Glossary
H
hangover (aka path dependence): letting the past color current decisions. Hangover happens when past events and outcomes influence current decision-making.
harami: a pattern of 2 candles of oppostie colors that suggests trend exhaustion. A large mother candle is followed by a smaller baby candle. The Japanese word harami means pregnant.
harbinger: something that signals or foreshadows an event; herald.
hazardous: brimming with risk.
HB: abbreviation for Hard to Borrow, the TradeStation term for stocks that incur a sizeable fee if sold short.
helicopter in: arriving suddenly and making hasty decisions without a decent appraisal of the situation.
high-frequency trading (HFT): a form of automated algorithmic trading, used to execute multitudes of orders at high speed, often in microseconds or less. HFT firms hold positions for very short periods: from fractions of a second to minutes. HFT profits from small price discrepancies, bid-ask spreads, and market-making rebates. HFT relies on low-latency infrastructure, such as co-location with exchange servers and direct data feeds.
hindsight: understanding a situation or event afterwards, especially owing to knowledge or insight gained subsequently.
hindsight bias (aka the knew-it-all-along effect): the tendency to see an event after it has occurred as predictable, despite scant basis to view it as such beforehand. Compare future bias.
HIPS: a stock with a price higher than $300 per share. Compare LOPS.
hope: to believe with some confidence.
hot hand: the bias or belief that success continues in a streak.
huckster: a misleading salesman.
hypnotize: to hold the attention; enthrall.