139+ Trading Terms Explained

The inability to pull the trigger on a trade because of excessive analysis, conflicting signals, or fear of being wrong. The trader keeps ad

Confirmation bias is the tendency to seek out, notice, and remember information that supports a trade idea you've already formed — while sub

Trading discipline is the consistent application of your predefined rules — entries, stops, targets, position sizing, maximum daily loss — r

FOMO — Fear of Missing Out — is the emotional pressure that drives traders to chase moves they've already missed, entering at suboptimal pri

Loss aversion is the psychological tendency to feel the pain of a loss approximately twice as intensely as the pleasure of an equivalent gai

The cognitive bias where a trader overestimates the accuracy of their predictions, the quality of their edge, or their ability to handle ris

Overtrading is taking too many trades — whether from boredom, greed, frustration, or an inability to sit on your hands — leading to degraded

Patience in trading is the discipline to wait for your exact setup criteria to be met before entering — resisting the urge to force trades i

Revenge trading is the impulsive act of placing new trades immediately after a loss — or multiple losses — in an attempt to quickly recover

Tilt is a trading state of emotional dysregulation — usually triggered by a string of losses, a missed trade, or a violation of your plan —