Glossary · Risk & money management
Trading plan
Written rules for what you trade, when, how you enter and exit, and how much you risk. It removes in-the-moment decisions.
Related terms
Trading journal
A record of every trade with the reasons, screenshots and outcome.…
Risk per trade
The share of your account you lose if a trade hits its stop loss.…
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.…