Do you ever hear people talking about the stock market and wonder what they're saying? Don't worry, you're not alone. The stock market can be a confusing place for beginners, especially when it comes to popular stock market sayings that most people outside of Wall Street don’t understand.

In this article, we will discuss some of the most common stock market sayings and what they mean. By understanding these phrases, you will be one step closer to becoming a successful investor.

1. “History repeats itself – or at least it rhymes” 

Some people believe that history repeats itself, so by understanding past market trends, they can better predict what will happen in the future. Others believe that while there are similarities between past and present trends, the future is never exactly like the past. 

No matter what your opinion is, it's important to be aware of both historical patterns and current conditions when making investment decisions. 

2. “Cut your losses early” 

This phrase means that you should sell a stock as soon as it starts to decline in value, to minimize your losses. 

For example, let's say you bought shares of Company XYZ at $100 per share. The stock then declines to $90 per share. At this point, you would "cut your losses" by selling the stock and realizing a loss of $10 per share ($100-$90). 

If the stock continues to decline and is trading at $80 per share when you sell, your loss will be greater ($100-$80=$20 per share). Many investors use stop-loss orders to automatically sell a stock when it reaches a certain price (usually below the purchase price), to limit their losses. 

3. "Cut your losses and let your winners run" 

This phrase is similar to "cut your losses early," but with a twist. In addition to selling losing stocks quickly, this saying also suggests that you hold on to winning stocks for as long as possible. This will allow you to maximize your profits. 

4. “Don’t put all of your eggs in one basket”

Diversification is key. This phrase means that you should not invest all of your money in one stock or company. This is because if the stock goes down in value, you will lose all of your investment. 

By diversifying your portfolio, you can reduce the risk of losing money if one stock declines in value. Diversification can be achieved by investing in different industries, sectors, and asset classes. 

It's important to remember that no investment is completely risk-free. However, diversifying your portfolio can help reduce the overall risk of your investment portfolio. 

5. “Don’t invest in something you don’t understand” 

This Warren Buffett quote is often used to warn investors about the dangers of investing in something without doing their research. If you don't understand how a stock works, you could lose a lot of money if it goes down in value. 

It's important to do your own research and understand what you're investing in before putting any money into the stock market. If you don't understand something, ask a financial advisor or an investment professional. 

6. "Dead cat bounce" 

A dead cat bounce is a small, short-lived recovery in the price of a stock or other asset after a sharp decline. The name comes from the idea that even a dead cat will bounce if it falls from a high enough height. While the stock can 

continue to rebound after a dead cat bounce, it's important to remember that this is not always the case. 

7. "Catching a falling knife" 

This phrase is used to describe the act of buying a stock that is in the middle of a sharp decline. The name comes from the idea that it is very difficult (and dangerous) to catch a falling knife

Catching a falling knife can be a risky move, as the stock may continue to decline after you purchase it. It's important to do your research and have a solid investment plan before buying a stock that is in the middle of a decline.

8. Buy low sell high 

This is probably the most common stock market saying. It simply means that you should buy stocks when they are low in price and sell them when they are high. However, this is easier said than done. 

9. We like the stock 

This is a quote from Jim Cramer that turned into a meme. It is usually something that is said as a joke. For example, if there is no logical reason for buying a stock, but it is going up in price, someone might say "we like the stock." 

10. It’s a market of stocks, not a stock market

This saying means that there are many stocks in the market, and each stock is its own entity. The stock market is not one monolithic entity. 

11. Bulls make money, bears make money, pigs get slaughtered 

This phrase means that investors who are too aggressive (pigs) and take on too much risk will ultimately lose money. It's better to be a bull or bear, which are both more conservative investment strategies. Bulls make money, bears make money, pigs get slaughtered remains one of the most common Wall Street sayings to warn investors about risk.

12. The time to buy is when there’s blood on the streets 

This saying is often attributed to billionaire investor Warren Buffett. It means that you should buy stocks when there is panic and fear in the market. This is because stock prices are usually low during these times, and you can find some great deals. 

13. It’s different this time

This is something that overly optimistic investors say right before a stock market crash. They believe that the rules have changed and that the market will continue to go up, regardless of what is happening. 

This phrase is often used as a warning sign, as it indicates that an investor may be about to make a bad decision. 

14. The trend is your friend

This phrase means that you should invest in the trend. If a stock is going up, it's likely to continue going up. However, if a stock is going down, it's likely to continue going down. 

However, there is a corollary to this popular Wall Street saying which is: the trend is your friend until it bends. Be careful when taking the trend is your friend at face value.

