Trading Test

1. What is drawdown?

A chart pattern A dividend A profit target A decline in account value from a previous high

2. What is a moving average?

A broker fee An average price over a selected period A fixed profit target A tax rule

3. Using the image, where is the stop loss placed in image #16?

Above resistance At the exact entry Randomly Below the support or swing low

4. Why is capital preservation important?

You need capital to continue trading It guarantees every trade wins It removes volatility It replaces analysis

5. What does RSI commonly measure?

Company revenue Broker fees Momentum and overbought or oversold conditions Dividend yield only

6. Why should traders wait for good entries?

It avoids all volatility It removes losses It guarantees profit Better entries can improve risk-to-reward

7. Why is discipline important?

It replaces education It guarantees every trade wins It helps traders follow their plan and manage risk It removes market risk

8. What is the 1–2% risk rule?

Guaranteeing 2% daily profit Making 1–2 trades per year Using 100% of capital Risking only 1–2% of account capital on a single trade

9. Why should traders review losing trades?

To increase revenge trading To feel worse only To learn from mistakes and improve strategy To ignore risk

10. What is a bear flag?

A dividend setup A tax signal A bullish reversal only A bearish continuation pattern after a strong move down

11. What is a trading plan?

A broker password A written set of rules for entries, exits, risk, and strategy A random guess A tax document

12. What does consistency mean in trading?

Risking randomly Winning every trade Following a repeatable process over time Changing strategy daily

13. What is a pullback?

A permanent market crash A trading password A broker fee A temporary move against the main trend

14. Using the image, what does the trendline in image #20 indicate?

Support bounce Downtrend resistance Double bottom Bullish breakout

15. What is a shooting star candle?

A candle with a small body and long upper wick A candle with no wick A tax pattern A guaranteed bullish signal

16. What should a trader do after multiple emotional losses?

Increase leverage Ignore the losses Trade bigger immediately Pause, review, and reduce risk before continuing

17. What is the main difference between trading and investing?

Trading is usually shorter-term; investing is usually longer-term There is no difference Trading is risk-free Investing is always daily

18. Using the image, what does the head and shoulders pattern in image #10 usually signal?

Guaranteed breakout Bullish continuation Bearish reversal Sideways consolidation

19. What is support?

A broker support chat A tax form A price area where buyers may step in A market holiday

20. What is an uptrend?

Only red candles Lower highs and lower lows Higher highs and higher lows No price movement

21. What is a doji candle?

A guaranteed reversal A candle where open and close are very close A candle with no wick ever A dividend pattern

22. What is consolidation?

Price moving straight up forever A broker fee Price moving sideways in a range A dividend plan

23. What does a 1:3 risk-to-reward ratio mean?

Trading 3 times daily Risking $3 to make $1 Guaranteed 3 wins Risking $1 to potentially make $3

24. What is a hammer candle?

A dividend signal A candle with a small body and long lower wick A candle with no price movement A guaranteed breakout

25. Using the image, what is the key lesson in image #35?

Ignoring risk management Trading without a plan Random entries Proper stop loss placement below swing low