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Quiz · world 11
Why traders lose quiz
165 questions with answers, from the why traders lose lessons. Answer in your head, then open the answer.
1. In 1,814 real setups in our library, how often was the stop hit before the target?
- About 1 in 10
- About 1 in 3
- About half the time
- Almost never
Show the answer
About half the time. 54% hit the stop first and 33% hit the target first. Stops getting hit is normal, so the size of each loss is what you control. Lesson ›
2. Bitcoin moves about 0.7% in a normal hour. What is a 0.3% stop on an hourly chart like?
- A safe stop
- A coin toss: hit about as often as the target
- A stop that is never hit
- A stop with plenty of room
Show the answer
A coin toss: hit about as often as the target. On 12,926 real Bitcoin hours, a 0.3% stop and a 0.3% target were each hit first about 41% of the time. Lesson ›
3. Why do so many stops sit just under the last low?
- Exchanges put them there
- It is the obvious spot, so many traders pick it
- It is required by law
- It is always the safest spot
Show the answer
It is the obvious spot, so many traders pick it. The last low is easy to see, so stops pile up there. One tick below it takes them all out. Lesson ›
4. Your position is so big that you can only afford a 0.5% stop. What do you fix first?
- Move the stop closer
- Make the position smaller
- Remove the stop
- Add more to the trade
Show the answer
Make the position smaller. Fix the size first. A smaller position lets the stop sit where your idea is wrong, for the same dollar risk. Lesson ›
5. Price is near your stop. Moving the stop further away mostly changes…
- Nothing at all
- How much the loss costs, not how often it happens
- The trade into a winner
- The market's direction
Show the answer
How much the loss costs, not how often it happens. Moving the stop does not make it right more often. It makes the losses that do happen bigger. Lesson ›
6. What does "stop first, size second" mean?
- Pick your size, then your stop
- Decide where the idea is wrong, then work out the size
- Always use a 1% stop
- Never use a stop
Show the answer
Decide where the idea is wrong, then work out the size. The stop comes from the chart. The size comes from the stop and the loss you accept. Lesson ›
7. Your account is $10,000 and you accept 1% per trade. How much is that?
- $10
- $100
- $1,000
- $1
Show the answer
$100. 1% of $10,000 is $100. Lesson ›
8. You accept $100. Your stop is 2.2% away. What is your size?
- $220
- $1,000
- $4,545
- $10,000
Show the answer
$4,545. $100 ÷ 0.022 = $4,545. If the stop is hit, you lose about $100. Lesson ›
9. Your stop has to be twice as far away. To keep the same dollar risk, your size should…
- Double
- Stay the same
- Halve
- Go to zero
Show the answer
Halve. Twice the distance at the same dollar risk means half the size. Lesson ›
10. Why is a 1% stop on a 4-hour Bitcoin chart often a poor choice?
- It is too far away
- A normal 4-hour candle moves about 1.5%, so noise can reach it
- Exchanges do not allow it
- It always makes money
Show the answer
A normal 4-hour candle moves about 1.5%, so noise can reach it. A normal 4-hour Bitcoin candle is about 1.5%. A 1% stop sits inside normal noise. Lesson ›
11. When price broke below a recent low (28,975 cases), how often did that same candle close back above it?
- About 1 in 10
- About a quarter
- More than half
- Never
Show the answer
More than half. 51.5% of the breaking candles closed back above the low. Lesson ›
12. Your stop is one tick under the low. When price dips under the low, the stop is…
- Hit every time
- Hit half the time
- Never hit
- Moved for you
Show the answer
Hit every time. Any dip under the low reaches a stop that sits one tick under it. Lesson ›
13. With half a normal candle of room, how often did price bounce a full candle back up before touching the stop?
- 0%
- 36%
- 90%
- 100%
Show the answer
36%. 36% of the dips bounced a full candle first. With a full candle of room, 57%. Lesson ›
14. You give your stop more room. What else must change?
- Buy more
- Make the size smaller, so the dollar risk stays the same
- Nothing
- Remove the target
Show the answer
Make the size smaller, so the dollar risk stays the same. A wider stop at the same size risks more money. The one-line rule shrinks the size. Lesson ›
15. Is extra room a guarantee?
- Yes, a wide stop is never hit
- No: most breaks still went deeper within 12 candles
- Only on Bitcoin
- Only at night
Show the answer
No: most breaks still went deeper within 12 candles. In 87% of the breaks, price went at least half a candle deeper within 12 candles. Lesson ›
16. 979 real trades hit their stop. How often did price come back to the entry before falling another full stop?
- About 10%
- About half: 52%
- Every time
- Never
Show the answer
About half: 52%. 52% came back to the entry first; 39% fell another full stop first; 9% did both in one candle. Lesson ›
17. You move the stop down and price does not come back. Your loss…
- Stays the same
- Roughly doubles
- Disappears
- Halves
Show the answer
Roughly doubles. Moving the stop one more stop-distance away makes the loss twice as big when price keeps going. Lesson ›
18. Which way may a stop move?
- Down, away from the price
- Up, toward profit
- Any way you like
- It may never move
Show the answer
Up, toward profit. A stop may only move toward profit, for example to the entry once price is one stop-distance in your favor. Lesson ›
19. On 1,726 real setups, moving the stop to the entry after a one-stop move in profit…
- Turned every trade into a winner
- Saved 132 losing trades but cut 72 winners short
- Changed nothing
- Doubled the profits
Show the answer
Saved 132 losing trades but cut 72 winners short. It helped a little and ended 268 trades at zero, but it did not turn the setups into an edge. Lesson ›
20. Bitcoin, May 2022: the stop was hit the next day. What came after?
- Price went straight up
- Price touched about 33% lower within eight days
- Price stayed flat
- Trading stopped
Show the answer
Price touched about 33% lower within eight days. From $39,690 on 4 May, price touched $26,700 on 12 May. Every moved stop was hit on the way. Lesson ›
21. To the market, a stop loss is…
- A buy order
- A sell order waiting at a price
- A free option
- A fee
Show the answer
A sell order waiting at a price. A stop under a low turns into a sell order when price touches it. Lesson ›
22. Why does price often dip just under an obvious low?
- Stops pile up there, and big orders need them
- The chart is wrong
- Trading pauses there
- It never does
Show the answer
Stops pile up there, and big orders need them. Big buyers need sellers, and the stops under an obvious low are a pile of sell orders. Lesson ›
