Trading Psychology Bonus Quiz

Imagine you've found a mysterious old trading journal left by a legendary trader. It promises wealth beyond imagination but warns of "the curse of taking too much risk." What psychological factor could cause you to ignore the warning and dive in anyway?

• Overconfidence

• Fear of missing out

• Excessive caution

• Indifference

You're trapped in a haunted trading room, and every failed trade whispers in your ear, urging you to make more reckless decisions. What's the best strategy to manage your emotions and escape with your sanity?

• Doubling down on trades

• Taking a break and reassessing your approach

• Ignoring all emotions

• Blaming external factors

Sarah is trading 1 standard lot of USD/JPY. She enters the trade at 109.50 and exits at 110.00. Given that the pip value is $10, what is her profit?

• 100

• 500

• 50

• 10

Under a full moon, stress levels peak, and suddenly your view of the market narrows, as if fog is descending. What cognitive effect of high stress is creeping in, affecting your judgment?

• Enhanced analytical ability

• Tunnel vision

• Improved memory

• Increased patience

The eerie ticking of a clock fills the room, and every tick warns you against impulsive moves. What can you use as a charm against rash decisions when the pressure builds?

• Impulsive decision-making

• Following every market trend

• Utilizing a checklist for each trade

• Isolating yourself from other opinions

Trader John has $1,000 in his account and decides to trade EUR/USD. He buys at 1.1150 and sells at 1.1200. How many pips did he gain?

• 50

• 100

• 10

• 5

You're haunted by the ghost of a big loss, whispering doubts. How can you confront this specter and keep a positive outlook?

• Seek to immediately recover the loss

• Reflect on the experience to identify lessons learned

• Ignore the loss and continue trading as usual

• Blame market conditions for the loss

Calculate the free margin if your equity is $8,000 and you have open positions requiring a total margin of $2,500.

• $5,500

• $6,000

• $7,500

• $10,500

If Tom's account equity is $20,000 and the used margin is $5,000, what is his margin level?

• 250%

• 300%

• 350%

• 400%

You find yourself drawn to a crowd of traders, all moving in the same direction. Their eyes glaze over as they chant, "Follow the trend, don't break from the crowd." What is this sinister phenomenon called?

• Relying on one's own research and analysis

• Following the crowd and making similar trades

• Consistently avoiding popular market trends

• Prioritizing technical indicators over market sentiment