General evaluation on your first trading year: Сheck out your performance

Apr 8, 2023

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The major challenge of first-year traders revolves around navigating the global market. This assessment has been curated to measure your trading performance over your first year. It starts with the fundamentals of trading and gradually slides into a more technical approach. By the end of this assessment, you would have had insight into what a global market trader should know in their first year. You will also brush up on your trading decisions to improve your craft.

As a first-year trader, which method assures the safest possible result when dealing with a volatile market?

Trading multiple assets

Trading multiple assets adds to the trading risk.

Not trading at all because it is risky

Not trading doesn’t initiate any result.

Confluence trading

By combining two or more trading strategies, you can pinpoint how to approach the volatile market.

Scalping

Scalping is not the best approach towards an aggressively volatile market.

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As a rule of thumb, what is the required box to check before entering a market?

Be sure that your levels are visible

Identifying possible support and resistance levels helps you know where price reversal may take place.

Know what asset you are trading

The asset you are trading does not directly affect how you enter the market.

Have a plan B when things get out of hand

Be sure you have an exit strategy before you open a position.

Set your confidence level to maximum

Maximum confidence is not a requirement to enter a market.

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As a first-year trader what will you do when your trading strategy doesn't work?

Quit trading

When you quit trading, you miss out on more.

Dump that strategy and adopt another

Dumping one strategy for another doesn't guarantee success.

Continue to be hopeful, one day it could work

Probability trading doesn’t provide the best result.

Check to see what’s wrong with your approach, then re-strategize

Examining a trading strategy lets you understand how it works and helps you become better.

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A demand zone on the price chart shows where large cooperation like banks has placed massive buy orders. What is the best way to approach a demand zone?

Wait to see if it is a demand zone

Waiting could lead to more loss of opportunities.

Disregard the zone and continue scalping

Scalping contradicts the patience involved in trading a demand zone.

Analyze the trend as it approaches the demand zone

It is best to study the price progression as it moves toward the demand zone.

Place the buy order anywhere on the chart

The price movement often reverses before reaching a significant price point.

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You observe a potential falling knife on the price chart. Which trading indicator would you deem most suitable to speculate the catching of the falling knife?

Stochastic

This is not the ideal indicator to catch a falling knife.

Relative Strength Index

The relative strength index makes catching a falling knife easy.

Moving Average

This is not the ideal indicator to catch a falling knife.

Bollinger Bands

This is not the ideal indicator to catch a falling knife.

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The 80/20 rule is a trading strategy used to trade the following market conditions, except:

A stagnant market