Glossary · Risk & money management
Revenge trading
Rushing into new trades to win back a loss. It usually means bigger size and worse setups.
Related terms
Overtrading
Taking too many trades or trading outside your plan, often out of…
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…
Equity curve
A chart of account value over time. A smooth, rising curve with…