23. After the breaking candle closed back above the low, how often did price rise a full candle first?
- 20%
- 54%
- 90%
- 5%
Show the answer
54%. 54% rose a full candle first; 40% made a new low first (14,920 cases). Lesson ›
24. After a close below the low, how often did price rise a full candle first?
- 20%
- 54%
- 74%
- 100%
Show the answer
20%. Only 20%; 74% made a new low first (14,055 cases). Lesson ›
25. The candle closes below the low and keeps falling. What does your stop do?
- Nothing useful
- It gets you out, which is its job
- It makes the loss bigger
- It should be moved lower
Show the answer
It gets you out, which is its job. A real break is exactly the day the stop is for. Lesson ›
26. In India's one-year study, how many of every 100 individual traders in futures and options lost money?
- About 1 in 10
- About half
- 91 out of 100
- Every single one
Show the answer
91 out of 100. 91 out of 100 lost money in that one year, about $12 billion together. Lesson ›
27. What does "losing is the default" mean?
- Only beginners lose money
- Most traders lose; it is not a flaw in you
- Losses come from bad luck alone
- Every trade you make will lose
Show the answer
Most traders lose; it is not a flaw in you. Different countries, different markets, same result: most traders lose. That is about how trading works, not a flaw in you. Lesson ›
28. In Taiwan, how many day traders made reliable profits after fees?
- More than 80 in 100
- About half
- About 1 in 3
- Fewer than 1 in 100
Show the answer
Fewer than 1 in 100. Of over 360,000 day traders, more than 80 in 100 lost, and fewer than 1 in 100 made reliable profits after fees. Lesson ›
29. Which are the three doors the money leaves through?
- Costs, leverage and the other side of your trade
- Bad luck, rumours and stop hunting
- Slow apps, bad news and busy days
- The wrong chart, pattern or timeframe
Show the answer
Costs, leverage and the other side of your trade. Costs are paid on every trade, leverage (borrowed money) makes losses bigger, and someone on the other side takes what you give up. Lesson ›
30. Picture 100 people like the Brazil group. About how many earned more than the minimum wage from day trading?
- About 97
- About 10
- About 3
- About 1
Show the answer
About 1. Only 1.1% earned more than the minimum wage. Even most of the few who did not lose earned less than that. Lesson ›
31. An example $1,000 trade pays 0.1% each way. What do fees cost to get in and out once?
- $1
- $2
- $10
- Nothing if the trade wins
Show the answer
$2. $1 to get in plus $1 to get out is $2 for every round trip, win or lose. Lesson ›
32. What is the spread?
- A fee charged once a month
- How far your stop is from your entry
- The gap between the buy price and the sell price
- How much the price moves in a day
Show the answer
The gap between the buy price and the sell price. You buy at the higher price and sell at the lower one, so every trade starts a little behind. Lesson ›
33. Your order fills at a worse price than the one you clicked. What is that called?
- Slippage
- The spread
- Leverage
- A stop loss
Show the answer
Slippage. Slippage never arrives as a bill; it just shrinks your result. Fast markets and orders at any price make it worse. Lesson ›
34. You trade an example $1,000 back and forth 50 times, at 0.1% each way. What do the fees alone cost?
- $2
- $50
- $1,000
- $100
Show the answer
$100. Each round trip costs $2, so 50 of them cost $100, before spread and slippage. At 500, fees take the whole $1,000. Lesson ›
35. An example $1,000 trade gains $3 before costs. The fee is $1 in and $1 out. What do you keep, before spread and slippage?
- $3
- $2
- $1
- Nothing at all
Show the answer
$1. $3 − $1 − $1 = $1. Fees took two of your three dollars, and the spread and slippage still come out of the rest. Lesson ›
36. What is leverage?
- Trading with borrowed money
- A fee paid on every trade
- The price where you give up
- A way to make losses smaller
Show the answer
Trading with borrowed money. Borrowed money makes the trade bigger than your own money, so every move, up or down, hits you harder. Lesson ›
37. You put in $1,000 at 10x. Price moves 1% against you. How much of your money is that?
- 0.1%
- 1%
- 100%
- 10%
Show the answer
10%. At 10x you control $10,000, so a 1% move is $100: 10% of your $1,000. Lesson ›
38. At 10x, how big a move against you wipes out all the money you put in?
- 1%
- 10%
- 50%
- 100%
Show the answer
10%. 10% × 10 = 100% of what you put in. Most platforms close the trade even earlier, to protect the money they lent. Lesson ›
39. Between 74 and 89 in 100 leveraged accounts of ordinary EU traders lost money. What does leverage change?
- Your odds of being right
- Whether prices go up
- How fast gains and losses arrive
- Nothing at all
Show the answer
How fast gains and losses arrive. Leverage does not make you right more often. It multiplies every move, so losses arrive faster. Lesson ›
40. At 25x, about how big a price move against you empties the money you put in?
- 25%
- 10%
- 4%
- 1%
Show the answer
4%. 4% × 25 = 100%, before fees. A normal Bitcoin day, about 3.9% from low to high, already takes 97.5%. Lesson ›
41. Before costs, futures and options trading is zero-sum. What does that mean?
- Everyone ends at zero
- What one side gains, the other side gives up
- Nobody can lose money
- Both sides always win
Show the answer
What one side gains, the other side gives up. Every trade has two sides. Before costs, one side's gain is the other side's loss. Lesson ›
42. In India, in one year, who made about $7 billion from futures and options, before costs?
- Individual traders
- The regulator
- Nobody: everyone lost
- Trading firms and foreign funds
Show the answer
Trading firms and foreign funds. Trading firms and foreign funds made about $7 billion in that year, and individuals lost about the same, before costs. Lesson ›
43. Where did 96 to 97% of those firms' profit come from?
- Computer programs that trade
- Tips shared online
- A few lucky days
- Holding shares for years
Show the answer
Computer programs that trade. 96% of the trading firms' profit and 97% of the foreign funds' came from computer programs, which are often faster than you. Lesson ›
44. After costs, what happens to both sides of futures and options trades, added together?
- They break even
- They both gain
- They lose, because both pay costs
- Only the winner pays costs
Show the answer
They lose, because both pay costs. Before costs the two sides cancel out. Costs come out of every trade, so together they end below zero. Lesson ›
