Track C Exam — Swing & Position

This is the final exam for Track C — Swing & Position Trading (modules The Swing Framework through The Weekly Swing Routine). It tests whether you can actually run a swing book: aligning timeframes, sizing positions from the stop, surviving gaps, pyramiding into winners without growing risk, using LEAPS and covered calls with open eyes, capping the risk of the whole book, and living the weekly routine.

There are 30 multiple-choice questions. Each has four options — A, B, C, and D — and exactly one best answer. Some questions ask you to compute; keep a pencil or a calculator beside you and show the position-sizing math the way the modules taught it: shares = dollars you may risk ÷ distance from entry to stop, always rounded down.

Take it closed-book first. That is the honest measure of what you know.

The Questions

1. In the swing framework, what is the weekly chart's job?

A. It sets the direction — the trend you are allowed to trade with
B. It times your exact entry price
C. It replaces the daily chart entirely
D. It tells you which stocks will report earnings

2. Which of these is a pullback entry, as The Swing Framework defines the two entry families?

A. Buying the first day a stock makes a new all-time high
B. Buying a dip into proven support while the higher-timeframe trend is still up
C. Buying any stock that fell 10% this week
D. Buying at the open on a gap up

3. Your account is $25,000 and you risk 1% per swing. A stock's entry is $80 and its stop sits below structure at $74. How many shares do you buy?

A. 31 shares
B. 41 shares
C. 50 shares
D. 312 shares

4. On that same position — 41 shares, entry $80, stop $74 — what is your planned loss if the stop fills cleanly at $74?

A. $250
B. $240
C. $246
D. $492

5. A swing stop must sit below structure, so it is wider than a day-trade stop. At the same dollar risk, a wider stop means:

A. A smaller position
B. A larger position
C. The same position — stop distance does not affect size
D. You should skip the stop and use a mental one instead

6. Your 41 shares were bought at $80 with a stop at $74. The stock closes at $78, then opens the next morning at $68 after a bad earnings report. Roughly what do you actually lose, and why?

A. $246 — the stop guarantees a fill at $74
B. $0 — stops cancel all overnight losses
C. $410 — the difference between the close and the open, times ten
D. About $492 — the stop became a market order at the open and filled near $68, the first price that actually existed

7. What is the core philosophy of position trading and trend following?

A. Win as often as possible, even if the wins are small
B. Cut losers fast and let winners run — most returns come from a few big trends
C. Never hold a position longer than one week
D. Average down until the position turns profitable

8. A trend follower wins 40% of trades. Her average win is +$900 and her average loss is −$300. What is her expectancy per trade?

A. +$600
B. −$180
C. +$180
D. +$90

9. Same trader, same 40% win rate — but now she cuts winners early at +$300 and holds losers to −$900. What is her expectancy per trade now?

A. −$420
B. +$120
C. −$120
D. $0 — the win rate did not change, so neither did the result

10. Pyramiding means adding to a position. Under the Position Trading & Trend Following rules, when may you add?

A. Whenever the price drops and the average cost improves
B. On a schedule — the same amount every Friday
C. Only before the first entry fills, to get a better price
D. Only to a position that is already winning and proving the idea right

11. Which pair of rules governs every pyramid add?

A. Each add is bigger than the last, and total risk may grow as confidence grows
B. Each add is smaller than the one before, and total risk never grows beyond the original plan
C. Adds happen only on red days, at any size
D. Adds are unlimited as long as the trend looks intact

12. Why does a trend follower refuse to use a fixed, small profit target?

A. Brokers charge extra for target orders
B. Small targets are only for futures traders
C. It amputates the few big winners — and those winners are what pay for all the losers
D. Targets are illegal in position trading

13. What is a LEAPS option?

A. A long-dated option, typically expiring about 6 to 24 months out
B. An option that expires the same day it is bought
C. A type of stock dividend
D. A futures contract on the S&P 500

14. Used as a stock replacement, a LEAPS call is usually bought with a delta in which range?

A. 0.05–0.15
B. 0.20–0.40
C. Exactly 0.50, always
D. Around 0.70–0.90

15. A LEAPS call's premium is quoted at $38.00. What does one contract cost?

A. $38
B. $3,800
C. $380
D. $38,000

16. You hold that LEAPS call at 0.80 delta. The stock rises $10. Roughly how much does one contract gain?

A. About $80
B. About $8
C. About $800
D. Exactly $1,000, guaranteed

17. Which statement about LEAPS risk is TRUE?

A. A LEAPS can still expire worthless — if the stock finishes below the strike at expiration, the full premium is gone, while a stockholder still owns shares worth something
B. LEAPS cannot lose money because they have so much time left
C. LEAPS have no time decay at all
D. A LEAPS is safer than owning the stock in every scenario

