Trading psychology and process quiz

1. Which feeling often makes traders exit good trades too early?

1. Greed
2. Fear
3. Boredom
4. Hunger

2. Which feeling often makes traders chase moves or trade too big?

1. Greed
2. Calm
3. Sleepiness
4. Patience

3. Do experienced traders feel fear and greed?

1. No, never
2. Only beginners do
3. Only on Fridays
4. Yes, everyone does, and rules help them act well anyway

4. What is the first step to not acting on a feeling?

1. Trading faster
2. Doubling your size
3. Noticing it and naming it
4. Closing the app forever

5. Price dips toward your stop and you feel frozen. What does the plan say?

1. Let the stop do its job as planned
2. Move the stop further away
3. Add more to the trade
4. Close the chart and hope

6. 4 wins of 2R and 6 losses of 1R. What is the total?

1. -2R
2. +8R
3. +2R
4. +14R

7. Same trades, but fear cuts the 4 winners at +0.5R. What is the total now?

1. +2R
2. -4R
3. 0R
4. -6R

8. Why write your exit rules while calm?

1. Calm rules make prices move
2. Exchanges require it
3. Written rules promise wins
4. Fast moves make it easy for feelings to take over decisions

9. Your journal shows greed tags often come after two wins. What is a good response?

1. Add a rule, such as a size check after two wins
2. Ignore it
3. Trade bigger after two wins
4. Stop tagging feelings

10. Which action shows the plan in charge, not fear or greed?

1. Moving the target further because it is going well
2. Exiting at the planned target or stop
3. Closing early because a candle looked scary
4. Adding to a loser to average down

11. What is revenge trading?

1. Following your plan after a loss
2. Rushing into a trade to win back a loss
3. Taking a break after a loss
4. Writing in your journal

12. What does a cool-down rule do?

1. Puts a pause between a loss and the next trade
2. Makes you trade faster
3. Doubles your size
4. Removes your stops

13. Why does revenge trading make losses bigger?

1. It uses smaller sizes
2. It follows the plan closely
3. It trades less often
4. It often skips the plan and raises the size

14. Which is a sample cool-down rule?

1. After a loss, trade twice as big
2. Never take a loss
3. After 2 losses in a row, stop for the day
4. Trade until you win

15. Risk 100, then doubled to 200, 400 and 800, and all four lose. What is the total loss?

1. 800
2. 1,500
3. 400
4. 1,600

16. That 1,500 loss is what percent of a 10,000 account?

1. 1.5%
2. 8%
3. 15%
4. 150%

17. Which journal note suggests tilt?

1. A new trade two minutes after a loss, in a market you never trade
2. Trades spaced out as planned
3. The same size on every trade
4. A full checklist before each trade

18. Four losses at a steady 100 each on a 10,000 account. What percent is lost?

1. 15%
2. 1%
3. 40%
4. 4%

19. Why keep the same risk per trade after a loss?

1. Your judgement can be shaky right after a loss, and bigger size magnifies mistakes
2. Losses always stop after one
3. Bigger size wins more often
4. The next trade is always a winner

20. What is the most reliable way to make a cool-down stick?

1. Willpower alone
2. Trading on a different app
3. A timer or daily loss limit that blocks new trades
4. Deleting your journal

21. What is overtrading?

1. Taking one planned trade
2. Using a stop-loss
3. Taking many trades that don't meet your plan
4. Reading the news

22. What does every trade add?

1. Costs, such as fees and the spread
2. Free money
3. A guaranteed win
4. Nothing at all

23. Which setups should you take?

1. Any setup when bored
2. C-grade setups late in the day
3. Whatever friends trade
4. Only top-grade setups that meet your plan

24. What is a daily trade limit?

1. A rule to trade as much as possible
2. A maximum number of trades you allow yourself each day
3. A rule for bigger size
4. A limit on wins

