1. 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
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  2. 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
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  3. 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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  4. 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
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  5. 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
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  6. 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
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  7. 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
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  8. 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
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  9. 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
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  10. 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
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