R multiple
Risk & psychologyA measure of profit or loss expressed in multiples of the amount initially risked.
In plain terms
Makes trades of different sizes comparable and strips the emotion out of the rupee figure.
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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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Trailing stop
Technical analysisA stop-loss that moves up as price rises, typically a set ATR multiple below the highest close.
In plain terms
Lets winners run, and always gives back a slice at the top. That giving-back is the price of the runners.
ATR
Technical analysisAverage True Range — the typical distance a security travels in a period, including gaps.
In plain terms
How far this stock normally moves. Set stops in ATR multiples, not in fixed rupees.
Defensive
Fundamental analysisA business whose demand holds up regardless of the economy.
In plain terms
FMCG, pharma, utilities. Steadier earnings, higher multiples, lags in recoveries.