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Vultures and Dead Cats Bouncing - Trader slang is unique

Barry Dumas

Traders are a unique bunch of people and in the fast-paced world of the financial markets, traders use slang words to express meaning and save time to maximize profits.

Let’s look at a couple of my top trader expressions...

1# Dead cat bounce

Probably one of the most popular terms, a dead cat bounce is when there is a temporary market recovery after a significant downward trend. The recovery is usually short lived, and the market continues to fall again.

2# Babysitting

Babysitting is expressed when you are holding a losing position for a long time, hoping the price will turn in your favour so you can get out of the trade at breakeven. #Tip – get rid of your losing trades as soon as possible.

3# Pump and dump

This is the illegal practice of misleading or encouraging investors to run up the price of a stock and as soon as the price is souring the stock is dumped to the determent of the investors.

4# Scalper

This is a type of trading strategy that involves high frequency traders taking small quick wins on a continues basis.

5# Tanking

This term is expressed when a market or stock takes a sharp term for the worst.

6# Nut

Usually expressed as “my profits didn’t even cover my nut today” Nut referring to the total cost of broker commissions on your trades.

7# Melting

Melting your account refers to a trader taking large losses in a short period of time. The losses are so large that the trader cannot continue to trade as his account has “melted “away.

8# Learning curve

The amount of time it will take a new trader to figure out the mechanics of the trading game before he/ she becomes a profitable trader.

9# Vultures

Vultures are usually high-risk investors or traders looking to buy low value or struggling stocks in the hopes of major turnarounds in those companies.

10# Stick

If an instrument you bought runs up a “stick” it refers to a full point (or 1 Rand) or a couple of “sticks” (a couple of Rand) in value.


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