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Trading System
FundamentalsA complete framework that combines a trading strategy with risk management rules, position sizing, portfolio-level controls, and execution procedures. A system covers every decision a trader must make.
Related Terms
Trading Strategy
A documented set of rules defining how to find setups, enter positions, manage risk, and exit trades.
Risk Management
The overall framework for limiting losses and protecting trading capital.
Position Sizing
Determining how many shares or contracts to trade based on account size and risk per trade.
Pre-Trade Checklist
A systematic list of criteria that must be satisfied before entering any trade.