1. What does "revenge trading" mean?
Trading a strategy your mentor recommended Entering a trade specifically to win back a recent loss, without a real setup Trading only during high-volatility news events Copying another trader's positions
2. Why do experienced traders think in probabilities across many trades rather than judging each trade individually?
Because a single trade's outcome is mostly noise; the edge shows up over a large sample Because brokers require a minimum number of trades Because losses don't matter if you trade enough Because probability guarantees a win eventually
3. What is the primary purpose of a trading journal?
To satisfy tax requirements To reveal behavioral patterns and mistakes you'd otherwise repeat To automatically execute trades To calculate leverage
4. What's the recommended response to a normal losing streak that happened while following your plan exactly?
Immediately double your position size to recover losses Abandon the strategy entirely Treat it as the expected cost of doing business and keep following the plan Switch to a completely different market
5. What is "overtrading"?
Reviewing your trades too often Taking more trades, or larger trades, than your plan calls for Trading only major currency pairs Using too much fundamental analysis