A day trader is an individual who buys and sells financial instruments within the same trading day, with the goal of profiting from short-term price fluctuations.
The Greater Fool Theory posits that even if a stock or the entire market is overvalued, investing in such assets can still be justified by the belief that there are always other 'fools' who will pay a higher price.
A long position is a financial strategy where an investor purchases a security or a derivative expecting that its price will rise over time, allowing for a profitable sale in the future.
Stock index futures are financial derivatives that blend traditional commodity futures trading characteristics with those of securities trading. They utilize composite stock indexes to enable investors to speculate on general market performance or to hedge long or short positions.
Tulipomania refers to the speculative bubble in Holland during the early 1620s, characterized by incredibly high prices paid for tulip bulbs. It is frequently used to describe investment price rises that are unjustified by the underlying fundamentals.
