A

Avg R:R (Average Risk-to-Reward)
How much you aim to make compared to how much you risk losing on a trade.
Example: risking $1 to make $2 = 1:2 R:R.

B

Bias (Bull / Bear / Neutral)
Your directional opinion on a market:

Bull: Expect price to go up

Bear: Expect price to go down

Neutral: No clear direction yet

BTC Dominance
A measure of how much of the total crypto market value belongs to Bitcoin. Used to judge crypto risk appetite.

C

Capital Protection
The practice of prioritizing not losing money over making money. Staying in the game matters more than big wins.

Catalyst
The main reason a market or stock might move (earnings, inflation data, technical setup, news).

CPI (Consumer Price Index)
A key inflation report showing how prices for everyday goods change over time.

Confirmation
Waiting for proof that a move or trend is real before trading it.

Consolidation
When price moves sideways instead of trending up or down.

Consumer Discretionary
Companies selling non-essential products (retail, entertainment, travel).

Consumer Staples
Companies selling everyday necessities (food, household items).

Crypto Correlation
How closely crypto prices move in relation to stocks or other markets.

D

Defensive Sector
Industries that tend to hold up better during market stress (utilities, healthcare, staples).

Drawdown / Max Drawdown
The largest drop from a peak to a low point in your trading results.

E

Earnings
Company financial reports showing profit, loss, revenue, and outlook.

Earnings Acceleration
A period where many companies report earnings in a short time, increasing volatility.

Earnings Reaction
How price responds after earnings are released (not the earnings themselves).

Emotional Discipline
The ability to follow your rules even after wins, losses, or stress.

Entry Criteria
Specific conditions that must be met before entering a trade.

Equities
Stocks or shares of companies.

ETF (Exchange-Traded Fund)
A basket of stocks or assets that trades like a single stock.

Exposure
How much money you currently have at risk in the market.

F

Failed Breakout
When price moves above a key level but quickly falls back, trapping traders.

Fake Move
A price move that looks important but quickly reverses.

Follow-Through
When price continues moving in the same direction after a breakout or catalyst.

FX (Foreign Exchange)
The market where currencies (like USD, EUR) are traded.

G

Gap / Gap Behavior
When price opens significantly higher or lower than the previous close.

Growth Sector
Companies expected to grow faster than average (often tech).

H

Holiday Liquidity
Reduced trading volume around holidays, which can cause unreliable price moves.

I

Index (SPX, NDX, RTY)
Market benchmarks:

SPX: S&P 500

NDX: Nasdaq 100

RTY: Russell 2000 (small-caps)

Inflation Sensitivity
How strongly markets react to inflation data.

Invalidation
The price or condition that proves your trade idea is wrong.

J

Journaling
Writing down trades, thoughts, mistakes, and lessons to improve over time.

L

Late Reporters
Companies that release earnings later than most.

Liquidity
How easily something can be bought or sold without large price changes.

M

Macro Data
Big economic reports like inflation, jobs, and interest rates.

Mean Reversion
The idea that price tends to return to its average after extreme moves.

Metrics Review
Analyzing numbers like win rate, drawdown, and risk-to-reward.

N

Narrative
The story markets tell (e.g., “rates are falling,” “AI growth”).

Notes
Personal observations or reminders related to a trade.

O

Overtrading
Taking too many trades, often due to emotion or boredom.

P

Peak Earnings Season
The busiest part of earnings season when most companies report.

PPI (Producer Price Index)
Inflation data measuring price changes at the producer level.

Post-Holiday Repricing
Markets adjusting after reopening from a holiday.

Prediction
Guessing what will happen without confirmation (discouraged).

R

Rate Expectations
Market beliefs about future interest rate changes.

Real vs False Breakout
A real breakout holds and continues; a false breakout fails quickly.

Retrace
When price pulls back after moving strongly in one direction.

Revenge Trading
Trading impulsively to “win back” losses.

Risk Level (Low / Medium / High)
How much loss a trade could realistically produce.

Risk-On / Risk-Off
Market mood:

Risk-On: Traders favor stocks and crypto

Risk-Off: Traders favor safety (cash, bonds)

S

Scaling Out
Gradually taking profit instead of exiting all at once.

Sector Rotation
Money moving from one industry sector to another.

Semiconductors (Semis)
Companies that make computer chips; often lead tech trends.

Small-Caps
Smaller companies, often more volatile.

Stop-Loss / Stop Placement
A pre-planned exit to limit losses.

Surprise Risk
Unexpected news or earnings results.

T

Target(s)
Price levels where you plan to take profit.

Technology Follow-Through
Whether tech stocks continue moving after earnings.

Trade Case Study
A detailed breakdown of one trade from entry to exit.

Trade Management
How you handle a trade after entering (stops, exits, size).

Trend Confirmation
Evidence that a trend is real and likely to continue.

U

USD Trend Confirmation
Verifying whether the U.S. dollar’s move is strong or fading.

V

Validation Month
A period where ideas are tested and proven right or wrong.

Volatility
How fast and wildly prices move.

Volatility Products
ETFs or tools designed to track or hedge market volatility.

W

Win Rate
The percentage of trades that end in profit.

Y

Yield Repricing
Markets adjusting prices based on changes in interest rate expectations.