Day Trading
 

  1. Question: What is meant by "swing trading"?

    A
    Trading 10 or more times in one day

    B
    Trading stocks with your friends

    C
    Holding stocks for more than a day, but typically not more than a few weeks

    D
    Trading stocks as a hobby

    Note: Answer not sure
    1. Report

  2. Question: What is the concept of ignoring predetermined exit points to allow for further profit?

    A
    Short selling

    B
    Selling options contracts

    C
    Letting a stock run

    D
    Margin trading

    Note: Answer not sure
    1. Report

  3. Question: What is meant by a margin call?

    A
    When a brokerage asks the investor to put money up front before extending the margin

    B
    When a brokerage requires a stock trader to pay for loans the brokerage has made to the trader

    C
    When an investor executes a call option

    D
    When an investor executes a short sale

    Note: Answer not sure
    1. Report

  4. Question: What is the assumption of a trader who cannot produce the $25,000 margin?

    A
    They are using their money for trading risky stocks.

    B
    They would rather buy homes.

    C
    They have their money tied up in bonds instead of stocks.

    D
    They are less wealthy, less sophisticated, and cannot sustain a sizeable loss.

    Note: Answer not sure
    1. Report

  5. Question: What is the SEC definition of a "pattern day trader"?

    A
    A trader who profits from short selling

    B
    A trader who buys and sells on the same trading day, and does this four or more times within a 5 day period

    C
    A trader who sells and buys stock options instead of stocks

    D
    A trader who makes profits; the ones who lose money are not day traders

    Note: Answer not sure
    1. Report

  6. Question: What is the end result of most technical analyses?

    A
    Short selling stocks

    B
    A chart indicating price movements and a prediction for future price movements

    C
    Calling companies for more information about their stock price

    D
    Nothing; it usually results in useless information.

    Note: Answer not sure
    1. Report

  7. Question: What is meant by "arbitrage"?

    A
    Selling a stock without owning it

    B
    Profiting on price differences between the markets

    C
    Selling stock options

    D
    Illegally selling stocks

    Note: Answer not sure
    1. Report

  8. Question: What is the usual way traders will leverage their trading capital?

    A
    Borrowing money from friends and family

    B
    Taking out a bank loan

    C
    Trading on margin, borrowed money

    D
    Mortgaging their homes

    Note: Answer not sure
    1. Report

  9. Question: What would be an entry point for a range trader who is going long?

    A
    The high point in a price band

    B
    A price in the middle of a price range band

    C
    A price near or at the typically lower end of the range for a security

    D
    When the stock of an appliance manufacturer hits a new low

    Note: Answer not sure
    1. Report

  10. Question: What is the fundamental idea behind arbitrage trading?

    A
    That profit can be made on the pricing differences between two markets on the same security

    B
    That profit can be made based on information leaked by an insider

    C
    That profit can be made by short selling stocks

    D
    That profit can be made by artificially promoting a stock

    Note: Answer not sure
    1. Report
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