Simple liquids are traditionally defined as many-body systems of classical particles interacting via radially symmetric pair potentials. We suggest that a simple liquid should be defined instead by the property of having strong correlation between virial and potential energy equilibrium fluctuations in the N V T ensemble. There is considerable overlap between the two definitions, but also some notable differences. For instance, in the new definition simplicity is not a property of the intermolecular potential because a liquid is usually only strongly correlating in part of its phase diagram. Moreover, according to the new definition not all simple liquids are atomic (i.e., with radially symmetric pair potentials) and not all atomic liquids are simple. The main part of the paper motivates the new definition of liquid simplicity by presenting evidence that a liquid is strongly correlating if and only if its intermolecular interactions may be ignored beyond the first coordination shell (FCS). This is demonstrated by N V T simulations of structure and dynamics of atomic and molecular model liquids with a shifted-forces cutoff placed at the first minimum of the radial distribution function. The liquids studied are: inverse power-law systems (r −n pair potentials with n = 18, 6, 4), Lennard-Jones (LJ) models (the standard LJ model, two generalized Kob-Andersen binary LJ mixtures, the Wahnström binary LJ mixture), the Buckingham model, the Dzugutov model, the LJ Gaussian model, the Gaussian core model, the Hansen-McDonald molten salt model, the Lewis-Wahnström OTP model, the asymmetric dumbbell model, and the rigid SPC/E water model. The final part of the paper summarizes most known properties of strongly correlating liquids, showing that these are simpler than liquids in general. Simple liquids as defined here may be characterized (1) chemically by the fact that the liquid's properties are fully determined by interactions from the molecules within the FCS, (2) physically by the fact that there are isomorphs in the phase diagram, i.e., curves along which several properties like excess entropy, structure, and dynamics, are invariant in reduced units, and (3) mathematically by the fact that the reduced-coordinate constant-potential energy hypersurfaces define a one-parameter family of compact Riemannian manifolds. No proof is given that the chemical characterization follows from the strong correlation property, but it is shown to be consistent with the existence of isomorphs in strongly correlating liquids' phase diagram. Finally, we note that the FCS characterization of simple liquids calls into question the basis for standard perturbation theory, according to which the repulsive and attractive forces play fundamentally different roles for the physics of liquids.