What a 'prompt' actually is — vs. system prompt, vs. context window

Prompt, system prompt, context window — three words people mix up. Knowing the difference saves you hours.

The walkthrough

1. Three words people mix up. Knowing the difference saves you hours.
2. User prompt. The thing you type.
3. That's a user prompt. Plain request. One turn.
4. System prompt. The personality.
5. Loaded once. Stays for the whole conversation.
6. User prompt + system prompt = the actual answer.
7. Context window. The working memory.
8. Everything in the conversation lives in there. System prompt. Past turns. Your new question.
9. When it fills up, the oldest stuff falls out. The bot forgets.
10. Bigger window = more memory. That's why context size matters.
11. Stack from bottom up: system → history → current prompt → response.
12. Your business knowledge lives in the system prompt. Your folder gets pulled in too.
13. That's how Claude Code uses CLAUDE.md. Reads it into the system prompt automatically.
14. Your data + system prompt = a bot that knows you. Not generic slop.
15. Tokens cost money. More context = more tokens = bigger bill.
16. Tip: keep your system prompt tight. The folder fills the rest.
17. Now you know the three. Prompt. System prompt. Context window.
18. Feed YOUR business data into the window. That's the moat.
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