1. Question: When a stock has a breakout, what has happened?

    A
    The stock has taken off quickly and its popularity grown like a virus breakout.

    B
    The price has moved outside of the normal trading range either on the higher or on the lower end.

    C
    The price has declined so quickly that the company is forced to close its doors.

    D
    The volume has tripled.

    Note: answer not sure
    1. Report
  2. Question: What is the idea behind fundamental analysis?

    A
    Extensive mathematics will find winning stocks.

    B
    Fraud can be spotted.

    C
    The fundamentals of a company help dictate what the share price should be.

    D
    Opportunities for arbitrage trading can be found.

    Note: answer not sure
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  3. Question: How are day traders able to quickly analyze information in order to make decisions?

    A
    They are math geniuses.

    B
    They hire a team of people to analyze the data ongoing.

    C
    They just make random guesses.

    D
    Complex software is available to conduct analysis and give alerts based on the traders' criteria.

    Note: answer not sure
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  4. Question: What is "margin trading?"

    A
    Trading only in stocks with high potential for return

    B
    Using money borrowed from the brokerages to conduct stock transactions

    C
    Trading stocks of companies who have high gross margins

    D
    Selling stocks without owning them

    Note: answer not sure
    1. Report
  5. Question: When is stock analysis performed?

    A
    After the trading day to plan for the following day

    B
    A week in advance

    C
    Over several months

    D
    Always on the fly

    Note: answer not sure
    1. Report
  6. Question: What is "fundamental analysis"?

    A
    Stock analysis based on price and volume

    B
    Stock analysis based on the fundamentals of a company such as financial reports

    C
    Stock analysis based on a normal trading band

    D
    Stock analysis based on the previous day's trading mistakes

    Note: answer not sure
    1. Report
  7. Question: How is 'days to cover' calculated?

    A
    Always ten days as a rule

    B
    Number of shares outstanding / Daily share volume

    C
    Number of shares less shares held by execs / Daily share volume

    D
    Depends on the stock market; the formula varies from market to market

    Note: answer not sure
    1. Report
  8. Question: What would be the best technique for a day trader to utilize?

    A
    Fundamental analysis

    B
    Technical analysis

    C
    Multiple techniques

    D
    Charting

    Note: answer not sure
    1. Report
  9. Question: What does the $25,000 margin account requirement do to protect a day trader?

    A
    It guarantees they will always have $25,000 money available if they decide to quit day trading.

    B
    Little — the requirement is more to protect the brokerage.

    C
    It is a reserve they can use for trading at some later date.

    D
    It buys insurance from the NASD.

    Note: answer not sure
    1. Report
  10. Question: What is a simple technique a beginning day trader would use?

    A
    Options contracts trading

    B
    Fundamental analysis

    C
    Regression analysis

    D
    News trading — using news releases about companies as indicators of stock prices

    Note: answer not sure
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