25. In SEBI's study, what share of intraday traders making more than 500 trades a year lost money?

1. 8%
2. 80%
3. 50%
4. 20%

26. Two trades a day at +0.2R each after costs, for 20 days. What is the total?

1. 4R
2. 20R
3. 8R
4. 40R

27. Eight extra trades a day average -0.2R after costs, for 20 days. What do they cost?

1. -32R
2. -8R
3. -16R
4. -3.2R

28. How can adding more trades turn a winning trader into a losing one?

1. More trades always win more
2. Costs fall as you trade more
3. Extra weak trades have a negative average after costs and drag the total down
4. The exchange penalizes frequent traders

29. It is late, nothing has met your plan, and you feel you must trade. What fits the plan?

1. Take no trade
2. Take a B setup
3. Take a C setup at half size
4. Lower your rules for today

30. What is the best way to see whether C-grade setups hurt you?

1. Guess
2. Ask a friend
3. Trade them bigger
4. Track the average result by setup grade in your journal

31. When should you write your trade plan?

1. After you exit
2. Before you enter
3. Only if you lose
4. Never

32. What does a pre-trade plan include?

1. Only the entry
2. Just a feeling
3. Setup, entry, stop, target and size
4. The news headline

33. Mid-trade, price wiggles and you want to move your stop further away. What does the plan say?

1. Keep it, unless a written rule allows a change
2. Move it, feelings matter most
3. Remove the stop
4. Double the size

34. Which change is allowed?

1. Moving the stop wider because you are scared
2. Adding to a loser
3. Closing early because you are bored
4. Moving the stop to breakeven after +1R, if your plan says so

35. 8 wins at +2R and 12 losses at -1R. What is the total?

1. -4R
2. +16R
3. +4R
4. +8R

36. 8 wins at +1R and 12 losses at -1.5R. What is the total?

1. -10R
2. +10R
3. -4R
4. 0R

37. Why do emotions shrink average wins and grow average losses?

1. They change the market
2. They push you to exit winners early and widen stops on losers
3. They lower costs
4. They slow the chart

38. An unplanned change made money this time. How should you log it?

1. As a new rule
2. As proof that feelings work
3. Don't log it
4. As a rule break to review, even though it won

39. You followed the plan on 18 of 20 trades. What is your adherence?

1. 90%
2. 18%
3. 20%
4. 80%

40. Why is 'profit this week' a poor way to judge plan-following?

1. Profit is never important
2. Weeks are too long
3. One week's result can be luck, while adherence shows your process
4. Profit is always negative

41. What is a trading journal?

1. A price chart
2. A news app
3. A list of winners only
4. A record of every trade you make

42. Which field lets you compare trades of different sizes fairly?

1. Your mood
2. Result in R
3. The date
4. The chart colour

43. Why take before and after screenshots?

1. To post online
2. To make the file bigger
3. They make reviews faster and show what you saw
4. Exchanges ask for them

44. Which trades should you log?

1. Every trade, especially the losers
2. Only winners
3. Only big trades
4. Only trades you liked

45. Entry 250, stop 245 and exit 260. What is the result in R?

1. +1R
2. +2R
3. +10R
4. -2R

46. A month has 3 wins of +2R and 9 losses of -1R. What is the total?

1. +3R
2. 0R
3. +6R
4. -3R

47. Why does memory get trading results wrong?

1. It keeps exciting moments and forgets boring mistakes
2. It is always exact
3. It only remembers losses
4. Charts change memories

48. A forex trade risked 20 pips and hit its stop. What is its result in R?

1. -20R
2. -2R
3. -1R
4. 0R

49. Roughly how many entries do you need before grouping them tells you much?

1. 1
2. 3
3. 5
4. 30 or more

50. Your journal shows your worst results come on Fridays. What is a good next step?

1. Check the Friday trades in detail, then consider one specific rule
2. Trade bigger on Fridays
3. Stop journaling on Fridays
4. Ignore it

