Expectations
Risk & psychologyWhat you believe a plan will deliver, and over what period.
In plain terms
Judge year one on whether you built a process, not on the return.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Expectations investing
Fundamental analysisAn approach that starts from the expectations embedded in a price rather than from a valuation forecast.
In plain terms
Turns "is this a good company?" into "can this company grow 25% a year for ten years?" — a far more answerable question.
Implied expectations
Fundamental analysisThe growth and returns a current share price must already be assuming to be justified.
In plain terms
The required run rate. Rather than forecasting, you extract the market’s forecast and judge whether the company can hit it.
Social pressure
Risk & psychologyThe pull of other people’s expectations on a financial decision.
In plain terms
Naming a stock for a relative means you own the outcome permanently.
Tail risk
Risk & psychologyThe risk of a rare, very large loss well outside normal expectations.
In plain terms
What mean reversion trades away its high win rate for. The one position that never comes back is the whole risk in that style.
Low volume node
Technical analysisA price level on a volume profile at which almost nothing has traded.
In plain terms
An air pocket. Nobody holds a position there to defend or to escape, so price travels through it quickly — useful for setting expectations about speed, not for choosing an entry.