Trading Test Trading Knowledge Test Instructions: Answer 25 randomly selected questions from the full Trading question bank. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. What is relative volume? A dividend payment Current volume compared to normal volume A stock split A broker fee 2. Why should traders avoid risking too much on one trade? One loss can damage the account severely It guarantees better results It removes fear It increases discipline automatically 3. What is scalping? Investing monthly Holding trades for years Buying only ETFs Taking very short-term trades for small price movements 4. What is support? A price area where buyers may step in A tax form A broker support chat A market holiday 5. What is a reversal? A continuation of the same trend only A dividend date A change in market direction A broker login 6. Using the image, what chart pattern is shown in image #5? Ascending Triangle Cup and Handle Bear Flag Bull Flag 7. What is revenge trading? Taking a planned break Following a plan Trading emotionally after a loss to quickly win money back Reducing position size 8. What is a triangle pattern? A broker rule A tax form A dividend chart A consolidation pattern where price tightens before a possible breakout 9. Using the image, what is shown in image #17? Liquidity sweep Bearish reversal Exit example Entry example 10. Using the image, what is shown in image #24? Fake breakout Bearish reversal pattern Resistance rejection Bull Flag continuation pattern 11. What is the candle body? The broker fee The highest price only The lowest price only The area between open and close 12. What is a candle wick? A broker password The line showing price extremes beyond the body A market holiday A dividend mark 13. What is overtrading? Reducing risk Trading with discipline Taking only planned trades Taking too many trades without quality setups 14. What is a take profit level? A planned level where a trader exits with profit A required tax payment A broker login A losing trade 15. Why is discipline important? It removes market risk It replaces education It helps traders follow their plan and manage risk It guarantees every trade wins 16. What is a continuation setup? A market holiday A setup expecting no movement A guaranteed profit A setup expecting the current trend to continue 17. What can a long lower wick suggest? A broker fee No buyers Buying pressure near the low Guaranteed bearish continuation 18. What is an exit? A watchlist A broker password The first chart candle The point where a trader closes a trade 19. What is consolidation? A dividend plan Price moving straight up forever Price moving sideways in a range A broker fee 20. What is an indicator? A tool calculated from price, volume, or other market data A guaranteed trading signal A tax report A broker password 21. What is the 1–2% risk rule? Making 1–2 trades per year Using 100% of capital Risking only 1–2% of account capital on a single trade Guaranteeing 2% daily profit 22. What is a false breakout? Price breaks a level but quickly reverses back A dividend increase A broker error only A guaranteed win 23. Why is a trading plan important? It reduces emotional decisions and creates structure It guarantees profits It removes losses It replaces education 24. What is swing trading? Holding trades for days to weeks Buying only bonds Holding for 20 years Trading every few seconds only 25. What is confirmation in trading? Additional evidence supporting a trade idea A guaranteed result A broker bonus A tax receipt Submit Test