Cognitive Classification Guide

This document serves as the complete instruction set for classifying trading education questions based on the cognitive processes required to answer them.

Executive Summary

This guide provides a systematic approach to classify trading education questions by analyzing the cognitive processes required to answer them. Each question receives:

Core Skill Domain

One mandatory primary cognitive skill that represents the main mental operation

Supportive Skills

Zero to two supportive skills that meet strict prerequisite criteria

Golden Rules of Classification

Assign One Core Skill

Output exactly ONE core cognitive skill domain that represents the primary mental operation

Assign Supportive Skills

Output supportive skills only if they meet ALL strict prerequisite criteria (maximum two)

Prioritize Cognitive Process

Base classification on the mental task required, not trading phase or market context

Meta-Instructions for Processing

These instructions guide how to interpret and apply the rules within this document to achieve accurate classification.

Core Processing Principles

Follow Logic Flow

Adhere strictly to the Master Classification Logic Flow step-by-step

Prioritize Rules

Rules and definitions take precedence over examples

Apply Definitions

Base classification on cognitive operations in detailed definitions

Maintain Objectivity

Apply rules based on objective textual evidence

Always analyze the entire input question before starting the classification process. Context from the full question is crucial.

Master Classification Logic Flow

Follow these steps sequentially for every input question:

Input Question Analysis

Read and parse the entire input question text
Identify key verbs, concepts, and specific tasks
Note potentially relevant Cognitive Skill Domains

Mandatory Metacognitive Override Check

Apply the Metacognitive Override Test. If criteria met:

Assign appropriate METACOGNITIVE Skill as Core
Proceed directly to identifying Supportive Skills

Determine Primary Cognitive Category

For non-metacognitive questions, analyze the primary output:

Understanding/interpreting → PERCEPTION & ANALYSIS
Making a choice/plan → DECISION-MAKING
Implementing/adjusting → EXECUTION & ADAPTATION

Determine Specific Core Skill Domain

Within the identified category, pinpoint the single most fitting Core Skill using definitions and decision trees

Resolve Ambiguity

If ambiguity exists, apply specific pairwise tie-breaker rules

Identify Supportive Skills

Evaluate other domains using the Strict Supportive Skill Checklist

Final Formatting and Output

Assemble classification using the required output format

Core Classification Principles

The One Core Cognitive Process Rule

Every input question requires exactly one Core Skill Domain representing the primary cognitive operation

Supportive Skill Rules & Strict Checklist

A domain qualifies as Supportive ONLY IF ALL THREE criteria are met:

Cognitive Dependency Test

Does the Core Skill logically require this skill's output as input for this specific question?

Critical Threshold Test

Is this skill actively and centrally engaged, not just tangentially related?

Removal Test

Would removing this process make the Core Skill impossible or fundamentally different?

Assign maximum TWO Supportive Skills. If more qualify, select the most direct prerequisites.

Cognitive Categories & Skill Domains

PERCEPTION & ANALYSIS SKILLS

How traders observe, interpret, and analyze market information

Skill Domain	Description	Key Indicators
Pattern Recognition	Identifying pre-defined, named formations in market data	pattern, formation, candlestick, chart pattern names
Data Interpretation	Extracting meaning from market data points and analytical flows	interpret, meaning, implication, suggest, indicate
Contextual Integration	Synthesizing multiple, potentially conflicting data sources	synthesize, integrate, reconcile, multi-timeframe
Signal Filtering	Distinguishing valid signals from noise	valid, confirm, false signal, filter, validate
Quantitative Analysis	Applying statistical/mathematical methods beyond basic arithmetic	statistical test, probability, model, regression

DECISION-MAKING SKILLS

How traders evaluate options and choose appropriate actions before execution

Skill Domain	Description	Key Indicators
Strategic Assessment	Evaluating and selecting trading approaches or strategies	strategy selection, approach, evaluate strategy
Trade Structuring	Defining specific parameters of a potential trade	trade setup, entry criteria, exit criteria, targets
Risk-Reward Calibration	Determining position size and risk levels	position size, risk management, R:R ratio, stop loss
Execution Planning	Deciding how trades will be implemented	order type, entry tactic, limit vs market order
Contingency Planning	Preparing responses for potential future scenarios	contingency, if-then plan, what if, scenario

EXECUTION & ADAPTATION SKILLS

How traders implement decisions and adjust to changing conditions

Skill Domain	Description	Key Indicators
Mechanical Execution	Implementing planned trading actions during entry	place order, enter trade, execute entry, fill
Position Management	Adjusting active trades as they evolve	manage position, adjust stop, trail stop, exit
Market Adaptation	Responding to actual, unfolding market changes	adapt to, react to, market change, volatility spike
Error Correction	Managing mistakes or unintended outcomes	error, mistake, correct, fix, wrong size
Operational Optimization	Enhancing trading efficiency and reducing costs	commission, slippage, optimize cost, platform

