Most people want to be an investor

But most people don't understand common investing terms.

Here are 10 terms that every investor should know:

1/ Dollar Cost Averaging

This is when you invest a fixed amount of money on a regular basis.

It does not matter what the stock market or individual stock price is doing.

When you use this method, you don't have to time the stock market.

2/ Cynical Stocks

These are stocks that move in cycles with the broader economy

For example, when the economy is booming, airlines and hospitality stocks are booming as well.

If the economy sucks, people don't have the extra money to purchase airline tickets.

3/ Book Value Per Share

This is a ratio that takes the firms common equity divided by its number of shares outstanding

A possible undervalued stock will have a higher book value per share compared to its underlying stock price.

4/ Intrinsic value

Intrinsic value is when you determine the true value of a stock price.

Once you determine intrinsic value, you can determine if the stock price is undervalued or overvalued.

Warren Buffett preaches finding the intrinsic value of a stock.