Finelo Blog

Stock Gap Trading: Learn the Concept & Risk Controls

Stock gap trading is the practice of planning trades around price “gaps”: areas on a chart where a security opens significantly higher or lower than the previous bar, with no trades between the two prices. In simple terms, traders look for…

Spaced Repetition Trading: Learn the Concept & Risk Controls

Spaced repetition is a learning method that schedules reviews of small, focused units—such as flashcards, chart-recognition drills, or rule prompts—at increasing intervals. The goal is to help you retain the pattern-recognition, risk math…

Risk Reward Ratio Calculator: Formula, Examples & Interpretation

A risk–reward ratio calculator shows how much you stand to gain compared with how much you could lose on a trade. Enter an entry price, a stop-loss, and a target price; the calculator returns the reward divided by the risk so you can…

Risk of Ruin Calculator: Definition, Examples & Key Limits

A risk-of-ruin calculator estimates the probability that a trading or betting account will fall to a chosen loss threshold, such as total loss or a major drawdown. It does this using assumptions about per-trade risk, win rate, payoff ratio…

Revenge Trading: Learn the Concept & Risk Controls

Revenge trading is taking a new trade mainly to recover a recent loss, rather than because your strategy or edge says to trade. If you feel compelled to “win back” a loss, pause for a predetermined cool-down period, record what happened…

Recency Bias Trading: Learn the Concept & Risk Controls

Recency bias trading happens when recent market events carry too much weight in buy, sell, or position-sizing decisions. It can look like chasing winners after a rally, selling after one bad day, increasing risk after a few successful…

Questions to Ask AI About Trading: Learn the Concept & Risk Controls

AI can help traders organize data, test ideas, and monitor risk, but its usefulness depends heavily on the questions you ask. A vague prompt may produce a confident but incomplete answer. A precise prompt can surface assumptions, data gaps…

Profit Factor Calculator: Definition, Examples & Key Limits

A profit factor calculator measures trading-system profitability by dividing total gross profits by total gross losses for a set of closed trades. In simple terms, it compares how much a strategy made on winning trades with how much it lost…

Price Volume Divergence: Definition, Examples & Key Limits

Price–volume divergence occurs when price and trading volume move in different directions. For example, price may make a new high while volume falls, suggesting the rally has less participation than earlier moves and may weaken. The same…

Position Sizing Calculator: Definition, Examples & Key Limits

A position sizing calculator helps translate a risk rule and stop-loss choice into a trade size, such as shares, contracts, or lots. In one sentence: it converts how much of your account you are willing to risk on a trade into the number of…

Paper Trading vs. Real Trading: Detailed Comparison

Paper trading is simulated trading that uses virtual funds and often simplified execution logic; it lets you practice without risking real capital. Live (real) trading executes orders with real capital and real-time market connectivity.…

Paper Trading in a Falling Market: Learn the Concept & Risk Controls

Paper trading in a falling market is most useful when it is treated as rehearsal, not prediction. With virtual funds, you can practice order entry, position sizing, stop rules, bearish setups, hedges, and review routines before real capital…