45. The busiest traders earned 11.4% a year while the market earned 17.9%. How far behind the market were they?
- Not at all: they made money
- 11.4 points a year
- 17.9 points a year
- 6.5 points a year
Show the answer
6.5 points a year. 17.9 − 11.4 = 6.5 points a year behind. Making money is not the same as doing well, and every extra trade was another chance for the other side. Lesson ›
46. You lose 50% of your account. What gain gets you back to where you started?
- 50%
- 75%
- 100%
- 200%
Show the answer
100%. What is left must double just to get back where you started: half down means double up. Lesson ›
47. You lose 10%. What gain do you need to get back?
- 11.1%
- 10%
- 9%
- 20%
Show the answer
11.1%. Small losses are forgiving: 10% down needs 11.1% back. The gap grows as the loss gets deeper. Lesson ›
48. An example $1,000 loses 50%, then gains 50%. Where does it end?
- $1,000
- $750
- $500
- $250
Show the answer
$750. $1,000 − 50% = $500. A 50% gain on $500 is $250, so you end at $750. The gain works on less money. Lesson ›
49. An example $1,000 account has fallen to $750. What gain gets it back to $1,000?
- 25%
- 50%
- 75%
- 33.3%
Show the answer
33.3%. $750 is a 25% loss. Getting $250 back on $750 is a 33.3% gain. Lesson ›
50. One trader loses 10%, another loses 50%. The second loss is 5 times bigger. The gain the second one needs is…
- 5 times bigger
- About 9 times bigger
- Twice as big
- The same
Show the answer
About 9 times bigger. 10% down needs 11.1%, but 50% down needs 100%: about 9 times as much. The gain needed grows much faster than the loss. Lesson ›
51. In the 1% rule, what is "risk"?
- The full size of the trade
- The fee on the trade
- How far price moves in a day
- What you lose if your stop is hit
Show the answer
What you lose if your stop is hit. Risk is the money you lose if your stop, the price where you give up, is hit. The trade itself can be much bigger. Lesson ›
52. You risk 1% per trade and lose ten in a row. About how much of the account is left?
- 90.4%
- 34.9%
- 10%
- Nothing
Show the answer
90.4%. Each loss is 1% of what is left, so 90.4% remains. Risking 10% each would leave only 34.9%. Lesson ›
53. An example $10,000 account risks 1%, and the stop is $2 from the entry. How many units fit that risk?
- 2 units
- 50 units
- 100 units
- 200 units
Show the answer
50 units. 1% of $10,000 is $100, and $100 ÷ $2 = 50 units. If the stop is hit, you lose $100, before fees. Lesson ›
54. Which order does the 1% rule use to plan a trade?
- Pick the size, then the stop, then see the loss
- Pick a winner first, then think about risk
- Dollars you can lose, then the stop, then the size
- Set a target, then add until it feels right
Show the answer
Dollars you can lose, then the stop, then the size. Work backwards: decide the dollars you can lose, set your stop, then size the trade to fit. Lesson ›
55. After ten losses at 10% each, 34.9% of the account is left. How much must that grow to get back to the start?
- About 10%
- By about half
- It must double
- Almost triple: 2.87 times
Show the answer
Almost triple: 2.87 times. 100 ÷ 34.9 = 2.87, a gain of about 187%. At 1% risk, the same streak would have left 90.4%. Lesson ›
56. What is a win rate?
- The share of trades you win
- How much a win pays
- The fee on each trade
- How fast the price moves
Show the answer
The share of trades you win. It is how often you win. It says nothing about how much a win pays or a loss costs. Lesson ›
57. You win 80 of 100 trades at $1 each and lose 20 at $5 each. What is the result?
- +$80
- $0
- +$60
- −$20
Show the answer
−$20. 80 × $1 = $80 in and 20 × $5 = $100 out. You won most of the trades and still lost $20. Lesson ›
58. Your wins get bigger compared with your losses. What happens to the win rate you need?
- It goes up
- It goes down
- It stays at 50%
- It stops mattering
Show the answer
It goes down. The bigger the wins, the fewer you need: 50% at 1 to 1, 40% at 1.5 to 1, 33.3% at 2 to 1, 25% at 3 to 1. Lesson ›
59. Each win pays $3 and each loss costs $1. What win rate do you need to break even, before fees?
- 75%
- 50%
- 25%
- 33.3%
Show the answer
25%. That is 3 to 1. Win 25 of 100: 25 × $3 = $75 in, 75 × $1 = $75 out, so you end at zero. Lesson ›
60. Our real setups paid 1.5 to 1, and 33% reached the planned profit price first. What does that mean?
- A small profit, before fees
- 7 points short of the 40% needed
- Exactly break-even
- Plenty: 33% is a high win rate
Show the answer
7 points short of the 40% needed. At 1.5 to 1 you must win 40% just to end at zero. 33% is 7 points short, before a single fee. Lesson ›
61. What does expectancy tell you?
- How often you win
- What one trade is worth on average
- Your biggest win so far
- How many trades to make a day
Show the answer
What one trade is worth on average. It puts how often you win and lose together with how big the wins and losses are, in one number. Lesson ›
62. Win 40% making $150, lose 60% giving up $100. What is the expectancy per trade, before fees?
- +$150
- +$60
- −$100
- $0
Show the answer
$0. 40% × $150 = $60 and 60% × $100 = $60. $60 − $60 = $0, and fees push it below zero. Lesson ›
63. On average, 1,726 real pattern setups lost about 3 cents per $1 risked, before fees. What does that show?
- Patterns alone were not an edge
- Patterns are an edge after fees
- Every setup lost
- 3 cents is a small profit
Show the answer
Patterns alone were not an edge. An edge is a number above zero over many trades. These setups were slightly below zero, even before fees. Lesson ›
64. A tip won three trades in a row. What does that tell you about an edge?
- It proves an edge
- It proves the tip came from a pro
- Not much: an edge shows over many trades
- It means the next trade will win too
Show the answer
Not much: an edge shows over many trades. Three wins can come by chance. An edge is a number above zero over many logged trades, and a hot tip is not one. Lesson ›
65. You win 50% of trades making $150 and lose 50% giving up $100. What is the expectancy per trade, before fees?
- $75
- $25
- $50
- $0
Show the answer
$25. 50% × $150 = $75, minus 50% × $100 = $50, gives +$25 a trade before fees. Only many logged trades would show if it lasts. Lesson ›
66. In the study of 66,465 households, who earned the least?
- The ones who traded the most
- The ones who traded the least
- Everyone earned about the same
- Nobody: they all beat the market
Show the answer
The ones who traded the most. The busiest fifth earned 11.4% a year, while just holding the market earned 17.9%. Lesson ›
