Risk and loss management: quiz

6 questions. Score 70% or more to pass. Not ready? Study the course first.

After a 40% drawdown, what gain restores the original balance? 40% 50% 66.7% 80%

A trader's account falls from $10,000 to $4,000, a 60% drawdown. What percentage gain is now required to return to $10,000? 60% 100% 150% 250%

Why do experienced Solana traders treat a trailing stop as a drawdown-control tool rather than just an exit signal? It guarantees the maximum possible profit on every trade It locks in gains as price moves favorably, limiting how much of an open profit can be given back It eliminates the need for a fixed stop-loss entirely It removes the trader's need to monitor position size

Which piece of information is LEAST useful to record in a trading journal for spotting recurring mistakes? Entry and exit reasoning The exact time zone your exchange server is located in Position size relative to account balance Emotional state before and after the trade

After three months of logging trades, a trader notices every losing trade in their journal happened after skipping their pre-trade checklist. What is this an example of? A random coincidence that should be ignored A pattern surfaced by consistent journaling that reveals a controllable behavioral risk Proof that the checklist itself causes losses Evidence that journaling has no practical value

A trader's peak balance was $8,000, and it later drops to $5,600 before recovering. What was the maximum drawdown during that period? 20% 30% 40% 70%