51. What is a bias?

1. A chart indicator
2. A thinking shortcut that can trick you
3. A type of order
4. A trading fee

52. Seeing only the news that agrees with your trade is called what?

1. Confirmation bias
2. Anchoring
3. Recency bias
4. Diversification

53. Clinging to an old high as the 'real' price is called what?

1. Recency bias
2. Confirmation bias
3. Hedging
4. Anchoring

54. Giving your last three trades too much weight is called what?

1. Anchoring
2. Leverage
3. Recency bias
4. Confirmation bias

55. A stock fell from 160 to 100. What rise would take it back to 160?

1. 37.5%
2. 40%
3. 60%
4. 160%

56. Which habit helps against confirmation bias?

1. Reading only posts you agree with
2. Writing one fact against your trade before entering
3. Trading faster
4. Ignoring your stop

57. Why judge a setup on 30 or more past cases?

1. A few trades can be mostly luck
2. 30 is a lucky number
3. Exchanges require it
4. Fewer cases are always better

58. Does knowing about biases make you immune to them?

1. Yes, completely
2. Only for experts
3. Only on weekends
4. No, which is why you build defences into checklists and rules

59. Your last 3 trades lost, but 40 logged trades show 16 wins at 2R and 24 losses at 1R. What is the total?

1. -8R
2. 0R
3. +8R
4. +16R

60. A classic study found that estimating by adjusting from an anchor leads to what?

1. Perfect answers
2. Systematic, predictable errors
3. Pure random luck
4. Faster trades

61. What is loss aversion?

1. Losses feel stronger than equal gains
2. Loving to lose
3. A type of chart
4. Never trading

62. What is the disposition effect?

1. Selling losers quickly
2. Following a trailing stop
3. Holding losers too long and selling winners too soon
4. Trading only on Mondays

63. In studies, roughly how much stronger does a loss feel than an equal gain?

1. The same
2. Ten times
3. Half as strong
4. About twice

64. Which exit fits a plan?

1. Closing a winner at the first tiny profit out of fear
2. Exiting at the stop, the target or a written trailing rule
3. Moving a stop lower to avoid a loss
4. Holding a loser and hoping

65. Winners average +0.5R and losers average -2R. What does that suggest?

1. Great discipline
2. Perfect targets
3. Stops that are too tight
4. The disposition effect is probably at work

66. 5 wins at +0.5R and 5 losses at -2R. What is the total?

1. -7.5R
2. +2.5R
3. -10R
4. 0R

67. What does a trailing stop do?

1. Removes your stop
2. Moves your stop behind price as it moves your way
3. Moves your stop further from price
4. Doubles your size

68. Why is moving a stop further away so risky?

1. It lowers costs
2. It is required after a loss
3. It turns a small planned loss into a bigger unplanned one
4. It raises the win rate for sure

69. A study of 10,000 brokerage accounts found that investors did what?

1. Sold losers faster than winners
2. Showed a strong preference for selling winners rather than losers
3. Held everything forever
4. Never traded

70. Why use automatic stops instead of willpower?

1. The pull to avoid a loss is strong, so rules that remove the choice work better
2. Willpower is not allowed
3. Automatic stops promise profits
4. Willpower lowers costs

71. Can a trade that followed every rule still lose?

1. No, never
2. Yes, luck plays a part
3. Only on Fridays
4. Only with big size

72. What should you grade each trade on?

1. Only profit
2. How exciting it felt
3. Process: setup, size and plan followed
4. What friends said

73. You skipped your stop and still won. Which box is that?

1. Good process, good outcome
2. Good process, bad outcome
3. Bad process, bad outcome
4. Bad process, good outcome

74. Which box is the most dangerous to learn from?

1. Bad process, good outcome
2. Good process, bad outcome
3. Good process, good outcome
4. Bad process, bad outcome

75. A method wins 40% at 2R and loses 60% at 1R. What is its average per trade?

1. +0.8R
2. +0.2R
3. -0.2R
4. +2R

76. Each trade has a 60% chance of losing. What is the chance that the next 3 trades all lose?

1. 60%
2. 6%
3. 180%
4. 21.6%

77. What is variance?

1. The natural spread of results around the average
2. A trading fee
3. A type of stop
4. A chart pattern

78. Why does bad process with a good outcome hurt later?

1. It lowers costs
2. It improves future stops
3. It is impossible
4. It rewards a habit that will eventually cause a big loss