67. Which costs does every trade pay?
- Only a fee when the trade wins
- Nothing, if you close it the same day
- A fee in, a fee out, and the buy-sell price gap
- A fee only on your very first trade
Show the answer
A fee in, a fee out, and the buy-sell price gap. You pay to get in, to get out, and the gap between the buy and sell price. Trade twice as often and you pay all three twice as often. Lesson ›
68. Each trade costs you $2 in fees, in and out. You go from 10 trades a week to 20. What happens to your weekly fees?
- They stay at $20
- They double, from $20 to $40
- They drop, because you trade more
- They rise by just $2
Show the answer
They double, from $20 to $40. 20 trades × $2 = $40, twice as much. The gap between the buy and sell price comes on top. Lesson ›
69. What did the researchers point to as the reason people trade too much?
- Bad luck with timing
- Not watching the charts enough
- Fees too small to matter
- Overconfidence: feeling more sure than the facts allow
Show the answer
Overconfidence: feeling more sure than the facts allow. Each trade feels like the sure one. The feeling is free; the trades it produces are not. Lesson ›
70. The busiest traders earned 11.4% a year; the market earned 17.9%. How much of the market's return did they give up?
- None: they still made money
- About 6.5% of it
- About 36% of it, over a third
- Almost all of it
Show the answer
About 36% of it, over a third. The gap is 17.9 − 11.4 = 6.5 points, and 6.5 ÷ 17.9 is about 36%. Making money is not the test; keeping up with just holding is. Lesson ›
71. What is revenge trading?
- Taking your planned trade at normal size
- Going bigger to win a loss back
- Stopping for the day after two losses
- Closing a trade at your stop
Show the answer
Going bigger to win a loss back. It is the urge to get a loss back now. A bigger trade looks like the fastest way back, and that is the trap. Lesson ›
72. Your normal loss is $100 and you double after each loss. What do three losses in a row cost?
- $100
- $300
- $400
- $700
Show the answer
$700. $100 + $200 + $400 = $700: seven normal losses in three trades. Lesson ›
73. You follow this lesson's rule, set before you trade. You have lost two trades today. What now?
- Stop for the day
- Double the next trade to catch up
- One more trade at the same size
- Switch to a faster chart
Show the answer
Stop for the day. After a loss, the next trade is the same size or smaller. After two losses you are done; the market will still be there tomorrow. Lesson ›
74. Your normal loss is $50 and you keep the same size after each loss. What do three losses in a row cost?
- $50
- $100
- $150
- $350
Show the answer
$150. 3 × $50 = $150. Doubling instead would cost $50 + $100 + $200 = $350, more than twice as much. Lesson ›
75. In our 1,814 real setups, 54% hit the stop first. Treating trades as separate, how often do three losses in a row come?
- About 54%, the same as one loss
- About 16%, one time in six
- About 29%
- Almost never
Show the answer
About 16%, one time in six. 0.54 × 0.54 × 0.54 is about 0.157, so about 16%, one time in six. That is arithmetic on our data, not a promise. Lesson ›
76. A normal Bitcoin hour moves about 0.7%, top to bottom. What is a 0.3% stop on an hourly chart?
- A stop with plenty of room
- A stop beyond a normal day's move
- A stop inside the normal wiggle
- A stop that is hit only on big news
Show the answer
A stop inside the normal wiggle. 0.3% is less than half a normal hour, so ordinary wiggles reach it: within one hour 44% of the time, within 12 hours 82%. Lesson ›
77. On 12,926 real Bitcoin hours, a 0.3% stop against a 0.3% take-profit: which came first?
- About even: 41.0% vs 41.5%
- The stop, almost every time
- The take-profit, almost every time
- Neither was ever reached
Show the answer
About even: 41.0% vs 41.5%. The stop came first 41.0% of the time and the take-profit 41.5%; both hit in the same hour 17.4%. Heads or tails. Lesson ›
78. Example fee: 0.1% to get in and 0.1% to get out. What does a 0.3% win keep?
- 0.3%
- 0.5%
- 0.2%
- 0.1%
Show the answer
0.1%. 0.3% minus 0.2% of fees leaves 0.1%. The same fees turn a 0.3% loss into 0.5%. Lesson ›
79. Same example fees, 0.1% each way. You win one 0.3% trade and lose one 0.3% trade. Where do you end up?
- Even, at 0%
- Down 0.4%
- Up 0.1%
- Down 0.2%
Show the answer
Down 0.4%. The win keeps +0.1% and the loss costs −0.5%, so you are down 0.4%. Before fees you would be even. Lesson ›
80. You widen your stop from 0.3% to 0.7% but keep the same size. What happens to your dollar risk?
- It more than doubles
- It stays the same
- It halves
- It drops to zero
Show the answer
It more than doubles. Risk = size × stop distance, and 0.7% is more than twice 0.3%. So shrink the size to keep the same dollar risk. Lesson ›
81. Compared with winning the same amount, how strongly does a loss tend to hit?
- About half as strong
- About the same
- About ten times as strong
- About twice as strong
Show the answer
About twice as strong. A famous study measured about 2.25 times, and a review of 150 studies puts it at about 2. Lesson ›
82. Right after a loss, what does the pain push many traders to do?
- Take a break until tomorrow
- Trade bigger to win it back fast
- Cut the next trade's size in half
- Review the plan calmly
Show the answer
Trade bigger to win it back fast. The quickest painkiller looks like a bigger trade. That is revenge trading, and it turns one loss into a streak you did not plan. Lesson ›
83. Why do people hold a losing trade too long?
- Their plan told them to
- Losing trades cost less in fees
- Closing it makes the loss real, and that hurts
- Losses always come back in time
Show the answer
Closing it makes the loss real, and that hurts. Waiting feels like patience, but it is the same pain, avoided. Meanwhile, the loss can keep growing. Lesson ›
84. If a loss weighs about twice as much as a win, a $50 loss hurts about as much as a win of…
- $100
- $50
- $25
- $500
Show the answer
$100. At about twice the weight, 2 × $50 = $100. That is why even small losses push hard on your choices. Lesson ›
85. You set your exit before entering. The trade hits it and loses $100. How should you judge it?
- A bad trade, because it lost money
- A sign to move the stop next time
- A reason to trade bigger next time
- A good trade, because you followed the plan
Show the answer
A good trade, because you followed the plan. Judge each trade by one question: did I follow the plan? A planned loss is part of trading; an unplanned one is the feeling winning. Lesson ›