18. You buy a vertical debit spread for a swing and pay a $1.80 debit. What is the most you can lose on the spread?

A. Unlimited — all spreads have unlimited risk
B. $1,000 per spread
C. The width of the spread, no matter what you paid
D. The debit paid — $180 per spread

19. You own 100 shares bought at $60. You sell one covered call, strike $65, for a $2.00 premium ($200 received). At expiration the stock is $72 and your shares are called away at $65. What is your total result on the whole play?

A. +$1,200 — the full rise from $60 to $72
B. +$700 — $500 from the shares plus the $200 premium
C. +$200 — only the premium counts
D. −$500 — being called away is always a loss

20. "Total open risk" for a book of swings means:

A. The total dollars you have spent on stock
B. Your margin balance
C. The sum of every open position's dollars-at-stop — and the whole book's total is capped (the module's guideline example caps it at 5% of the account)
D. The number of positions you hold

21. On a $50,000 account with a 5% whole-book cap, how much total stop risk may the book carry — and what does that mean for five positions each risking 1%?

A. $2,500 — five 1% positions exactly fill the cap, so a sixth full-size position breaks the book's design
B. $5,000 — ten 1% positions are fine
C. $500 — only one position is ever allowed
D. There is no dollar figure; caps are counted in positions, not dollars

22. You hold five technology swings, each risking 1% of your account. How does Managing a Book of Swings say to think about them?

A. As five independent bets that cannot fall together
B. As a balanced, diversified book
C. As risk-free, because each one is "only 1%"
D. As effectively one giant 5% bet on technology — correlated positions fall together

23. In the Managing a Book of Swings example caps for a $50,000 account, what is the cap for any one sector?

A. 5% — $2,500
B. 2.5% — $1,250
C. 10% — $5,000
D. No sector cap is needed if the whole-book cap is respected

24. What does the earnings calendar audit require you to do?

A. Buy more shares right before every earnings report
B. Ignore earnings dates — swings are long-term, so reports do not matter
C. List every holding's next earnings date and decide hold, reduce, or exit before the print — never discover the date from the headline
D. Sell every position the week earnings season starts

25. When may you add a brand-new swing position to the book?

A. Only when the total open risk after adding it still fits inside the book's cap
B. Any time a setup looks good — caps apply only at the start of the month
C. Whenever you have spare cash, regardless of open risk
D. Only on Mondays

26. The weekend session lasts about 60–90 minutes. Which of these is NOT part of it?

A. Checking the market regime on the weekly charts
B. Reviewing every open position against its plan
C. Building the watchlist with entry, stop, and target pre-written for each candidate
D. Staring at intraday charts hunting for an entry to take right now

27. How much weekday maintenance does the swing routine call for, and why does it work?

A. All day at the screen — swing traders must watch every tick
B. About 10–15 minutes in the evening — alerts and working orders do the watching, which is the lifestyle edge of swinging
C. None at all — a swing book needs no attention between weekends
D. Four hours every morning before the open

28. What is alert discipline, as The Weekly Swing Routine teaches it?

A. An alert on every 1% wiggle, so you never miss anything
B. No alerts — checking the app hourly is enough
C. Price alerts set at your plan levels — entry zones, stops, targets — so the market comes to you
D. Alerts only for stocks you do not own yet

29. What belongs in the Friday close-out review?

A. The week's positions opened and closed, their R multiples, and every rule break — journaled
B. Only the winning trades; losers are best forgotten
C. A prediction for next week's market direction
D. Nothing — the weekend session covers everything

30. During the trading week, a position acts in a way your plan never covered and you want to rewrite the plan on the spot. What does the weekly routine say?

A. Rewrite it immediately — plans are made to be broken
B. Plans and watchlist rules change at the weekend session, when you are calm and the market is closed — never on a midweek impulse
C. Ask the chat room what to do
D. Double the position so the decision matters less

Finished? Score yourself with the Track C Exam — Answer Key. 24 of 30 (80%) is a pass. Every missed question names its module — re-study that module, then retake the exam until the score is honest.