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_HSX Lingo #2:
Trading Terms

This set of HSX words might seem rudimentary for most traders at HSX, but there are new players joining constantly and there are some players that are still lost when it comes to simple trading.
_HSX allows you to invest in stocks and profit from them in two ways.  You can invest in stocks so that you make a profit when the price goes up.  You can also do the opposite and invest in stocks so that you make a profit when the price goes down.  


Trading Terms


Below is a list of words that are commonly used at HSX to describe the different ways of trading:


Buy

You 'buy' stocks when you want to invest and profit when the price goes up.  If you 'buy' a stock for $10 and the price goes up to $15 you will make a profit.  If you 'buy' a stock for $10 and the price goes down to $5 you will lose money.  HSX players also use the term 'long' when describing which way they invested in a stock.


"I went long on movie XYZ when I heard it got a director."

"I am holding all 3 weekend openers long."



Sell

To get rid of stocks that you have bought, you need to sell them.



Short

You 'short' stocks when you want to invest and profit when the price goes down.  This is the opposite of buying a stock.  If you 'short' a stock for $10 and the price goes down to $5 you will make a profit.  If you 'short' a stock for $10 and the price goes up to $15 you will lose money.


"I am holding all 3 weekend openers short."

"I shorted that stock when I heard that actor ABC quit the project."



Cover

To get rid of stocks that you have shorted, you need to cover them.


These are the four most used words at HSX and every players need to understand them.  If you think a movie is worth more than its price you long/buy it.  If you think a movie's price will go down then you short it to make a profit.
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There was one player at HSX who had played for four years who did not know that shorting (investing for the price to go down) was possible.  That trader simply bought stocks and when their price was high enough, they would sell the stock and then invest in some other stocks.
_Other Terms

Here are a few more words that are commonly used on the HSX Boards when talking about trading:


Flipping

When you are invested in a stock one way and you decide to change and invest in the opposite way, this is called flipping.

You own 100,000 shares of Movie XYZ long.  Then somebody posts the news that the director has quit.  That kind of news is bad and the price of that moviestock will most likely start going down once other players read the news.  You want to make money from this news, so you sell (get rid) of all your shares, then you short (invest to go down) 100,000 shares.  Now as the price of that moviestock goes down, you make money because you are now invested short instead of long.  This is flipping.

"I flipped short when the price got too high."


Chuckage

Chuckage is a trading term that applies when you order a trade at one price, but the price of the stock changes by the time your order goes thru, causing you to invest in the stock at a different price than you ordered it at. This is common when flipping stocks, when investing in stocks with news posted on the HSX boards and when investing in penny stocks.

Here are some examples:

Somebody just posted on the HSX boards that movieXYZ just got greenlit.  It is priced at $50 so you decide to invest.  You place your order to buy max shares at $50.  By the time your order goes thru many other traders have also made trades for the same stock causing its price to rise to $50.10   When HSX executes your order, you are charged the $50.10 price.  That .10 difference is called "chuckage".

You see that a concept moviestock has dropped to .01  The only direction it can go is up!  You place an order at .01 but by the time your trade goes thru the price has changed to .05 and your order goes thru for that price.  Your expected profits just got eaten up by "chuckage".



Radar

Players like to buy just one share of stocks that they want to keep track of.  This way they do not lose any money and they do not have to constantly keep checking each stock page.  This is called radaring.  If you look at the stocks that the different HSX funds are holding you will see a lot of this.  Funds will usually have one share of each stock that qualifies to be traded in the fund.

You, as a player, can also radar stocks that you want to keep track of.  You can buy just one share to remind yourself that that is a stock you want to invest in when you get some free cash.  You can also buy just one share to keep track of the price.
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When I was a newer player, I used to sit down and look at all of the upcoming starbond adjusts for the next couple of months.  I had limited money, so I would radar the really good upcoming adjusts and when I got money freed up, I knew which starbonds to invest my money in.
_Hopefully this article helped some traders understand the difference between longing and shorting and how to use both of them to make more money for their HSX portfolios.

The 'HSX Lingo' series of articles is intended for helping new players at HSX to understand some of the terms that are used on the HSX Boards to describe the game and/or the industry.


HSX Lingo #1: Types Of HSX Stocks
 


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