Lesson 4Foundations2 minutes

Glossary & Cheat-Sheets

How to use a glossary as a fast reference and turn the course's key rules into a one-page cheat-sheet you actually apply.

What it is

A glossary is an alphabetical reference of the terms used throughout this course, each with a short, plain-language definition. A cheat-sheet is something different and complementary: a condensed, one-page summary of the rules and steps you want to apply in the moment, while you trade. The glossary answers "what does this word mean?"; the cheat-sheet answers "what do I do right now?".

Both exist for the same reason: working memory is limited, and markets move fast. You should not be trying to recall the precise meaning of slippage or the exact wording of your risk rule from memory under pressure. Look it up; that is what references are for.

How to use it

Use the glossary as a lookup tool, not a text to memorise cover to cover:

  • When you meet an unfamiliar term - say liquidity, expectancy, or VWAP - read its one-line definition first, then return to the lecture. The definition gives you just enough to keep reading without getting stuck.
  • Notice that many entries spell out acronyms: RSI is the Relative Strength Index, P/E is Price-to-Earnings, ATR is Average True Range. Learn the full name once and the shorthand stops being intimidating.
  • Treat consistent terminology as a feature. When you and your notes use the same words for the same ideas, your journal and your plan stay clear over time.

Use a checklist or cheat-sheet as an action tool. A good entry cheat-sheet is short enough to read in a few seconds and forces a yes/no answer on each line. For example:

  1. Is there a valid setup that matches my plan?
  2. Is my stop-loss defined and placed?
  3. Is the position sized to my fixed risk limit?
  4. Does the risk-reward ratio justify the trade?
  5. Have I checked the calendar for events that could blindside me?

If any line is a "no", you do not take the trade. The power of a checklist is that it converts vague confidence into objective, repeatable criteria - and it works precisely because you wrote it while calm and now simply obey it.

Key takeaway: Use the glossary to look up the meaning of a term the moment you need it rather than memorising everything, and keep a short entry checklist that forces a yes/no answer on every line - references and cheat-sheets exist to support clear, consistent decisions under pressure.

Strengths & limits

References are powerful because they offload memory and standardise language, which keeps your decisions consistent and your records readable. Their limit is that a glossary entry is a starting point, not deep understanding - knowing the one-line definition of leverage is not the same as respecting its risk. And a checklist only helps if it is short and honest; a bloated list gets skipped, and a list you do not actually follow protects nothing. Keep them lean, keep them visible, and use them every time.

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