Lesson 7 of 7 · 12 min
Course check: test yourself Flashcards for the psychology vocabulary, and ten questions on the cycle, FOMO, revenge, overtrading, the journal, routine and streaks.
By the end you'll be able to
Recall the trading-psychology vocabulary from the whole course Answer mixed questions across all six lessons Decide whether you are ready for Choosing a Broker Free course
Enrol in “Trading Psychology” to start this lesson Enrolling is free. Your progress, quiz scores and certificate are kept in your account, on every device.
This course is about the trader, not the market, so the questions are about what you would do.
Flashcards
Trading-psychology terms
1 / 10
Term Loss aversion Tap to reveal Definition The tendency to feel a loss roughly twice as strongly as an equal gain. It is why traders cut winners early and let losers run. Term FOMO Tap to reveal Definition Fear of missing out: entering a trade late, without a setup, because price is moving and you feel left behind. Usually the worst price of the move. Term Revenge trading Tap to reveal Definition Taking a new trade immediately after a loss to win the money back, usually larger and without a setup. One of the fastest ways to turn a normal loss into a serious one. Term Overtrading Tap to reveal Definition Taking more trades than your method produces: trading boredom, trading noise, or trading to feel busy. Costs add up and quality falls. Term Tilt Tap to reveal Definition An emotional state, usually after losses, in which decisions become impulsive and rules are abandoned. The remedy is to stop trading until it passes. Term Trading journal Tap to reveal Definition A record of every trade: the reason, the plan, the result and how you felt. Over time it shows which setups and which behaviours actually make money. Term Confirmation bias Tap to reveal Definition Looking for evidence that supports what you already believe and ignoring the rest. In trading, finding a reason to stay in a losing position. Term Discipline Tap to reveal Definition Doing what the plan says when you do not feel like it. Built through routine and a daily loss limit, not through willpower alone. Term Daily loss limit Tap to reveal Definition A fixed loss, in money or in consecutive losses, at which you stop trading for the day. It prevents one bad session from becoming a disaster. Term Losing streak Tap to reveal Definition Several losing trades in a row. Streaks are a normal product of chance, and their length is what decides how small risk per trade must be.
← Previous Shuffle Next →
Course quiz
Course quiz: 10 questions
Question 1 of 10
Where on the emotional cycle are stops most often skipped?
A Euphoria B Hope C Relief
Next question Question 2 of 10
A trader consistently closes winners at +0.5R and lets losers reach −1.5R. This is:
A Loss aversion in action B Good risk management C A sign of a broken method
Next question Question 3 of 10
Price has run 80 pips from the level you planned to buy. The disciplined action is:
A Wait for the next pullback; the entry is missed B Buy now with a tight stop C Buy now at double size to catch up
Next question Question 4 of 10
Which sequence is a revenge trade?
A Loss, fifteen-minute break, new setup, normal size B Loss, immediate re-entry, larger size, no setup C Loss, journal entry, end of session
Next question Question 5 of 10
Your plan generates about five setups a week. A sensible trade ceiling is:
A Around five to six per week B Fifteen, to make the most of the week C There should be no ceiling
Next question Question 6 of 10
Plan-followed trades average −0.3R over 80 trades; plan-broken trades average −0.2R. The problem is:
A The method: it loses even when followed B Discipline C Nothing; the numbers are close
Next question Question 7 of 10
Which belongs in the 'during' part of a routine?
A Only taking setups that match the written definition B Reading the economic calendar C Writing the journal
Next question Question 8 of 10
Your one-word feeling check says 'revengeful'. The routine's response:
A Reduce size or sit the session out B Trade normally; feelings do not affect the chart C Trade larger to prove the feeling wrong
Next question Question 9 of 10
At a 40% win rate over 300 trades, a streak of seven losses is:
A Expected at some point B Proof the method has failed C Impossible for a profitable method
Next question Question 10 of 10
Four straight losses, all valid setups. The step-down rule says:
A Halve size until two consecutive wins, then restore B Add a new filter to the method C Double size to recover faster
See my score What next
Scored 8 or more: you are ready for Choosing a Broker , the next course.
Scored 5 to 7: revisit the lessons behind the questions you missed, then retake the quiz.
Below 5: go through the course again, and start the journal today. This course only works when it is practised.
Mark lesson complete
Free certificate
Mark every lesson complete and pass the final quiz with 70% or more to get a certificate of completion. You can download it as a PDF or share it on LinkedIn.
Get your certificate