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Quiz: What Area of Trading Psychology Should You Focus On?

Posted by BluFX

 

Quiz what type of trading psychology

Quiz time! What area of your trading psychology needs a little extra work? Take our quiz and find out whether you're an impulsive trader, an anxious trader - or somewhere in between - and discover tips to up your game. 


Read: 3 Steps for Good Mental Health While Trading ⟶


What Area of Trading Psychology Should You Focus On?

1. When placing a trade, do you tend to...?

  1. Place the first trade you see that seems profitable - you don't want to miss out on profit potential
  2. Look at technical indicators that match your trading plan's entry points - you don't want to stray outside of your plan
  3. Wait until you see a trade that is clearly profitable - you don't want to make avoidable mistakes 

2. Have you ever considered that you are missing out on trades because you are afraid of making a mistake?

  1. Yes, every time I consider making a move my fear of losing trades stops me from doing it
  2. Yes, I don’t know why but I am afraid of making a mistake
  3. No, I never think about this

3. Depending on the position you hold, there is definitely a strategy that fits your personality. Which strategy do you believe best suits you?

  1. I want all of my trades to be winners
  2. I tend to look at charts and technical indicators 
  3. My trading plan focuses on risk management 

4. Do you take full control of your trades?

  1. No, I only do it sometimes; depends on the trade
  2. Yes, I have already decided on a stop loss for every trade
  3. I prefer to take complete control of my trades

5. Would you ever change your trading method, because of doubters’ remarks?

  1. The critic would be right, I am quick to look for a better approach
  2. It depends how serious the remark is, if it's reasonable I'll have an alternative strategy to fall back on
  3. I would take a thoughtful approach and then decide

6. Are you aware of your biases? Trustworthiness?  How often do you consider the source of information when making trades?

  1. More often than not, I prefer to jump in and make trades immediately. Trading is all about haste and being in the moment to capture those profitable moments quickly
  2. I’m more realistic in trading and only open a trade if it aligns with my trading strategy 
  3. I put lots of work into researching each trade and executing it with confidence

7. How does your confidence in your trading vary throughout the day?

  1. My confidence is at its highest when I see the market moving in my favour
  2. My approach to trading depends on what stage of the day I'm in and if any news related to the asset has been reported that day
  3. I have confidence in the trade at all times, based on my knowledge of the asset and technical analysis

8. Are you able to get your money out of the market when you need to?

  1. That rarely happens
  2. It depends on how far I am in a trade, but after taking three or four pulls and seeing no new highs around the market, I start to question my original thinking behind taking the trade. At this point, I will begin looking to get off of a trade that is not working for me
  3. Yes, it is easy to get my money out when I need to. I have multiple exit strategies in place; so a pullback in the market has no effect on my ability to liquidate my positions

9. Does the level of risk influence how much you trade?

  1. I trade more when I am more impatient or optimistic. This is due to the fact that my emotions kick in and I take excessive risks
  2. The amount of risk I take is directly related to how rational I am feeling. If I have a lot of money in my account, for example, I might not be as nervous about risking it because if all goes wrong at least I know that I am okay financially
  3. Sure. The riskier the trade, the more I will reduce the size of my positions in order to preserve my capital and drop any unrealistic expectations

10. How do you handle a losing streak?

  1. I try a different strategy until something works out for me
  2. I come up with logical reasons that explain why my method is the best in the long run. I may put my trading on hold for some time as I recover.
  3. Look at the whole picture, learn from it, and decide what's next

If you answered...

Mostly As

You are likely an impulsive trader. You're afraid of missing out on profit, but in the process, you might be taking trades without considering the bigger picture. It’s possible that your trading is being held back by emotional issues. You might not have the guts to trade in line with your system or you may be too impatient. Or maybe you're still new to trading and haven't yet learned the lessons that will help you become a great trader. Here’s how to brush up on your trading psychology:

  • Check your emotions and don't let them affect your decision making
  • Always have a trading plan and stick to it 
  • Don't chase after a trade
  • Learn to cut your losses short and take profits early
  • Maintain discipline and risk management
  • Have a long-term view of trading

Mostly Bs

You are likely an intuitive trader. You have a gut feeling about the market and when you should make trades. Your intuition is often right but, like most traders, you may struggle with your trading psychology at times.

Most importantly, stick to your trading plan. If you are disciplined and begin to feel as though you want to deviate from your plan, then that is likely a cue that it is time to re-evaluate your plan. Tighten up the loose ends of your trading strategy and keep trading with discipline. You've got this!

Mostly Cs

You understand the importance of managing risk and have a good grasp on your trading psychology. However, there is still room for improvement. Make sure you are not over-trading or over-leveraging yourself. You should also monitor your emotions and try to stay balanced in the face of setbacks or loss.

Read: How to Trade Profitably On a BluFX Account ⟶

Tags: Quiz

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