Risk

What is Beta?

How much a stock moves compared to the overall market

Full Explanation

Beta of 1 = moves with the market. Beta of 2 = moves twice as much as the market. Beta of 0.5 = half as volatile as the market.

Pro Tip

High beta stocks are riskier but can outperform in bull markets.

Margin

Borrowing money from your broker to buy more stocks

Stop Loss

An automatic sell order if a stock drops too much

Position Sizing

Deciding how much of your money to put in one stock

Short Selling

Betting that a stock will go down

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