Trade Planning and Risk Quiz - Filled At Market

1. What is the primary purpose of a trading plan?

To copy strategies from other traders
To eliminate the need for market research
To act as a personalised decision-making tool
To guarantee profits

2. Which element of the SMART framework applies to effective risk management?

Ambiguous
Aggressive
Specific
Spontaneous

3. How does a trading strategy affect your trade planning?

Your emotional state before trades
How you enter and exit trades
The type of news you follow
The amount of time you spend on trading

4. Which risk management tool helps limit losses automatically?

Limit order
Stop-loss order
Take-profit order
Trailing indicator

5. What is a key benefit of using the risk-reward ratio in trade planning?

It removes the need for stop-losses
It guarantees higher profits
It simplifies technical analysis
It helps assess if a trade is worth the risk

6. What factors affect choosing a trading style in your risk management plan?

Your friend’s recommendations
Your time availability and personality
Popularity of the strategy
Social media trends

7. Which trading style best suits a swing trading risk management approach?

Scalping
Day trading
Swing trading
High-frequency trading

8. What challenges does day trading present in risk and trade planning?

Not enough trading opportunities
It requires full-time attention and quick decisions
It doesn’t require any analysis
Trades are held for months

9. What is the difference between a trading plan and a trading diary in trade management?

They are the same thing
A plan outlines your strategy; a diary records your trades
A diary is for news articles
A plan is only for stop-losses

10. Why is discipline essential for effective trade planning and risk management?

It helps you guess market direction
It reduces your need for strategies
It helps you stick to your plan and avoid emotional decisions
It guarantees trade success

Trade Planning and Risk Management Quiz