Question 1 of 20
What is portfolio management?
B
Diversifying and managing multiple positions to reduce overall risk
C
A type of chart analysis
Question 2 of 20
What is breakeven stop loss?
B
Moving stop loss to entry price after trade goes in profit
0 of 20 answered
Question 3 of 20
What is a trailing stop loss?
B
A stop loss that moves with price to lock in profits
0 of 20 answered
Question 4 of 20
What is the purpose of a stop loss?
B
To limit the maximum loss on a trade
C
To increase position size
0 of 20 answered
Question 5 of 20
What does diversification mean?
A
Putting all money in one asset
B
Spreading investments across different assets to reduce risk
C
Using multiple indicators
D
Trading multiple timeframes
0 of 20 answered
Question 6 of 20
What is a good minimum risk to reward ratio?
0 of 20 answered
Question 7 of 20
What is the danger of high leverage?
B
It amplifies both profits AND losses
0 of 20 answered
Question 8 of 20
What is take profit?
B
An order that automatically closes a winning trade at a target price
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Question 9 of 20
What is risk to reward ratio?
A
The ratio of winners to losers
B
How much you risk compared to how much you aim to gain
C
Your account balance divided by position size
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Question 10 of 20
Why is risk management more important than win rate?
A
It is not more important
B
A system with 40% win rate can be profitable with good RR
C
Win rate determines everything
D
Risk management only matters for beginners
0 of 20 answered
Question 11 of 20
What is leverage in trading?
B
Borrowing capital to increase position size
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Question 12 of 20
What is the 2% rule in trading?
A
Never lose more than 2% of your account on one trade
B
Always make 2% profit per trade
D
Trade only 2 times per day
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Question 13 of 20
Study this risk reward setup:
This trade shows Risk of 1 and Reward of 3 — is this a good trade to take?
A
No — reward should always equal risk
B
Yes — 1:3 risk reward is excellent
C
No — minimum RR should be 1:10
D
Yes but only if RSI confirms
0 of 20 answered
Question 14 of 20
Study this trade setup carefully:
Stop loss is placed below the swing low for a LONG trade — is this correct?
A
Yes — stop loss below swing low is correct for a LONG
B
No — stop loss should be above entry
C
No — stop loss should be at entry price
D
Yes but only for SHORT trades
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Question 15 of 20
What is a stop loss?
B
An order that automatically closes a losing trade at a set price
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Question 16 of 20
What is risk per trade as a percentage recommended for beginners?
0 of 20 answered
Question 17 of 20
What is the biggest mistake new traders make with risk?
B
Risking too much per trade trying to get rich quickly
D
Using proper position sizing
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Question 18 of 20
What happens when you risk too much per trade?
B
A few losing trades can destroy your account
C
Risk has no effect on account
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Question 19 of 20
What does RR of 1:3 mean?
0 of 20 answered
Question 20 of 20
What is position sizing?
A
The size of your trading screen
B
How much of your account you allocate to a single trade
C
The number of trades per day
0 of 20 answered