15. In bear markets, stocks return to their rightful owners 

This saying means that in a bear market, stocks will go back to the investors who are willing to hold them for the long term. This is because stock prices usually rebound after a sharp decline. 

16. Buy the rumor, sell the news 

This phrase means that you should buy a stock when there is speculation about good news, and sell it when the news is actually announced. This is because the stock price usually goes up in anticipation of good news, and then falls after the news is actually announced. 

17. It’s dead money 

This phrase means that a stock is not doing anything and is not likely to go up any time soon. This is usually said about a stock that has been stagnant for a long period. 

18. Don’t fight the Fed

This phrase means that you should not try to trade against the Federal Reserve. The Fed has a lot of power and influence over the stock market, so it's usually best to just follow their lead. 

19. Everybody is a genius in a bull market 

It's easy to make money in a bull market when stock prices are rising. This saying means that anyone can make money during these times. People will often feel like their success is attributed to their intellect when in reality it's just luck. 

20. Don’t fight the tape 

This phrase means that you should not try to trade against the overall direction of the market. It's usually best to just follow the trend. Fighting the tape comes from the days when people actually used to trade stocks using ticker tape, and it was common for traders to read the tape.

21. Markets can remain irrational longer than you can remain solvent 

This quote is from economist John Maynard Keynes. It means that the stock market can continue to go up even when it appears to be overvalued and that investors need to be careful not to get caught in a bubble. 

22. Nobody ever went broke taking profits 

This phrase means that you should take profits when you have them. It's better to sell a stock and lock in your gains than to wait and hope that it will go up even more. 

23. Past performance does not guarantee future results 

This phrase is a warning that just because a stock has done well in the past, it doesn't mean that it will continue to do well in the future. History is not always an indicator of future success. 

24. Sell in May and go away 

This phrase means that you should sell your stocks in May and then not buy them again until after the summer. This is because the stock market usually has a summer slump. It's also a quote that explains how the market goes through predictable economic cycles. 

For example, after a recession, there is typically a period of growth, followed by a period of stagnation. 

25. This is a stockpicker’s market 

This phrase means that it's a good time to pick stocks. This is because there are opportunities to make money if you choose the right stocks. 

26. The easy money has been made 

This phrase means that the stock market has already gone up a lot and it's getting harder to make money. This is because the easy money is the money that was made when the market was going up. When the market is going down, it's harder to make money. 

27. Investing should be more like watching paint dry or watching grass grow

This quote from Paul Samuelson reminds investors of the importance of having patience. Rather than being impatient and day trading, long-term investors know that they need to be patient and wait for their investments to grow over time. This phrase means that you need to be patient when investing to make money. 

28. If you don't understand it, then put your life savings into it 

This quote by Peter Lynch phrase is a clear reminder that you should only invest in something if you understand it. This is because there are a lot of risks associated with investing in something you don't understand. 

29. Bull markets climb a wall of worry 

As the market rises, there will always be concerns and worries. This phrase means that even if you are doing well, you should watch out for potential problems. 

30. Never throw good money after bad 

Don't invest in companies that are losing money. This phrase means that you should only invest in companies that are doing well. You should also be careful about investing in companies with unethical business practices. 

31. The market is always right 

This saying means that the market will always correct itself in the long run. This is because the market is made up of all the buyers and sellers in the world, and they will always eventually reach an equilibrium price. It doesn't matter what your opinion is. Ultimately, the market will decide. 

32. The market is a discounting mechanism 

This phrase means that the stock market prices are in future events. This is why it's important to pay attention to news and earnings reports, as they can give you clues about where the market is headed. 

33. Hindsight is 20/20 

It's easy to see what happened after the fact. It's important to remember this when analyzing the stock market, as it's easy to make decisions with the benefit of hindsight. When looking forward, it can be much more difficult because there are so many variables at play. 

34. It’s just a correction 

This is something that investors will say to reassure themselves when the market falls. It's important to remember that the stock market is always fluctuating, and a dip is not necessarily a bad thing. However, sometimes it's much more than just a correction and this optimism can blind people to the larger problem. 

35. A rising tide lifts all boats 

This saying is often attributed to President John F. Kennedy, and it means that when the economy is doing well, everyone benefits. This is because as the economy grows, so do company profits. When companies are doing well, their stock prices usually go up. 

36. I'm not worried, I'm a long-term investor 

This phrase is something that is usually said after a significant price decrease. They may not be worried or they can be saying this just to calm themselves down. 

Long-term investors usually have a different perspective than short-term investors. They may not be as worried about the market fluctuations. 