79. Your method loses 60% of its trades. After 3 good-process losses in a row, what is the best response?

1. Check the journal, because this streak is normal about 1 time in 5 for this method
2. Change the whole method
3. Skip stops next time
4. Double the size to win it back

80. Why is your process score the part you control?

1. Prices obey your process
2. Process promises profit
3. You choose how you decide, but not what price does next
4. Outcomes are always good

81. What is a pre-trade checklist?

1. A list of winning trades
2. A short list you tick before every trade
3. A news feed
4. A chart pattern

82. Which item belongs on a trading checklist?

1. Your favourite song
2. The weather
3. Phone battery level
4. Stop placed where the idea is proven wrong

83. One checklist item fails. What happens to the trade?

1. Skip it
2. Take it anyway
3. Take it bigger
4. Ask a friend

84. Who runs a checklist before take-off?

1. Nobody
2. Only passengers
3. Pilots
4. Only new pilots

85. Account 15,000 and risk 1%. What is the risk amount?

1. 1,500
2. 150
3. 15
4. 1.5

86. Risk 150 dollars, entry 75 and stop 72. How many shares?

1. 50
2. 20
3. 75
4. 150

87. Why keep a checklist to five to seven items?

1. Seven is lucky
2. Exchanges require it
3. Short lists promise profit
4. Long lists get skipped, and a skipped list catches nothing

88. In the hospital study, what happened to the complication rate after the checklist?

1. It rose
2. It stayed the same
3. It fell from 11.0% to 7.0%
4. It fell to zero

89. Your journal shows the 'events' item caught 5 mistakes and a 'chart colour' item caught none. What do you do?

1. Keep events and replace the colour item with one that catches errors
2. Delete the events item
3. Add more colour checks
4. Stop using the checklist

90. Which routine order makes sense?

1. Trade first, check the calendar later
2. Journal before trading and skip reviews
3. Review only after big wins
4. Check the calendar and levels, take only planned setups, then journal and review

91. Do good traders have losing streaks?

1. No, never
2. Only beginners
3. Yes, every trader does
4. Only in crypto

92. What is a streak plan?

1. A plan to trade more
2. A rule for what you do after several losses in a row
3. A news filter
4. A target price

93. Which is a sensible streak rule?

1. After 3 losses, double the size
2. After 3 losses, remove your stops
3. After 3 losses, try a new market
4. After 3 losses, cut the size in half

94. At a 50% win rate, how often does a streak of 5 or more losses appear somewhere in 100 trades?

1. About 8 times in 10
2. Almost never
3. Exactly once
4. Only if you break rules

95. If 60% of trades lose, what is the chance that the next 3 trades all lose?

1. 60%
2. 21.6%
3. 6%
4. 1.8%

96. Trader B risks 100, 200, 400, 800 and 1,600 through a 5-loss streak. What is the total loss?

1. 1,600
2. 2,000
3. 3,100
4. 500

97. Which question belongs in a streak review?

1. Which coin will go up next?
2. How can I trade faster?
3. Who can I blame?
4. Did I follow my rules on these trades?

98. What are the three causes to sort a streak into?

1. Rule-breaking, a changed market or normal variance
2. Monday, Tuesday or Wednesday
3. Fees, taxes or spreads
4. Charts, news or friends

99. When should you return to full size after cutting it?

1. After the very next win
2. Immediately
3. Never
4. After a set number of rule-following trades, as your plan says

100. Why does changing strategy after every short streak hurt you?

1. New strategies cost money to download
2. Short streaks are normal, so you never stay with a method long enough to learn if it works
3. Exchanges ban it
4. It lowers your costs

101. What is overconfidence?

1. Being careful
2. Feeling too sure of yourself
3. Following the plan
4. Taking a break

102. Which is a warning sign after a winning streak?

1. The same size as always
2. Full journal entries
3. Bigger size and fewer checks
4. Running the checklist

103. What should happen to your risk per trade after wins?

1. It stays the same unless a written rule changes it
2. Double it
3. Triple it
4. Remove the stop

104. Can a winning streak be luck?

1. No, wins are always skill
2. Only in crypto
3. Only for beginners
4. Yes, especially over a short run

105. At a 50% win rate, what is the chance of winning the next 5 trades?

1. 50%
2. About 3%
3. 25%
4. 10%

106. 4 wins of +200 and 2 losses of -100. What is the total?

