Glossary · Risk & money management
Trading journal
A record of every trade with the reasons, screenshots and outcome. It is the main tool for finding and fixing mistakes.
Related terms
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…
Equity curve
A chart of account value over time. A smooth, rising curve with…