Every term a trader
needs to know.

An AI trading coach reviews a trader’s own recorded journal data and returns summaries, questions or possible patterns for the trader to verify against the original records.

Average win is the total winning result divided by winning trades; average loss is the total losing result divided by losing trades in the same defined sample.

Confirmation bias in trading is the tendency to search for, notice or interpret information in a way that supports an existing trade idea.

A consistency rule checks whether too much of your total profit came from one day or one trade. Your firm decides the formula, limit, and what happens when you are over it.

A daily drawdown limit is the official account floor that applies during one firm-defined trading day. Some firms call it maximum daily loss.

Drawdown is the amount an account falls from an earlier high to a later value. A prop firm drawdown limit is a separate rule that sets an official account floor.

Emotion tracking means noting how you felt at a trading moment and what you did next. The note gives context; it does not prove the feeling caused your result.

A trading equity curve is a line showing how a defined account value changes across time or trade order. Check whether it includes only closed results or also open profit and loss.

Trading expectancy is the average net result per trade in one defined historical sample. It does not predict the next trade.

FOMO in trading is the pressure to enter because a move appears to be leaving without you, even though part of your written plan is incomplete or has changed.

A funded trading account is a prop-firm account stage offered under an agreement. The word funded does not by itself prove that the account uses live capital.

Loss aversion in trading means the fear of a loss or giving back a gain may influence a decision more strongly than an equivalent gain.

An overall drawdown limit is the lowest account value allowed across the account period. The official floor may stay fixed or move under the program rules.

Overconfidence in trading is confidence that appears beside a decision to change or ignore a rule written before the trade.

Overtrading means moving away from the trading process written before the decision, such as taking extra entries, extending the session, weakening the setup or changing size.

Pattern recognition in a trading journal means finding the same recorded combination across a defined group of trades. It is a clue to inspect, not proof of what caused the result.

Position sizing is the calculation used to choose trade size so the estimated loss at the planned stop matches your chosen USD risk and exact account rules.

A pre-market routine is a check before your trading session. Write down your setup, account rules, risk and reasons to stay out before you consider an entry.

Total gross profit divided by the absolute value of total gross loss for a defined set of closed trades.

A prop-firm profit target is the net-profit objective for a specific evaluation phase. It is one condition in the full rule set.

A prop firm challenge is an evaluation stage with a program-specific rule sheet. Reaching the profit target alone may not complete every condition.

Revenge trading is a post-loss decision pattern in which recovering the lost money becomes the purpose of the next trade and part of the written plan changes or is ignored.

Risk per trade is the loss amount planned before one trade if the exit fills near the expected price. It is not a guaranteed maximum or a universal percentage.

A comparison between the loss planned at your stop and the gain planned at your target, commonly written as 1:2 or 1:3.

Rule-based trading means making trading decisions with conditions written before the moment of action and clear enough to check later from the record.

Setup compliance checks whether a recorded trade matched the setup conditions written before entry. It checks the decision record, not whether the trade won or lost.

A historic Sharpe ratio compares average return above a defined baseline with how much those returns varied during the same period.

A planned exit level or order instruction used to close a trade after a price trigger; the actual fill can differ from the stop price.

Tilt in trading is a period when frustration, anger or pressure appears beside a change from the process written before the decision.

Trade management means the decisions and actions taken after a position opens and before it is fully closed, compared with the management rules written before entry.

A trade review is a post-trade check that compares the written plan with the actual execution, confirms the recorded result, and ends with one evidence-based observation.

A trading journal records what you planned, what you actually did, and what happened, so the decision can be checked separately from the profit or loss.

A trading performance report summarises trades from one clearly defined period using records you can check. It keeps financial results separate from the process details you recorded.

A trading plan says what you trade, which setup lets you enter, how much you risk, and when you exit. Write it before trading; review each trade afterward.

The percentage of closed trades counted as wins in one defined sample.