Academy Trading Psychology Subject Test
5

Trading Psychology — Subject Test

20 questions · Multiple choice · Pass with 70% · Results shown at the end
Question 1 of 20
What is herd mentality in trading?
A
Trading alone
B
Following the crowd and buying because everyone else is buying
C
A contrarian strategy
D
A risk management approach
0 of 20 answered
Question 2 of 20
What is a trading plan?
A
A set of rules for when to enter exit and manage trades
B
A list of coins to buy
C
A profit target only
D
A broker agreement
0 of 20 answered
Question 3 of 20
What is greed in trading?
A
Taking profits at target
B
Holding too long hoping for more profit and giving back gains
C
Using stop losses
D
Having a trading plan
0 of 20 answered
Question 4 of 20
When everyone on social media is buying — what should a smart trader do?
A
Buy immediately with maximum size
B
Analyse the chart independently and be cautious
C
Follow the most popular influencer
D
Ignore price action
0 of 20 answered
Question 5 of 20
What is anchoring bias?
A
A type of chart pattern
B
Being too attached to a specific price level from the past
C
A moving average strategy
D
A risk management mistake
0 of 20 answered
Question 6 of 20
What is revenge trading?
A
A profitable strategy
B
Trading impulsively to recover losses quickly
C
A type of scalping
D
Using high leverage
0 of 20 answered
Question 7 of 20
What is recency bias?
A
Overweighting recent events when making decisions
B
A type of FOMO
C
Using recent indicators
D
Trading based on news
0 of 20 answered
Question 8 of 20
What is the main cause of most trading losses?
A
Bad indicators
B
Poor risk management and emotional decisions
C
Wrong timeframe
D
Too many trades
0 of 20 answered
Question 9 of 20
What should you do when you feel emotional during a trade?
A
Make quick decisions
B
Trust your original plan and avoid impulsive changes
C
Add to the position
D
Check social media
0 of 20 answered
Question 10 of 20
What is boredom trading?
A
A profitable strategy
B
Opening trades out of boredom with no valid setup
C
A type of scalping
D
A momentum strategy
0 of 20 answered
Question 11 of 20
What is the casino mindset for traders?
A
Gambling with large positions
B
Focusing on edge over many trades rather than individual outcomes
C
Never taking losses
D
Always doubling down
0 of 20 answered
Question 12 of 20
What is the best action after a losing trade?
A
Open a bigger trade immediately
B
Take a break and review what went wrong
C
Double down on the same direction
D
Increase leverage
0 of 20 answered
Question 13 of 20
How does fear of losing affect trading?
A
It has no effect
B
It causes traders to exit winning trades too early or avoid good setups
C
It improves decision making
D
It reduces position size correctly
0 of 20 answered
Question 14 of 20
What does thinking in probabilities mean?
A
Every trade will win
B
No trade will win
C
Focusing on long term edge rather than individual trade outcomes
D
Calculating exact win rate
0 of 20 answered
Question 15 of 20
What is confirmation bias?
A
Confirming trades with your broker
B
Only looking for signals that confirm your existing belief
C
Using multiple indicators
D
A trading strategy
0 of 20 answered
Question 16 of 20
What should you do when you feel FOMO?
A
Buy immediately
B
Wait for a pullback and proper setup
C
Double your position size
D
Check social media for confirmation
0 of 20 answered
Question 17 of 20
What is FOMO in trading?
A
A trading strategy
B
Fear of Missing Out — buying impulsively after a big move
C
A type of indicator
D
A risk management rule
0 of 20 answered
Question 18 of 20
What is overconfidence in trading?
A
Having a good trading plan
B
Risking too much after a winning streak believing you cannot lose
C
Being confident in your strategy
D
Using proper risk management
0 of 20 answered
Question 19 of 20
What separates professional traders from beginners?
A
Better indicators
B
Emotional discipline and consistent risk management
C
More capital
D
Trading more frequently
0 of 20 answered
Question 20 of 20
What is the trading journal used for?
A
Recording only winning trades
B
Tracking all trades to identify patterns and improve performance
C
A legal requirement
D
Social media posts
0 of 20 answered
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