Level 7 Assessment: Trading Psychology

You have completed all five lessons of Level 7, covering the emotional cycle of trading, cognitive biases, building discipline, handling losses, and the professional mindset.

This assessment tests your ability to apply these psychological concepts in realistic trading scenarios. Unlike earlier levels that focused on technical knowledge, this assessment is about judgment, recognizing emotional traps and choosing the disciplined response.

Assessment Format

You will face scenario-based questions that describe a trading situation and ask "What would you do?" Each scenario involves one or more of the psychological concepts covered in this level:

• Emotional cycle awareness
• Cognitive bias recognition
• Rules-based discipline
• Loss and drawdown management
• Professional decision-making

Score 80% or above to earn your Level 7 badge and 50 XP.

What You Have Learned

Level 7 covered the mental side of trading, the aspect that most traders ignore until it costs them real money. Here is a summary of what you now know:

• The four enemies (fear, greed, hope, regret) and how they map to the trade lifecycle
• Six cognitive biases (confirmation, loss aversion, recency, anchoring, overconfidence, gambler's fallacy) with specific counter-strategies for each
• Rules-based trading as the structural antidote to emotional decision-making
• Pre-commitment strategies (trading plans, checklists, automation) that remove decisions from emotional moments
• Trade journaling as a core discipline and improvement tool
• Process over outcome thinking: judging trades on rule adherence, not P&L
• Loss management: reframing losses as operating expenses, recognizing tilt, using circuit breakers
• Recovery protocols: reducing size, reviewing without revising, gradual ramp-up
• Probabilistic thinking: treating each trade as one data point in a large sample
• Trading as a business: defined hours, capital management, record keeping, continuous improvement

Next: Level 8, Putting It All Together

In Level 8, you will combine everything from Levels 1-7 into a complete, actionable trading business plan. You will cover paper-to-live transition, trade review processes, tax considerations, and continuous improvement frameworks. Level 8 ends with the final capstone assessment and your certificate of completion.