86. Why does more screen time tend to lead to more trades?
- Every hour shows new wiggles that look like chances
- The market moves more while you watch
- Watching makes each trade safer
- Fees get lower the longer you watch
Show the answer
Every hour shows new wiggles that look like chances. Nothing about the market changed. You just saw more of it, and every wiggle looked like a chance. Lesson ›
87. Which is a good trading window?
- All day, so you never miss a move
- Whenever a big move starts
- One or two set hours daily, rested and not rushed
- Late at night, after a long day
Show the answer
One or two set hours daily, rested and not rushed. Same hours every day, when you are rested. Outside that window, the app stays closed. Lesson ›
88. Your cap is 2 trades a day. Both closed as winners, 30 minutes into your window. What now?
- Keep going while you are on a roll
- Take one more at double size
- Raise today's cap to 3
- Stop: the cap counts wins too
Show the answer
Stop: the cap counts wins too. The cap is a number of trades, win or lose. When the last one closes, you are done for the day. Lesson ›
89. When should you decide your daily cap?
- After your first loss
- The night before
- When a great setup appears
- Once you reach the cap
Show the answer
The night before. Decided calmly the night before, the cap does not bend to the moment. Lesson ›
90. Your window has ended and a perfect chance is forming. What does the lesson say to do?
- Stay a little longer, just this once
- Take it at a smaller size
- Close the app; there will be another tomorrow
- Move your window later from now on
Show the answer
Close the app; there will be another tomorrow. This is the hardest step, and it is what makes the fence real. There will be another chance tomorrow; there always is. Lesson ›
91. You buy 10 coins at $100 and 10 more at $95. What is your average price?
- $95
- $97.50
- $100
- $105
Show the answer
$97.50. (100 + 95) ÷ 2 = $97.50. The average drops, but you now hold twice as many coins. Lesson ›
92. After adding, you hold 20 coins instead of 10. What does each $1 fall now cost you?
- $20
- $10
- $1
- Nothing, since your average dropped
Show the answer
$20. 20 coins × $1 = $20, twice what it cost with 10 coins. Lesson ›
93. What is the fix for averaging down?
- Add a little each time price falls
- Move your stop lower after you add
- Decide your full size before the first buy
- Add only after your stop is hit
Show the answer
Decide your full size before the first buy. Plan the whole position before you start, and never add to a loser to rescue it. Lesson ›
94. After 979 hit stops, price came back to the buy price first in 52%. Why is averaging down still a trap?
- It is not: more than half came back first
- Adding coins makes each $1 fall cost less
- Your average price goes up when you add
- In 39%, price first fell the same distance again
Show the answer
In 39%, price first fell the same distance again. 52% is why it feels smart. But in 39% price fell another stop-distance first, and with twice the coins that loss is three times the plan. Lesson ›
95. You buy 2 coins at $50 and plan to give up at $45. You buy 2 more at $45 instead. At $40, what is your loss?
- $10
- $20
- $30
- $40
Show the answer
$30. The first 2 coins lose $10 each and the next 2 lose $5 each: $30, three times the $10 you planned. Lesson ›
96. What is a mental stop?
- A stop order waiting in the market
- A price where you take profit
- A give-up price kept only in your head
- A rule to stop trading for the day
Show the answer
A give-up price kept only in your head. It is an exit you plan to make yourself. No order is waiting in the market. Lesson ›
97. Price passes your mental stop while you sleep. What happens?
- The trade closes at your price
- The market waits until you wake
- The trade closes at a better price
- Nothing: no order was there to act
Show the answer
Nothing: no order was there to act. A mental stop needs you watching, awake and free right then. Asleep, the plan is gone. Lesson ›
98. Your give-up price is 2% away and a normal Bitcoin day spans 3.9%. You look away all day. What can happen?
- Price can pass your number with nothing to stop it
- Price cannot move 2% in one day
- The trade closes itself at exactly 2%
- Nothing, since most days are calm
Show the answer
Price can pass your number with nothing to stop it. A normal day spans 3.9%, almost twice your 2%. With no order waiting, price can be far past your number when you look back. Lesson ›
99. Why do many traders freeze when price reaches their mental stop?
- Their stop order already closed the trade
- Closing means choosing pain, and a loss hurts about double
- Rules forbid closing a losing trade
- Price always stalls near a stop
Show the answer
Closing means choosing pain, and a loss hurts about double. A loss hurts about twice as much as a win feels good, so you wait one more minute, then one more. The plan was fine; the moment beat it. Lesson ›
100. What is the honest downside of a real stop order in a fast market?
- It never fills at all
- It makes the possible loss unlimited
- It closes trades at random times
- It can fill a little worse than your price
Show the answer
It can fill a little worse than your price. In a fast market the fill can be a little worse than the set price. But it acts when you freeze, and a mental stop may not act at all. Lesson ›
101. After 919 huge green candles, what came first?
- A crash, almost every time
- A rise, almost every time
- No move at all for 12 candles
- A rise in about half, a fall in 41%
Show the answer
A rise in about half, a fall in 41%. Price rose one normal candle first in 49.7%, fell one first in 41.0%, and did both in one wild candle in 9.2%. Not a crash, and not a sure thing. Lesson ›
102. You buy at the top of a big green candle and put your stop under it. How far away is that stop, typically?
- About half a normal candle
- Almost 3 normal candles
- About 1 normal candle
- About 10 normal candles
Show the answer
Almost 3 normal candles. The typical distance was 2.81 normal candles, almost 3, because the stop sits below the whole big candle. Lesson ›
103. What were the next 12 candles like after a big green candle?
- Bigger: about 1.6 times normal size
- Calmer than normal
- The same as after any candle
- Almost flat
Show the answer
Bigger: about 1.6 times normal size. They were about 1.6 times their normal size, against 0.97 after any candle. In one case out of three, price gave back the whole big candle. Lesson ›
104. You usually risk $100 with a stop 1 normal candle away. A big-candle stop is 3 candles away. At the same size, what is at risk?
