Van Tharp Institute Glossary
The Van Tharp Institute Glossary is a comprehensive resource designed to help traders and investors understand the essential terminology and concepts related to trading psychology, systems development, and market analysis. Whether you’re a beginner or an experienced trader, this glossary offers clear definitions and insights into the principles that Dr. Van Tharp championed. By providing a deeper understanding of key terms, the glossary aims to enhance your knowledge and support your journey toward consistent and profitable trading. Explore the glossary to unlock the language of trading success.
Dampening Factor
A term developed by Ryan Jones for describing how to lower your position sizing after...
Debit Spread
An options trading strategy by which an investor buys one instrument and sells another related...
Degree of Freedom
A statistical term used to describe the quantity that equals the number of independent observations...
Delta
In fixed ratio position sizing, delta refers to the factor by which you determine how...
Delta Down
Delta can be used to both increase and decrease position sizing with fixed ratio position...
Delta Phenomenon
A theory developed and trademarked by Jimmy Sloman and marketed by Welles Wilder that purports...
Delta Up
Delta can be used to both increase and decrease position sizing with fixed ratio position...
Dev-Stop
A stop-loss criterion developed and copyrighted by Cynthia Kase that depends on the standard deviation...
Directional Movement
An indicator attributed to J. Welles Wilder using the largest part of today’s range that...
Disaster Stop
A stop-loss order to determine your worst-case loss in a position. See stop-loss order.
Discretionary Trading
Trading that depends on the instincts of the trader as opposed to a systematic approach....
Divergence
A term used to describe two or more indicators failing to show confirming signals.
Diversification
Investing in independent markets to reduce the overall risk.
Down-Quiet
One of the six types of markets in which the price is going down, and...
Down-Volatile
One of the six types of markets in which the price is going down, but...
Drawdown
A decrease in the value of your account because of losing trades or because of...