is “sold short” first with the intention to “buy to cover” at a lower price later on. The default status in TradeStops is long.
- Latest Close – The latest closing price for the position.
- Low Risk Runners – The Low Risk Runners consist of investment ideas that have already started solid uptrends and then pulled back in price just enough to still be interesting but not so much as to be in danger of collapse.
- Market Cap – The total value of the shares outstanding.
- Max Gain % – The maximum percentage gain on a closing basis that the position has achieved since entry.
- Max Profitable Close – The closing price at which the position had its maximum profit since entry. For short positions, this will be the lowest close.
- Max Profitable Close Date – The date on which the maximum profitable close occurred.
- Min Gain % – The minimum percentage gain on a closing basis that the position has achieved since entry.
- N/A – Data not available for this position.
- Net Income – The total earnings of the company. It is calculated by taking revenues and adjusting for the cost of doing business, i.e. depreciation, interest, taxes and other expenses.
- Notes – You can enter notes on a position in the position card. Notes can be used to help you remember specific information about your stock/option.
- Null – Contains no value.
- P/B – Ratio that compares the stock’s market value to its book value. The ratio is calculated as follows: Current Closing Price/Latest Quarter’s Book Value Per Share.
- P/E – Ratio that compares the stock’s current share price to its per share earnings. It is calculated as follows: Market Value per Share/Earnings per Share (EPS).
- PEG – A ratio used to determine a stock’s value while taking into account earnings growth over the past twelve months (TTM). Calculated as Price/Earnings (TTM) / Earnings per Share Growth (TTM).
- Portfolio – A grouping of financial assets. TradeStops offers syncronized and manual portfolios.
- Portfolio % – The percentage composition of a particular holding in a portfolio.
- Revenue – The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.
- Sector – The sector the equity is in.
- Shares – Units of ownership in a corporation or financial asset.
- Shares Outstanding – Number of stocks currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
- SMA (10) – The 10 day simple moving average. Calculated by adding the closing price of the last 10 trading days and dividing by 10.
- SMA (50) – The 50 day simple moving average. Calculated by adding the closing price of the last 50 trading days and dividing by 50.
- SMA (200) – The 200 day simple moving average. Calculated by adding the closing price of the last 200 trading days and dividing by 200.
- SSI – Stock State Indicators
- SSI Entry Signal – The SSI Entry Signal was designed to answer the question of when it’s safe to get back into a stock that was previously stopped out by its SSI Stop Loss. It has two basic components. It tells you when the trend is with you and when the position has had a strong bounce in the desired direction.
- SSI Yellow Zone – The Yellow Zone indicates that the position has corrected somewhat below a recent high, and it has not yet hit its SSI Stop Loss Price.
- SSI Red Zone – The stock has hit its SSI Stop Loss and is now in the Red Zone. This indicates that the stock has corrected more than its VQ% below a recent high. The stock is not behaving in a way that is usual based on its historical market trend.
- SSI Trend – Each stock has its own SSI Trend. The math behind the SSI Trend is complex but the concept is simple – find the moving average that was: (1) The best support for longer term trends, and (2) that provided the biggest bounces when price came down to touch support.
- Stock State Indicators – Dr. Smith’s proprietary indicators that identify the current state a stock relative to the stocks life cycle. For more information on the SSI click here.
- Symbol – An arrangement of characters (usually letters and/or numbers) that represent the stock/option you own.
- Tags – Tags are user-defined values that are added to a position. They are used for grouping positions.
- Total Assets – The sum of all cash, investments, furniture, fixtures, equipment, receivables, intangibles, and any other items of value owned by the company.
- Total C/B – The amount of money originally put into an investment before any growth or loss. This includes the initial investment as well as fees and commissions paid to obtain the investment. The cost basis is primarily used to calculate the capital gain or loss on an investment for tax purposes. It is calculated as follows:
- Total C/B for Stocks = (Split Adjusted Entry Price * Shares) + Entry Brokerage Commission
- Total C/B for Options = (Entry Price * Shares) + Entry Brokerage Commission
- Total Dividends – This is calculated as follows: Total Dividends = Total Sum of Dividends per share (split adjusted) since Entry Date * Shares
- Trailing Stop – A trailing stop is a stop price that is set at a defined percentage below the current market price of the position.
- Trigger Price (Stop Loss) – The price at which your alert will trigger, depending on the type of alert.
- Volatility Quotient – Dr. Smith’s proprietary algorithm that tells you how volatile it is. It will tell you how much room you can give a stock in order to not get stopped out too early. The lower the number, the more stable the movement of that stock. Higher percentages indicate the stock is more volatile in its market moves over time.
- VQ – Volatility Quotient
- Volatility Quotient % – The Volatility Quotient is the percentage that defines how volatile a stock is, based on its historical price action.
- VQ%– Volatility Quotient Percentage
- Volume – The total volume of shares or contracts for the most recently completed trading period.
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TradeSmith is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual or group of individuals. This TradeStops Blog is not intended to provide tax, legal or investment advice, and nothing on the TradeStops Blog should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Trading in such securities can result in immediate and substantial losses of the capital invested. Please refer to the terms and conditions.