Day Trading, Finance And Accounting

Question: How effective is fundamental analysis in day trading?
A
It guarantees profit and success.

B
It identifies short sale opportunities only.

C
Not as effective as it is thought to be; it can at best be used for identifying long term pricing.

D
It is never effective and is a waste of time.

Note: answer not sure
1. Report
Question: Why is short selling risky?
A
Because if the price of the security rises endlessly, there is no limit on the losses that can be incurred

B
Because the brokers can mandate the seller cover their position at any point

C
Because there are no laws protecting short sellers

D
Because inexperienced short sellers can create havoc in the market

Note: answer not sure
1. Report
Question: What is meant by days to cover?
A
The number of days available for trading in the month

B
The number of days until a locate must be found

C
The number of days until a transaction clears

D
The maximum number of days available to the trader to cover their short position

Note: answer not sure
1. Report
Question: Why should an investor have predetermined exit points?
A
To maintain their trading goals and profit margins

B
Because they are required to by law

C
To make sure they stay classified as a day trader

D
Because it allows for low taxes

Note: answer not sure
1. Report
Question: How does a day trader immediately set their exit point?
A
By telling their friends to watch the stock for them

B
By placing a limit order to sell after purchase

C
By selling options contracts

D
By trying to arbitrage the stock

Note: answer not sure
1. Report
Question: What is "FOREX"?
A
Over the Counter Bulletin Board

B
A stock exchange

C
An options exchange

D
A foreign currency exchange

Note: answer not sure
1. Report
Question: Why is short selling looked on negatively by some traders?
A
Because short sellers make larger profits

B
Because short sellers introduce volatility to the market

C
Because short sellers profit on the misfortune of others

D
Because short sellers are too cavalier

Note: answer not sure
1. Report
Question: What is a margin account most resemble outside of the stock trading world?
A
Borrowing money from friends

B
A bank loan with collateral

C
An unsecured credit card

D
Selling bonds

Note: Answer not sure
1. Report
Question: What is "news trading?"
A
Buying and selling stocks based on recently released news information

B
Buying stocks in newspaper companies

C
The buying and selling of news stories

D
Giving other traders false information

Note: Answer not sure
1. Report
Question: What is a "locate"?
A
A person who locates hot stock tips

B
A person who locates potential short sale deals

C
A person who will provide the securities being sold temporarily, typically a brokerage

D
A person who locates short sales which are out of compliance

Note: Answer not sure
1. Report

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Question: How effective is fundamental analysis in day trading?

Question: Why is short selling risky?

Question: What is meant by days to cover?

Question: Why should an investor have predetermined exit points?

Question: How does a day trader immediately set their exit point?

Question: What is "FOREX"?

Question: Why is short selling looked on negatively by some traders?

Question: What is a margin account most resemble outside of the stock trading world?

Question: What is "news trading?"

Question: What is a "locate"?