37. This is a bear market, not a bull market 

This phrase is used to describe the stock market when it's going down. It's important to remember that the market is always changing, and what goes down will eventually come back up. 

38. I got in early and got out early 

This phrase is used to describe someone who made a lot of money by investing in a company before it became popular. They were able to sell their shares at a much higher price than they bought them for. 

39. I'm just waiting for the dust to settle 

This means that there is a lot of uncertainty in the market. The investor does not have a clear indication of what is happening in the market.

40. Picking up pennies in front of a steamroller

This quote by Nassim Taleb refers to investors taking too many risks to make small returns, and it is often associated with arbitrage trades, which risk large amounts of money to make small gains.

41. I'm going to wait for the market to bottom out 

This phrase is used by investors who think that the market is going to go down even further. They want to wait until it reaches its lowest point before they start buying again. 

42. Buy the dip 

When there is a dip in the market, some investors will see it as an opportunity to buy. They think that the stock is undervalued and will eventually go back up. However, sometimes buying the dip when it keeps dipping is not the best option. 

43. This stock is a bargain 

Value investors are always looking for stocks that they think are undervalued. They believe that they will be able to sell them for a higher price in the future. Bargains can be found in all types of markets, both good and bad. 

44. Ride the wave 

By riding the wave, investors are trying to take advantage of the momentum. They're buying stocks that are going up and selling them when they reach their peak. This can be a risky strategy, as it's difficult to predict when a stock is going to peak. 

45. I'm waiting for the pullback 

This phrase is used by investors who think a stock is overvalued. They're waiting for the price to go down before they buy it. This can be a difficult strategy, as the investor may miss out on a lot of gains if the stock continues to go up. 

46. I'm going for broke

This phrase is usually said by someone who is taking a lot of risks. They're investing all of their money in hopes of making a big return. This is a very risky strategy and should only be done by experienced investors. 

47. When the tide goes out, you see who's swimming naked 

This is a phrase that was made famous by Warren Buffet. It means that when the market is going down, you see which companies are not prepared. This is because their financials are not as strong as they appear to be. 

48. I'm in it for the long haul 

This phrase is used by investors who are in it for the long term. They're not worried about the short-term fluctuations of the market. They're more focused on the long-term growth of their investments. 

49. Best house in a bad neighborhood 

This is about the best stock within a bad industry. By investing in the best company within a bad industry, you're more likely to see growth even when the overall market is going down. However, the industry is still risky, so this should only be done by experienced investors. 

50. Buy into weakness, sell into strength 

This is one of the most common pieces of advice you'll hear from experienced investors, and for good reason. It's difficult to do, but if you can buy stocks when they're down and out of favor and then sell them when they've recovered and are back in favor, you'll make a lot of money. 

51. There's always a bull market somewhere 

Even when the overall stock market is in a slump, there are always sectors and industries that are doing well. If you can find those areas, you can make money even when the market as a whole is struggling. 

52. Cash is king

When it comes to the life of a business, cash is king. That's because businesses need cash to pay their bills, expand their operations, and so on. Without cash, a business will eventually go under. 

53. Yield chasers will get burned 

Investors who chase after high-yielding stocks often end up getting burned. That's because these stocks are often high-risk, and their high yields are often not sustainable. 

54. Reap what you sow 

This is a saying that you'll hear a lot in the world of investing. It means that if you invest in good companies, you're likely to reap the rewards in the form of high dividends and capital gains. But if you invest in bad companies, you're likely to end up with nothing. 

55. Don't marry your stocks 

This piece of advice is similar to the one above. It means that you shouldn't get too attached to any one stock. If a stock goes down, don't be afraid to sell it and move on. 

56. If you’re going to panic, panic early 

This means that if you’re going to sell your stocks in a panic, do it as soon as possible. The earlier you sell, the less money you’ll lose. 

57. Nosebleed levels 

This refers to stocks that are trading at very high prices. They’re called nosebleed levels because you could get dizzy if you look at them for too long! 

58. On a roll 

If a stock is on a roll, it means that it’s doing well and its price is going up. Momentum is key in the stock market, and stock on a roll has it. 

59. It's downhill from here

This phrase is used to describe a stock that has been on a downward trend and is expected to continue going down. 

60. Keep an eye on this one 

This phrase is used to describe a stock that is worth watching because it has the potential to go up or down. If an investor says this, they likely have it on their watchlist. Companies with a lot of potential usually have a higher risk but also a higher reward. 

61. Priced to perfection 

This saying is used when a stock is trading at what some believe to be its fair value. In other words, the current price reflects all of the positive news about the company and its prospects. Investors who believe a stock is priced to perfection typically don't think it has much upside potential. 