1. +600
2. +400
3. +800
4. -200

107. In the household study, how did the most active traders do against the market?

1. They beat the market
2. They matched the market
3. They earned 11.4% a year against the market's 17.9%
4. They lost everything

108. Why did the doubling trader lose money despite 4 wins in 6 trades?

1. Wins were too small
2. Costs were too high
3. The stop was missing
4. The biggest bets came right after the streak and lost

109. Which size rule is sound?

1. Risk the same percentage of the current balance
2. Double after each win
3. Go all in after 5 wins
4. Add a new market after a hot week

110. What did the study's authors say could explain the heavy trading?

1. Bad luck
2. High fees only
3. Market closures
4. Overconfidence

111. How often does the review in this lesson happen?

1. Once a year
2. Once a week
3. Every minute
4. Never

112. What is a 'leak'?

1. A winning setup
2. A chart pattern
3. A news source
4. A habit that keeps costing you

113. Which is a specific rule?

1. Be more disciplined
2. Trade better
3. No new trades 15 minutes before high-impact news
4. Try harder

114. How many rules should you change after one review?

1. One
2. All of them
3. Five
4. None ever

115. 3 wins at +2R and 7 losses at -1R. What is the total?

1. +1R
2. -3R
3. +6R
4. -1R

116. The week was -1R, and trades before news cost 3R. Without them, what would the week have been?

1. +2R
2. -4R
3. -1R
4. +3R

117. 3 wins out of 10 trades is what win rate?

1. 3%
2. 13%
3. 30%
4. 70%

118. Why judge a new rule over several weeks?

1. Rules need time to load
2. One week is too small a sample to tell a better rule from luck
3. It is required by law
4. It makes reviews shorter

119. Why is 'be more disciplined' a weak rule?

1. It is too long
2. It uses numbers
3. No one can check whether you followed it
4. It is about news

120. What belongs on a weekly scorecard?

1. Total R, win rate, average win and loss, rule breaks, best setup and biggest leak
2. Only profit in money
3. Only your favourite trades
4. Next week's predictions

121. How is the challenge week scored?

1. On profit only
2. On speed
3. On following your plan and rules
4. On the number of trades

122. Which is a trap in the challenge week?

1. A fast breakout that tempts you to chase
2. A calm, planned setup
3. A finished journal
4. A checklist

123. You missed a fast move. What fits the plan?

1. Chase it at any price
2. Double your size
3. Remove the stop
4. Wait for a pullback or skip, as your rule says

124. After two losses in a row, what does a cool-down rule say?

1. Trade bigger
2. Pause or stop for the day
3. Trade faster
4. Switch markets

125. 18 of 20 decisions followed the plan. What is your adherence?

1. 18%
2. 80%
3. 90%
4. 20%

126. A trade risked 150 when your maximum is 100, and it won. How is it scored?

1. A risk-rule break
2. A great trade
3. Not counted
4. A bonus

127. What is an if-then rule?

1. A price alert
2. A chart pattern
3. A tax rule
4. A pre-written response, like 'if I missed the move, then I skip'

128. Why is profit over ten rounds a poor score?

1. Profit never matters
2. Ten rounds is too long
3. Losses are hidden
4. Over so few rounds, profit is mostly luck

129. A news surprise gaps price past your stop. What does your process score depend on?

1. How much money you lost
2. Whether your size and plan were correct before the gap
3. Whether you guessed the news
4. How many trades you took after

130. Why write if-then rules before the week starts?

1. So decisions are made before the pressure arrives
2. To make the week longer
3. The app requires poetry
4. So you can break them later