Bearish- The negative outlook on a stock, ETF, or overall market. An investor/trader expects the stock to decline over a given time.
Bullish- The positive outlook on a stock, ETF, or market. An investor/trader expects the stock to rise over a given time.
Dividend Reinvestment Plans (DRIP)- An investment technique where cash dividends are automatically reinvested back into a particular company at no (commission) cost and potentially at fractional shares. This technique also supports "dollar-cost averaging."
Dollar-Cost Averaging- An investment strategy that aims to reduce the impact on volatility in a particular security by periodically buying more shares when the price declines, and buying fewer shares when the price increases.
Emergent Savings- Amount of money strictly set aside to account for an unexpected loss or tragic event (i.e. job loss, death, casualties not covered by insurance, etc). The account should maintain at least 3-6 months worth of normal monthly income. If unable to initially maintain, work towards it by setting aside a portion of savings each month.
Exchange-Traded Fund (ETF)- A basket of securities that track a particular type of index. The performance has blended characteristics from a stock and mutual fund; It trades just like a stock (can buy/sell intraday during market hours) but has less volatility like a mutual fund.
Financial Independence- The status of having enough net income and worth to pay for your projected living expenses for the rest of your life without having to be employed or dependent upon others. This is perceived to be the ultimate financial status.
Financial Literacy- The understanding and possession of knowledge in which allows an individual to make sound financial decisions, where they can optimize or maximize the financial resources available. Many people are not financially literate; not because they aren't intelligent, but because they aren't exposed to or aware of all the beautiful resources available to make or save money.
Fear of Missing Out (FOMO)- This can relate to any financial market or product where you may think the price is so good to get in and it may go up and never return. This is often not the case.
Investor- An individual who has a long term buy/hold strategy towards the market. Traditionally, investors use company fundamentals and financial balance sheets to make their decisions to buy or sell.
Security- A financial instrument that can be traded within a particular stock market. Securities are normally classified as either a stock, bond, mutual fund, index fund, ETF.
Trader- An individual who has a short term strategy in which they take advantage of the swings within the market to achieve quick profits. Traditionally, traders use technical analysis and indicators to make their decisions to buy or sell.