62. Put your money where your mouth is! 

This saying is used to describe when an investor does not put their money into a stock they're bullish on. For example, if an analyst is bullish on a stock but doesn't own any shares, some might say they're not putting their money where their mouth is. 

63. Pull the trigger 

This adage is commonly used to encourage an indecisive investor. For example, if an investor is waiting for the perfect time to buy a stock, they might say they're waiting to pull the trigger. 

64. Ride it out 

This phrase is used to explain an investor that holds onto a stock during a period of volatility or decline in price. For example, if a stock is going through a rough patch but an investor believes in the long-term prospects of the company, they might say they're going to ride it out. 

65. I’m cautiously optimistic

This is probably the most common phrase you’ll hear when it comes to stocks. And there’s a good reason for that. The stock market is inherently risky. There’s always the potential for losses, no matter how well a company is doing. However, a company that is showing signs of growth is worth investing in. 

66. Don't beat a dead horse 

This phrase is often used about stocks that have been declining for a while. There’s no point in investing in a company that isn’t doing well. 

67. Take a wait-and-see approach 

By being patient and waiting to see how things play out, you avoid the urge to sell when the market is down and buy when it's up. With more time, you can receive more data that can help inform your decision. This approach can help you make sounder investment choices instead of being reactive and making rash decisions based on emotion. 

68. Sitting on the sidelines 

This phrase is used to describe when someone isn’t investing in the stock market. They may be “waiting for the perfect time” to get in or they may have been burned before and are now too scared to invest. Whatever the reason, sitting on the sidelines means you’re not participating in the market and you’re missing out on potential profits. 

69. Don't be a sheep 

This is probably the most important piece of advice for investors. When everyone is buying, it can be tempting to do the same, but you need to resist the urge. Just because everyone else is doing something doesn't mean it's a good idea. 

Do your own research and make sure you're comfortable with an investment before putting any money into it. This is especially true when it comes to hot stocks that everyone is talking about. Just because a stock is getting a lot of attention doesn't mean it's a good investment. 

70. Whale watching

This phrase is used to describe the practice of following big investors and copying their trades. It can be a successful strategy, but it’s also risky. If you don’t know what you’re doing, you could end up losing a lot of money. 

71. Sniping 

This is a term used by day traders and it refers to placing trades at the last minute in an attempt to make a quick profit. It’s a risky strategy that can often result in losses. By targeting small gains, you may miss out on bigger opportunities. 

72. Penny Pitching 

Penny stock investors are known as "penny pitchers." They're looking for stocks that are trading at a low price per share in the hopes of making a quick, profitable trade. Penny stocks are high-risk investments, so this saying is a warning to tread carefully. 

73. Pump and Dump 

"Pump and dump" is a scheme whereby traders buy up a lot of shares in a stock to drive up the price, then sell their shares at an artificially high price. When you hear this term, beware! 

74. Rome wasn't built in a day 

This saying is often used with patience when it comes to investing. And it's true, you shouldn't expect to become a millionaire overnight. It takes time to research investments and some companies take years to show returns. But if you're patient and invest wisely, your portfolio can grow significantly over time. 

75. What goes up must come down 

This saying is a reminder that the stock market is constantly fluctuating. Just because a stock goes up doesn't mean it will continue to go up. And conversely, just because a stock goes down doesn't mean it will continue to go down. It's important to stay diversified and not put all your eggs in one basket. 

76. Volatility is your friend

This is a saying that is often used by day traders. Volatility refers to the ups and downs of the market and how it can fluctuate. Day traders often like volatile markets because they can make money off of the fluctuations. 

77. Needle in a haystack 

This saying is used to describe how difficult it can be to find a good investment. With so many companies and stocks to choose from, it can be hard to know where to invest your money. But if you do your research and look for undervalued stocks, you can find some great investments. 

78. Diamond in the rough 

When an investor finds a great company among a sea of poor performers, they've found a diamond in the rough. 

79. This company is a hidden gem 

Similarly, this saying is used to describe a company that may be undervalued or not well-known but has great potential. 

80. Trying to time the market is a fool's errand 

Trying to predict when the market will go up or down is a losing battle. The best strategy is to invest for the long term and ride out the ups and downs. 

Conclusion 

By understanding these phrases, you will be one step closer to becoming a successful investor! These sayings provide valuable insights into how the stock market works and what factors to consider when making investment decisions. 

Remember to always do your own research before investing, and don't forget to bookmark this page to reference back to these sayings in the future!