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.
Largest Expected Equity Drop (LEED)
Used by Gallacher to describe a person’s risk limits. It refers to the largest drop...
Leverage
Describes the relationship between the amount of money one needs to put up to own...
Limit Move
A change in price that reaches the limit set by the exchange in which the...
Limit Order
An order to your broker in which you specify a limit as to how much...
Liquidity
The ease and availability of trading in an underlying stock or futures contract. When the...
Long
Owning a tradable item in anticipation of a future price increase. Also, see short.
Low-risk Idea
An idea that has a positive expectancy and is traded at a risk level that...