- $33
- $100
- $300
- $1,000
Show the answer
$300. Risk = size × stop distance. Three times the distance at the same size is three times the risk: $300. Lesson ›
105. A big candle is in your plan, and the stop under it is 3 normal candles away. How do you keep your usual risk?
- Use about one third of your usual size
- Use three times your usual size
- Keep your usual size and skip the stop
- Use a 1-candle stop inside the big candle
Show the answer
Use about one third of your usual size. Three times the distance at one third of the size is the same dollar risk. A stop inside the candle would sit in the wild swings that follow. Lesson ›
106. What is the disposition effect?
- Selling winners too soon and holding losers too long
- Holding winners and selling losers fast
- Buying more as price falls
- Trading only in set hours
Show the answer
Selling winners too soon and holding losers too long. A win feels good, so you lock it in. A loss hurts, so you avoid making it real. Lesson ›
107. In 10,000 accounts, how did the chance of selling a stock at a gain compare with one at a loss?
- About the same
- About half as likely
- About 50% more likely
- About 10 times as likely
Show the answer
About 50% more likely. A stock at a gain was sold about 1.5 times as often as one at a loss, and the researcher ruled out the usual excuses. Lesson ›
108. Over the next year, how did the winners people sold compare with the losers they kept?
- The losers kept did about 3.4 points better
- The winners sold did about 3.4 points better
- Both did exactly as well as the market
- Both beat the market by about 2.35%
Show the answer
The winners sold did about 3.4 points better. The winners sold beat the market by 2.35% and the losers kept trailed it by 1.06%: a gap of about 3.4 points. They sold the wrong ones and kept the wrong ones. Lesson ›
109. You open a trade with a give-up price 2% below and a take-profit 4% above. Price rises 2% and you want to sell. What now?
- Sell now and lock in the 2%
- Move the give-up price lower for room
- Sell half and drop both exits
- Leave both exits where you set them
Show the answer
Leave both exits where you set them. You set both exits when you felt nothing. Selling early because a win feels good is this habit coming back. Lesson ›
110. After you sell, your old winner rises another 3%. The loser you kept falls another 1%. How many points better did the sold one do?
- 1 point
- 2 points
- 3 points
- 4 points
Show the answer
4 points. +3 against −1 is a gap of 3 + 1 = 4 points. The study found this kind of gap across 10,000 accounts: about 3.4 points. Lesson ›
111. What does a call option pay on its expiry day?
- Always its cost back
- Price minus the strike, or zero
- The strike price itself
- Twice what it cost
Show the answer
Price minus the strike, or zero. It is the right to buy at the strike. On the last day it pays price minus strike if that is above zero, and nothing otherwise. Lesson ›
112. What happens to the time part of an option's price as expiry gets closer?
- It grows each day
- It stays the same
- It turns negative
- It shrinks, to zero on the last day
Show the answer
It shrinks, to zero on the last day. Time is the chance of a big move before the last day. Each day less is left, and on the last day it is worth zero. Lesson ›
113. Price is $100 and the strike is $110, with one day left. How much must price rise for the option to pay anything?
- More than 1%
- More than 5%
- More than 10%
- Any rise at all
Show the answer
More than 10%. It pays only above the strike, and $100 to $110 is a 10% rise in one day. Even a normal Bitcoin day spans only 3.9%, top to bottom. Lesson ›
114. What did India's market regulator find for the year to March 2026?
- 59% of index option trading was on expiry day
- Expiry-day trading had almost stopped
- Most individual traders made money
- Options caused only a small share of losses
Show the answer
59% of index option trading was on expiry day. 59% of index option trading was on expiry day itself, and options caused 92% of individual traders' losses. Lesson ›
115. The example option needs a 5.2% rise in one day to get its 20 cents back. Why does it end at $0 on a normal day?
- Fees take the whole 5.2%
- The strike moves up each day
- Options can never pay out
- A normal day spans only 3.9%, top to bottom
Show the answer
A normal day spans only 3.9%, top to bottom. A day whose whole range is 3.9% cannot hold a rise of more than 5%, so on a normal day the ticket pays nothing. Always work out the move it needs. Lesson ›
116. What is tilt?
- Trading while a loss still stings
- A chart pattern that leans to one side
- A fee charged after a losing trade
- A rule for moving your stop
Show the answer
Trading while a loss still stings. Tilt is trading while a loss still stings. The loss, not your plan, starts picking your trades. Lesson ›
117. Which of these is one of the four signs of tilt?
- Waiting for your setup
- Setting your stop before you click
- Making the next trade bigger after a loss
- Keeping the same size all day
Show the answer
Making the next trade bigger after a loss. A bigger size after a loss is sign one. Waiting for your setup and setting the stop first are the opposite of tilt. Lesson ›
118. Why does the fourth sign, "I'll win it back today", slip past so easily?
- It is part of a good trading plan
- It sounds like a goal, but the loss is picking your next trade
- It only shows up after a big win
- It only happens to beginners
Show the answer
It sounds like a goal, but the loss is picking your next trade. It sounds like a plan, so it feels sensible. That one sentence turns a single loss into a losing day. Lesson ›
119. In one study, what did professional traders often do after losing money in the morning?
- Stopped trading for the day
- Cut their size in half
- Traded only their best setup
- Took above-average risk that afternoon
Show the answer
Took above-average risk that afternoon. Coval and Shumway (2005) found they regularly took above-average afternoon risk to recover morning losses. Tilt is not only a beginner's problem. Lesson ›
120. Your normal size is 1 unit. Minutes after a loss, you place 2 units on a chart you had not planned to trade. Which signs show?
- Only a bigger size
- A bigger size and faster trades
- Only a skipped stop
- None: a bigger size shows confidence
Show the answer
A bigger size and faster trades. Going from 1 unit to 2 after a loss is sign one. Clicking an unplanned trade minutes after the loss is sign two. Lesson ›
121. After a big loss or a broken rule, what does the 24-hour rule say?
- Trade smaller for 24 hours
- No new trades for 24 hours
- Trade only your best setup
- Double your size to win it back
Show the answer
No new trades for 24 hours. Not smaller trades: no trades at all. Close the trading app and walk away from the screen. Lesson ›
122. When should you decide what counts as a big loss?
- Now, while you are calm, in writing
- Right after the loss, while it stings
- At the end of a losing week
- When the next trade looks good
Show the answer
Now, while you are calm, in writing. Decide while you are calm and write it down. Then the rule decides, not your mood. Lesson ›
123. Why does taking away the next trade stop the tilt loop?
- The market calms down after 24 hours
- Losses shrink if you wait a day
- Every turn of the loop needs a next trade
- Fees are lower the next day
Show the answer
Every turn of the loop needs a next trade. A loss, a bigger trade, a bigger loss: each turn runs on a next trade. Take it away, and the loop has nothing to run on. Lesson ›
