TRADING BASICS
This term represents a full unit of price movement in a market, with each being made up of a set number of ticks
What is a point?
These are the 3 deadly sins of trading.
What is Greed, Fear, and Pride?
These three things must occur for a valid support-and-resistance entry in this strategy
What is a breakout, retest, and engulfing candle?
This feature allows traders to receive a notification when price reaches a certain level or a custom condition is met.
What is an alert?
This rule can cause a trader to lose access to an account if they go too long without placing a trade
What is the inactivity rule?
This is the number of months that have 28 days.
What is all 12?
This order type executes immediately at the best available price
What is a market order?
After taking a loss, a trader immediately takes another trade mainly to try to win the money back.
What is revenge trading?
Instead of choosing a random profit target, this strategy often aims for an area where stops or pending orders are likely clustered
What is liquidity?
This feature lets a trader measure potential profit, potential loss, and risk-to-reward directly on the chart before entering
What is the Long/Short Position tool?
This rule limits how much of a trader’s total profit may come from a single trading day
What is consistency rule?
A man shaves several times a day but still has a beard. This is his profession.
What is a barber?
This represents the opening, high, low, and closing prices for a specific period of time.
After a string of winning trades, this psychological bias can make traders take excessive risk because they believe they can’t lose.”
What is overconfidence bias/ overconfidence?
A market breaks above resistance, fails to hold, then closes back below the level.
What is a failed breakout?
This feature lets you replay historical price action candle by candle as if the market were moving live
What is replay mode?
This rule limits how much a trader can lose in a single trading day and triggers automatic liquidation once the limit is reached.
What is the daily loss limit?
An electric train is traveling north. The wind is blowing east. This is the direction the smoke travels.
This term refers to the price difference between where a trade is expected to execute and where it actually gets filled.
What is slippage?
This happens when a trader takes too many trades, often because of boredom, frustration, FOMO, or the urge to make back losses.
What is overtrading?
A breakout candle that closes only slightly beyond the level may be considered weaker because it lacks this
Response: What is displacement?
This feature displays a market order on the chart when the Buy or Sell button is clicked, before the order is executed.
What is projected market order?
This drawdown method moves upward as the account reaches new equity highs but does not move back down.
What is trailing drawdown?
A farmer has 17 sheep. All but nine run away. This many sheep remain.
What is nine?
This term refers to the total number of shares, contracts, or lots traded for a particular asset during a specific time period, often used to confirm trends or reversals.
What is volume?
This causes a trader to enter a trade late after seeing price move without them, mainly because they’re afraid of missing the opportunity.
Even if price breaks a support or resistance level, this market condition can make the setup lower quality because price lacks clear directional movement
What is consolidation?
This TradingView feature allows traders to organize, hide, lock, or select multiple drawings and indicators from one panel.
What is the Object Tree?
This type of drawdown is based on the account’s highest equity reached and can rise even from unrealized profits during an open trade
What is intraday trailing drawdown?
You enter a dark room containing a candle, a lamp, and a fireplace, but you only have one match.
What is the match?