Old school lessons

"Bottom Fishing" Investing in stocks that are cheap because of a problem with the company or the economy. A bottom-fishing investor speculates that the stock's depressed price is temporary, will recover and make for a profitable investment. Bottom fishing is a risky strategy because the company's stock price is depressed for a reason and may not bounce back.

"Old Lady" An eighteenth century nickname for the Bank of England. The full name is the Old Lady of Threadneedle Street, which refers to the bank's location. The Bank of England is located in the middle of the city of London on Threadneedle Street.

"All the Boats Rise" When the tide comes in, all the boats rise. When the stock market is quickly rising, there is a tendency for most stocks to increase in value due to over-optimism. The opposite is, When the tide goes out, all the boats sink, which is due to over-pessimism.

"Castles in the Sky" When stock prices are extremely overvalued, and not justifiable by future increases in earnings.

"Field Bet" Buying a group of stocks in the same industry, most often when a group is unprofitable and oversold. The theory is that some companies may go bankrupt, but one or more may survive and incur large gains in the stock price.

"Misery Index" The Unemployment Rate and the Inflation Rate added together. The term was made famous by President Jimmy Carter during his 1976 presidential campaign.

"Crash" A large sell-off (-10% or more) in the stock market in a single day.

"Painting the Tape" When a group of investors illegally move a stock by trading it all at the same time. This happens every day, just watch the tape or most active stocks, but don't get sucked in. Day trader newsletter emails can cause such moves.

"Nifty Fifty" A group of 50 large cap overvalued stocks that greatly influenced the market in the 1960s.

"Closing Bell" When trading stops on the New York Stock Exchange and Nasdaq each day, a bell is rung to signal the event.

Read more:

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• The smartest way to invest your first $1000
• Should S&P500 be afraid from Friday 13th what the statistics look like