124. What makes the 24-hour rule stick?
- Watching the charts all day without trading
- Deleting the losing trade from your records
- Opening one small trade to stay sharp
- Writing down the trade and reading it before trading again
Show the answer
Writing down the trade and reading it before trading again. Write down what you planned, what you did and how you felt. Tomorrow, read that page before you place anything. Lesson ›
125. You skipped your stop and lost $100, less than you planned to lose today. What does the 24-hour rule say?
- Keep trading, since the loss was small
- One more trade to win back the $100
- No new trades for 24 hours: you broke a rule
- Keep trading, but at half size
Show the answer
No new trades for 24 hours: you broke a rule. The rule starts after a big loss or a broken rule. Skipping your stop is a broken rule, whatever the size of the loss. Lesson ›
126. When should you pick your daily loss limit?
- After your first loss of the day
- When you feel the day going badly
- At the end of the week
- Before the day starts
Show the answer
Before the day starts. Pick it before the first trade, while you are calm. In the middle of a bad day, the loss would pick it for you. Lesson ›
127. Each trade can lose 1% of the account. How many losing trades reach a 2% daily limit?
- One
- Two
- Three
- Four
Show the answer
Two. Two losses of 1% each make 2%. The day ends while the damage is small. Lesson ›
128. You hit your limit, and one more trade could get you back to even. What do you do?
- Stop and close the trading app
- Take it, but at a smaller size
- Take it, then stop for the day
- Raise the limit a little for today
Show the answer
Stop and close the trading app. The limit only works if hitting it ends the day, every single time. "Just one more" is how a bad day loses its floor. Lesson ›
129. A $10,000 account risks 1% per trade and sets a 3% daily limit. What is the most the day is planned to lose?
- $100
- $200
- $300
- $1,000
Show the answer
$300. 3% of $10,000 is $300: three losing trades of $100 each. Then the day ends. Lesson ›
130. Your limit is 2% of the account or 3 losses in a row, whichever comes first. Each trade risks 1%. When does the day end?
- After 3 losses in a row
- After 2 losing trades
- After 4 losing trades
- When you decide you have had enough
Show the answer
After 2 losing trades. Two losing trades at 1% each reach 2% before a third loss can happen, so the 2% limit ends the day first. Lesson ›
131. Your stop is "somewhere near the last low". What does the first question tell you?
- That is close enough
- You are not ready: the stop must be an exact price
- Set the stop after you click
- Use a wider stop instead
Show the answer
You are not ready: the stop must be an exact price. The stop is a number, decided before you click. If you cannot say it out loud, you are not ready to click. Lesson ›
132. Which of these means "no trade" under question four, am I calm?
- A tight jaw
- A written plan
- A stop price you can say
- A size from the one-line rule
Show the answer
A tight jaw. Rushing, a tight jaw or the need to win it back: any one means no trade. Stand up for five minutes, then ask again. Lesson ›
133. You accept to lose $200, and your stop is $2 away. What size fits the one-line rule?
- 400 units
- 200 units
- 100 units
- 2 units
Show the answer
100 units. Size = $200 ÷ $2 = 100 units. If the stop is hit, you lose about $200. Lesson ›
134. A new idea pops up that is not in the plan you wrote this morning. What does question three say?
- Take it if the chart looks strong
- Add it to the plan now, then take it
- Take it at a smaller size
- Skip it: if it is not written, it is not a plan
Show the answer
Skip it: if it is not written, it is not a plan. The plan is the one you wrote before the day started, not one you invent now. Lesson ›
135. Your stop is set, your size fits the rule, and the trade is in your plan. But you are rushing. Is the trade ready?
- Yes: three out of four is enough
- No: one "no" means no trade yet
- Yes, if the size is smaller
- Yes, if the setup looks strong
Show the answer
No: one "no" means no trade yet. All four answers must be yes. Stand up for five minutes, then ask again. Lesson ›
136. In a trading journal, what is R?
- The amount you risked on the trade
- Your total profit for the month
- The price where you got in
- How many trades you made
Show the answer
The amount you risked on the trade. R is the amount you risked. Results in R let you compare every trade, whatever its size. Lesson ›
137. You cannot fill in the stop price before you click. What does that tell you?
- Fill it in after the trade
- Trade a smaller size instead
- Copy the stop from your last trade
- No trade: you have your answer
Show the answer
No trade: you have your answer. The plan is written before you click. No stop in the box means no trade. Lesson ›
138. Why write how you felt, in one word, for every trade?
- It is needed to work out R
- It can warn you about tilt before your balance does
- It makes the next trade more likely to win
- It replaces the reason tag
Show the answer
It can warn you about tilt before your balance does. Tilt is trading while upset. A run of "rushed" or "angry" shows in this column before it shows in your balance. Lesson ›
139. You took a trade because you were bored, and it won. Which tag do you write?
- My setup, since it won
- Leave the tag blank
- Bored
- Winning it back
Show the answer
Bored. Tag the real reason, win or lose. Later you add up each tag, and only honest tags show where the money goes. Lesson ›
140. Trade A risked $100 and made $200. Trade B risked $200 and made $200. Which did better, in R?
- Trade A: +2R against +1R
- Trade B, with +2R
- Neither: both made $200
- You cannot compare different sizes
Show the answer
Trade A: +2R against +1R. A made twice its risk (+2R); B made once its risk (+1R). Dollars hide this, and R shows it. Lesson ›
141. In this lesson, what is your leak?
- The tag that loses the most
- A trade with no stop
- A fee you forgot about
- Your biggest single loss
Show the answer
The tag that loses the most. Add up each tag in R. The one that loses the most is your leak. Lesson ›
142. Why use the same few tags every time?
- So the journal looks tidy
- So each tag's results can be added up
- Because new tags cost money
- So you trade less often
Show the answer
So each tag's results can be added up. Tags only help if you can add them up. New labels every time hide the leak. Lesson ›
143. Example tags after 20+ trades: my setup +3R, boredom −6R, news −1R. Which one is the leak?
- My setup
- News
- Boredom
- None of them
Show the answer
Boredom. Boredom loses the most, −6R. That is the one kind of trade to stop for a month. Lesson ›
144. You have logged 12 trades, and one "news" trade made +3R. What now?
- Trade the news more often
- Drop every other tag
- Double your size on news trades
- Keep logging until at least 20 trades
Show the answer
Keep logging until at least 20 trades. With fewer than 20 trades, one lucky or unlucky trade can fool you. Twenty is a floor, not a finish line. Lesson ›
