Trading Glossary

Plain explanations of mental, risk-management and trading terms.

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Risk Management
Strategic Stop-Loss (Thesis Invalidation)

A strategic cost for capital survival

⚖️
Risk Management
Asymmetric Risk Management (Position Sizing)

The skill that ensures survival, not just high win rates

😰
Psychology
FOMO & Herd Bias

Hasty entries caused by the absence of rules

💢
Psychology
Revenge Trading

Impulsive gambling triggered by loss aversion

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Methodology
Quantitative & Qualitative Trading Journal

A tool to objectify yourself and turn habits into data

📐
Methodology
Statistical Edge (Positive Expectancy)

The only mathematical basis for long-term profitability

🧠
Psychology
Prospect Theory (Loss Aversion Asymmetry)

Losses hurt more than gains feel good

📉
Risk Management
Asymmetry of Recovery (Mathematical Trap)

The deeper the loss, the exponentially harder the recovery

🏗️
Methodology
Choice Architecture (Nudge Theory)

Control behavior through environment, not willpower

🎲
Psychology
Outcome Bias (Resulting)

Evaluate yourself on process quality, not outcomes

🔄
Psychology
Neuroplasticity & Habituation (Basal Ganglia Shift)

Repetition rewires the brain, making rule compliance unconscious

※This diagnosis is for self-understanding only. It is not investment advice or a solicitation. All trading decisions are your own responsibility.