Thesis
Definition · Level 14 · Markets & pitch
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The idea behind a trade in one sentence: what you expect to happen and why. Every other part of the pitch builds on it.
Example
Supplier orders are strong, so the company should beat on results.
Where Tradecraft teaches it
Level 14 · Markets & pitch, in the lesson “The two-minute trade pitch”: A worked pitch in five parts: idea, why now, how to express it, risk, and what would make you wrong.
Related terms
- CatalystThe event or date that should make the idea play out soon: results, a data release, a central-bank meeting.
- Trade expressionHow you act on the idea: shares, a call, a call spread, a future.
- Trade pitchA two-minute answer in five parts: idea (thesis), why now (catalyst), how (instrument), risk and size, and what would make you wrong (exit).
- What would make you wrongThe observable fact or price level that would show the idea has failed, stated before you enter: a guidance cut, a close below a level.
- “Are you sure?”Often a pressure test rather than a hint that you’re wrong: re-check in one line, then hold a correct answer, or fix a wrong one without fuss.
- Backed upDesk slang for yields rising, so bond prices falling.