Concepts
One idea at a time, explained in plain words and shown at work in a real week.
287 concepts, A to Z
Position limitWhy do markets cap how large a single position can be, and how does that cap behave when conviction is highest?Pre-committed ruleWhy should a trading rule be written before the market shows the outcome it will be judged on?Price discoveryHow does trading work out a price that buyers and sellers will both accept?Price gapWhat is the jump between one bar's close and the next bar's open, and why does it matter for fills and stop orders?Price impactHow far does a trade push the price against the trader, and why does heavy trading make that worse?Process versus outcomeWhy should a decision be judged by how it was made rather than by whether it made or lost money?Protective putHow does buying a put option set a floor on losses for someone who owns an asset?PullbackWhen a market that has been rising dips for a short time, how do we tell that dip apart from a real reversal?Quiet weekWhat does a week with a narrow trading range actually tell a trader, and what does it leave unknown?Random walkWhy does knowing last week's price change tell you almost nothing about next week's, and what does that imply for prediction?Range compressionWhat does it mean when a market's weekly high-to-low span keeps shrinking, and why do some traders treat it as stored energy?Range-bound marketWhat does it mean when a market keeps bouncing between the same price levels instead of trending?Realised volatilityHow do traders measure how wild a market actually was, rather than how wild it felt?RebalancingWhat does it mean to return a portfolio to its target weights after prices move, and why do traders bother?Recency biasWhy does a short run of strong weeks make the latest data feel like the whole picture?Recovery from a lossWhy does undoing a percentage loss require a larger percentage gain than the loss itself?Recovery within the weekWhat does it mean when a market hits a low mid-week but still finishes the week higher?RegimeHow do we recognise that a market has changed how it behaves, and why should risk be judged differently then?Regime filterHow do traders decide that the market has changed, and that a strategy should sit out until conditions return?Regression to the meanWhy do unusually strong or weak market weeks tend to be followed by more ordinary ones?Relative strengthHow do we measure whether one asset is beating another, rather than just rising itself?Relative valueWhat can you learn by pricing one asset against another instead of judging it alone?Relative weaknessWhat does it mean when one asset falls behind a similar asset, and how do traders measure the gap?Relief rallyWhat is a relief rally, and how does a rise inside a sell-off differ from a lasting turn?ReproducibilityIf I run an analysis again on the same data, why do I need to get exactly the same answer?ResistanceWhat is resistance, and what does it tell us when a price rise stalls at a level where sellers have shown up before?Return distributionWhat does a single weekly return hide about the spread of outcomes a market actually produced?Risk and uncertaintyWhat is the difference between outcomes with known odds and outcomes whose odds we simply do not know?Risk budgetHow much loss is a strategy allowed to take, and what happens when a week outgrows that allowance?Risk limit calibrationHow should a trader's risk limits be sized when calm weeks and fast weeks behave so differently?
Research notes on real market weeks, not investment advice. Sources: Binance spot BTCUSDT and ETHUSDT 1-hour candles and USD-M perpetual funding rates; weekly figures computed by WSTiger.