METACOGNITIVE SKILLS

How traders understand, reflect upon, and regulate their own thinking processes

Skill Domain	Description	Key Indicators
Emotional Regulation	Managing feelings that influence trading	fear, greed, anxiety, stress, discipline, patience
Cognitive Bias Management	Identifying and counteracting thinking errors	bias, confirmation, recency, hindsight, anchoring
Attention Management	Directing and maintaining mental focus	focus, concentration, distraction, prioritize
Performance Evaluation	Assessing past trading processes and outcomes	review, analyze performance, journal review
Knowledge Integration	Incorporating lessons into future behavior	learn from, integrate lesson, improve, adapt approach

Metacognitive Override Logic

Mandatory Override Test

If ANY of these criteria are met, a Metacognitive domain MUST be assigned as Core Skill:

Explicit Mention as Primary Obstacle

Does the question explicitly state an emotion or bias as the main problem to be managed?

Direct Question about Self-Regulation

Does the question directly ask how to regulate emotions, thoughts, or attention?

Reflection on Past Decision Validity

Does the question require reflecting on or evaluating a past decision's validity?

Skill vs. Luck Assessment

Does the question explicitly ask to differentiate between skill and luck?

Process vs. Outcome Evaluation

Does the question focus on evaluating decision quality separate from outcome?

Decision Trees

Primary Category Selection

graph TD
    A[Input Question Analyzed] --> B{Primary Output/Action?}
    B -->|Understanding Market Info| C[PERCEPTION & ANALYSIS]
    B -->|Making Choice/Plan| D[DECISION-MAKING]
    B -->|Implementing/Adjusting| E[EXECUTION & ADAPTATION]

Decision tree for selecting the primary cognitive category

Key Distinctions & Tie-Breakers

Pattern vs. Interpretation

Named pattern → Pattern Recognition Data meaning → Data Interpretation

Planning vs. Execution

Pre-trade decision → Execution Planning During-trade action → Mechanical Execution

Contingency vs. Adaptation

Future hypothetical → Contingency Planning Current actual → Market Adaptation

Emotion vs. Bias

Managing feelings → Emotional Regulation Thinking errors → Cognitive Bias Management

Common Classification Scenarios

Cognitive Process Integration Matrix

This matrix shows common valid relationships when questions engage multiple domains

If Question Combines	And Primarily Asks For	Core Skill Is	Supportive Skills
Pattern ID + Trading Decision	The optimal trade decision	Trade Structuring	Pattern Recognition
Data + Signal Filtering	Identifying false signals	Signal Filtering	Data Interpretation
Multi-Source + Strategy	Synthesizing conflicting data	Contextual Integration	Strategic Assessment
Position Adjustment + Emotions	How to handle emotions	Emotional Regulation	Position Management
Past Decision + Bias Check	Evaluating decision validity	Cognitive Bias Mgmt	Original decision skill

Required Output Format

Your output MUST strictly adhere to one of these formats based on the number of Supportive Skills:

Format 1: Core Skill Only

CORE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [1-2 sentences explaining the core cognitive task]
SUPPORTIVE SKILLS: None required for this straightforward question.

Format 2: Core + One Supportive Skill

CORE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [1-2 sentences explaining the core cognitive task]
SUPPORTIVE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [Explanation addressing Dependency, Critical Threshold, and Removal Test]

Format 3: Core + Two Supportive Skills

CORE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [1-2 sentences explaining the core cognitive task]
SUPPORTIVE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [Explanation addressing all three criteria]
SUPPORTIVE SKILL: [COGNITIVE CATEGORY > Specific Skill Domain]
REASONING: [Explanation addressing all three criteria]

Use exact domain naming conventions and include ALL CAPS for labels (CORE SKILL, REASONING, SUPPORTIVE SKILL)

Example Classifications

Simple Pattern Recognition

Question: "What candlestick pattern formed on the GOOGL daily chart?"

CORE SKILL: PERCEPTION & ANALYSIS > Pattern Recognition
REASONING: The question explicitly asks to identify a specific, named candlestick pattern.
SUPPORTIVE SKILLS: None required for this straightforward identification task.

Risk Calibration with Analysis

Question: "Using backtest results (60% win rate), calculate expectancy and determine optimal position size for $100k account."

CORE SKILL: DECISION-MAKING > Risk-Reward Calibration
REASONING: Final task is determining optimal position size, a core risk calibration function.
SUPPORTIVE SKILL: PERCEPTION & ANALYSIS > Quantitative Analysis
REASONING: Calculating expectancy (Dependency) is required for sizing decision (Critical); removing calculation makes optimal sizing impossible (Removal).

Metacognitive Override Example

Question: "After three losing trades, you feel intense fear about the next valid setup. How should you manage this fear?"

CORE SKILL: METACOGNITIVE > Emotional Regulation
REASONING: Metacognitive Override triggered - "intense fear" explicitly stated as primary obstacle.
SUPPORTIVE SKILL: DECISION-MAKING > Trade Structuring
REASONING: Recognizing valid setup (Dependency) provides context for emotion (Critical); removing it makes fear management undefined (Removal).