Stag

When we go somewhere stag, it means we go there alone. When we go to a stag party, it means we’re going to a bachelor party. When we go somewhere on a stag, it means we ride there on a male deer. (That’s definitely one way to make an entrance, right?)

In the financial world, the term “stag” has nothing with bachelor parties, deer, or our forever aloneness. Nope, in the financial world, a “stag” is a day-trader.

Basically, stags spend their days making quick trades (and hopefully quick profits) depending on how the market is moving. They’re usually not emotionally invested in their trades; they’re just trying to capitalize on small price changes hither and thither, because a bunch of small price changes could add up to big financial payoffs. And while this might sound like a lot of fun to the casual investor, beware: being a stag is not for the faint of heart. It requires a lot of attention to detail...a lot of time spent looking at prices, models, indicators, expert research, etc., and a lot of liquidity to get—and keep—a successful day-trading career going. Also, since stags tend to work solo, there’s no health insurance, sick days, or employer-matched 401(k) going on.

It can actually be a really risky way to make a living. But for those who have an eye for trading, and who can keep themselves from getting hung up on the emotional side of buying and selling, those risks can be...lucrative.