Glossary · Risk & money management
Overtrading
Taking too many trades or trading outside your plan, often out of boredom or to recover losses.
Related terms
Revenge trading
Rushing into new trades to win back a loss. It usually means…
Trading plan
Written rules for what you trade, when, how you enter and exit,…
Backtesting
Testing a strategy on historical data to see how it would have…
Black swan
A rare, unpredictable event with extreme market impact, such as…
Correlation
A measure from −1 to +1 of how closely two pairs move together.…
Drawdown
The fall from an account’s peak to its lowest point before a new…