What Is a Trading Plan?
A trading plan records the market thesis, entry and exit rules, invalidation, size, risk, evidence, and execution constraints before a trade is placed.
Read definitionClear explanations of the market, macro, and trading terms used across MyTrade Academy.
A trading plan records the market thesis, entry and exit rules, invalidation, size, risk, evidence, and execution constraints before a trade is placed.
Read definitionA trading range is a horizontal consolidation state where prices oscillate between an upper resistance ceiling and a lower support floor.
Read definitionA trading risk policy is a written set of risk limits and rules: per-trade risk, account-level stops, pause rules, and hard conditions. It is personal and explicit.
Read definitionA trading rule maps observable data to an action or no-action decision in a way another person can reproduce.
Read definitionA trading session represents the active business hours of a specific regional financial hub, dictating localized liquidity, volatility, and trading participation.
Read definitionA trading stress test applies severe but explicit adverse assumptions to a position or portfolio to examine losses and operational vulnerabilities beyond the normal plan.
Read definitionA trailing stop is a dynamic exit order that automatically advances as price moves favorably at a fixed distance, protecting open profits while letting winners run.
Read definitionA trendline is a diagonal line connecting swing points to describe the pace of a trend. Useful as a pacing guide — and meaningless as a reversal signal by itself.
Read definitionAn adjusted price series modifies historical prices to account for corporate actions so returns can be analyzed on a consistent basis.
Read definitionAn AI hallucination is generated content that sounds plausible but is unsupported, fabricated, or inconsistent with the underlying source.
Read definitionAn earnings report is a company's periodic update on revenue, profit, cash flow, and often its outlook. Markets compare the report with prior expectations, not just with the previous quarter.
Read definitionEconomic data are often revised after the first release. Learn why prior values change and why revisions can alter the market's interpretation of a trend.
Read definitionAn economic surprise is the gap between an actual data release and what markets expected. Learn why surprises matter more than judging a number in isolation.
Read definitionAn entry trigger is the precise, observable, and binary event that prompts immediate order submission into the market.
Read definitionAn ETF is a fund whose shares trade on an exchange. ETFs can hold stocks, bonds, commodities, or other exposures, so the wrapper is not the same thing as the risk inside it.
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