Every term a trader
needs to know.

An AI system that analyzes your trading journal data to provide personalized performance coaching — identifying patterns, weaknesses, and behavioral improvements.

The comparison between the average dollar amount of your winning trades versus your losing trades, revealing whether your winners outsize your losers.

The tendency to seek out information that supports your existing trade idea while ignoring evidence that contradicts it.

A prop firm requirement that no single trading day accounts for more than a certain percentage of total profits, ensuring sustainable rather than lucky performance.

The maximum loss a prop firm allows in a single trading day, typically 4-5% of account balance. Breaching it ends your challenge or funded account instantly.

The peak-to-trough decline in your trading account, measured as a percentage or dollar amount from the highest point to the lowest point before a new high.

The practice of logging your emotional state alongside each trade to identify how feelings like fear, greed, and frustration impact your trading outcomes.

A graph plotting your account balance over time, showing the trajectory of your trading performance including all wins, losses, and drawdowns.

The average amount you can expect to win or lose per trade, combining your win rate with your average win and average loss sizes.

The anxiety-driven urge to enter a trade because the market is moving without you, often leading to impulsive entries outside your trading plan.

A trading account provided by a prop firm with their capital, where the trader keeps a percentage of profits (typically 70-90%) after passing the evaluation.

The psychological tendency where the pain of losing money feels roughly twice as intense as the pleasure of gaining the same amount.

The maximum amount you are allowed to lose in a single trading day, typically set by your prop firm at 4-5% of account balance.

The maximum total loss allowed on your account from the starting balance or high-water mark, typically 8-12%. Breaching it ends your challenge or funded account.

An inflated belief in your trading ability, often following a winning streak, leading to increased risk-taking and abandonment of risk rules.

Taking more trades than your strategy calls for, driven by boredom, greed, or the belief that more trades equals more profit.

The ability to identify recurring behaviors, habits, and tendencies in your own trading by analyzing journal data over time.

A comprehensive analysis of your trading over a defined period, covering statistics, patterns, strengths, weaknesses, and actionable recommendations.

Determining how many lots or contracts to trade based on your account size, risk tolerance, and distance to your stop loss.

A structured preparation process completed before trading begins, including market analysis, level marking, news checks, and mental readiness assessment.

Total gross profits divided by total gross losses. A profit factor above 1.0 means you are making money; above 1.5 is considered strong.

The minimum profit required to pass a prop firm challenge phase, usually expressed as a percentage of account balance (e.g., 8% for Phase 1, 5% for Phase 2).

An evaluation phase where a trader must demonstrate profitability and risk management on a simulated account to qualify for a funded trading account.

Trading aggressively after a loss to "win back" the money, typically with larger positions or lower-quality setups, leading to even bigger losses.

The percentage of your account you are willing to lose on any single trade, typically 0.5% to 2% for prop firm traders.

The comparison between how much you stand to lose (risk) versus how much you stand to gain (reward) on a trade, expressed as a ratio like 1:2 or 1:3.

An approach where every trading decision — entries, exits, sizing, and session management — follows predefined written rules rather than subjective judgment.

The degree to which a trade matches your predefined setup criteria — whether you followed your own rules for entry, stop loss, and target.

A measure of risk-adjusted returns that compares your trading profits to their volatility. Higher Sharpe ratios indicate more consistent performance.

A predetermined price level at which you exit a losing trade to limit your downside, placed before or immediately after entering the trade.

A state of emotional frustration where a trader abandons rational decision-making, often triggered by a string of losses or a single large loss.

The decisions you make after entering a trade — adjusting stops, scaling in or out, trailing stops, or closing early based on changing market conditions.

A structured analysis of past trades to identify patterns, mistakes, and strengths — typically done daily, weekly, or monthly to drive continuous improvement.

A systematic record of every trade including entry/exit details, setup, emotions, reasoning, and lessons learned — the foundation of trading improvement.

A comprehensive written document defining your strategy, risk rules, entry/exit criteria, and session schedule — your complete rulebook for trading.

The percentage of your trades that close in profit, calculated as winning trades divided by total trades.