145. You found your leak. What is the best next step?
- Stop that kind of trade for a month and change nothing else
- Fix the leak and two other habits at the same time
- Stop trading every tag for a month
- Raise your size on your best tag to make up for it
Show the answer
Stop that kind of trade for a month and change nothing else. One fix at a time, so you can see what it did. Change three things at once and you cannot tell which one helped. Lesson ›
146. You won 10 of your 20 trades this week. What is your win rate?
- 10%
- 20%
- 50%
- 100%
Show the answer
50%. Win rate is the share of trades that made money: 10 out of 20 is 50%. Lesson ›
147. Which number in the weekly review do you fully control?
- Your win rate
- Your average win
- The market's direction
- Your rule breaks
Show the answer
Your rule breaks. Moved stops, skipped checklists and trades outside your plan are all your choice. That count matters more than profit: aim for zero. Lesson ›
148. After the review, how many changes do you make for next week?
- As many as the numbers show
- One, written at the top of your journal
- None until the month ends
- Three, one for each number
Show the answer
One, written at the top of your journal. Only one, so at the next review you can check whether you kept it and what it did. Lesson ›
149. With a 35% win rate and average losses of 1R, what average win do you need just to break even, before fees?
- 0.35R
- 1R
- About 1.9R
- 5R
Show the answer
About 1.9R. 0.65 ÷ 0.35 = about 1.9R, nearly 2R. With a smaller average win, the average trade loses even before fees. Lesson ›
150. Your win rate is 35%, your average loss is 1R, and your average win is 1.5R. Before fees, what happens on average?
- You lose money
- You break even exactly
- You make money, since each win is bigger than each loss
- It depends only on the market
Show the answer
You lose money. At 35% wins you need nearly 2R per win to break even. 1.5R falls short, so the average trade loses. Lesson ›
151. What does the 30-day reset ask for?
- A weekend off, then your old size
- 30 days of practice with no real money
- 30 days of trading at half size
- A week of practice, then real money
Show the answer
30 days of practice with no real money. Thirty days with no real money. A month gives the loss time to cool and gives you enough trades to see your habits. Lesson ›
152. In practice, you skip the stop because the money is not real. What does that train?
- Nothing: practice does not count
- Faster reactions
- The same habits that cost you
- Better instincts for later
Show the answer
The same habits that cost you. Practice without rules just trains the habits that cost you. Follow every rule as if the money were real. Lesson ›
153. At the end of the 30 days, what does your practice journal show?
- Whether you kept the rules
- Exactly what you would have earned
- Which setups will win next month
- Where the market will go next
Show the answer
Whether you kept the rules. Log every practice trade like a real one: tag, feeling, result in R. At the end of the month, it shows whether you kept the rules. Lesson ›
154. It is day 12 of your reset, and you feel ready for real money. What does the plan say?
- Go back now, since you feel ready
- Go back with half your usual size
- Skip the journal from here on
- Keep practicing until day 30
Show the answer
Keep practicing until day 30. The reset is thirty days, not until you feel better. A good feeling on day 12 does not change the plan. Lesson ›
155. Why does the reset last 30 days and not just a weekend?
- Charts only repeat once a month
- The loss cools, and you get enough trades to see your habits
- It takes a month to learn every pattern
- Real accounts lock for 30 days
Show the answer
The loss cools, and you get enough trades to see your habits. A month gives the loss time to cool and gives you enough trades to see your own habits. A weekend does neither. Lesson ›
156. How big should your first real trades be after the reset?
- Your old size
- The smallest size you can
- Twice your old size, to catch up
- Whatever feels right that day
Show the answer
The smallest size you can. So small that a loss feels boring. Any profit will be tiny, and that is the point. Lesson ›
157. A real trade kept every rule but lost money. How do you score it?
- Pass
- Fail
- Fail, unless the next one wins
- It does not count
Show the answer
Pass. The test is your rules, not your profit. A trade that kept every rule is a pass, even if it lost. Lesson ›
158. At your new size, a losing trade still stings. What does that tell you?
- You need a wider stop
- Trade more to make it back
- Stop keeping the journal
- The size is too big for this stage
Show the answer
The size is too big for this stage. If a loss still stings, the size is too big for this stage. Go smaller until a loss feels boring. Lesson ›
159. Your first 3 real trades: 2 kept every rule and lost, 1 broke a rule and won. How many passes?
- None
- One
- Two
- Three
Show the answer
Two. The two trades that kept every rule pass, even though they lost. The winner broke a rule, so it fails. Lesson ›
160. When may you raise your size, and by how much?
- After one big win, by a lot
- After a long run with no rule breaks, by one small step
- Once the account is back to even, to your old size
- Whenever a trade feels easy, by double
Show the answer
After a long run with no rule breaks, by one small step. Grow slowly: one small step after a long clean run, then prove the rules again at the new size. Lesson ›
161. At least how many practice trades must be in your journal before you go back?
- 10
- 20
- 50
- 100
Show the answer
50. At least 50, all logged. With fewer, luck can still hide your habits; fifty is a floor, not a target. Lesson ›
162. You pass all four checks. What does that mean?
- You will make money from now on
- Your rules held up in practice, not a promise of profit
- You can go back to your old size
- You can stop keeping a journal
Show the answer
Your rules held up in practice, not a promise of profit. Passing only means your rules held up in practice. It is not a promise of profit, so you still come back small. Lesson ›
163. You broke a rule on 2 of your last 10 practice trades. Does the 9-of-10 check pass?
- No: two breaks in ten means more practice
- Yes: 8 of 10 is close enough
- Yes, if those trades still won
- Yes, if your average R is above zero
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No: two breaks in ten means more practice. The check needs rules kept on at least 9 of every 10 trades. Two breaks in ten means more practice. Lesson ›
164. What does a journal with no gaps mean?
- Only the trades you are proud of
- One entry per day
- Only the trades that kept the rules
- Every practice trade logged, the ugly ones too
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Every practice trade logged, the ugly ones too. Every practice trade, with the same columns each time: stop, size, reason, feeling, result in R. No gaps means no guessing. Lesson ›
165. Example: 50 practice trades, total +6R, but 10 of them broke a rule. Are you ready?
- Yes: the average is above zero
- No: 10 breaks in 50 is 2 in every 10
- Yes: 50 trades is enough on its own
- No: +6R is too small to count
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No: 10 breaks in 50 is 2 in every 10. The average, +0.12R, is above zero, but rules were kept on only 8 of 10 trades. Miss one check, and you keep practicing. Lesson ›