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Question 1

The best traders lose what percent of the time.

Answer 1

20 to 30 percent of their trades

Question 2

What is a trading plan and why is it important

Answer 2

Rules that guide trading.

Question 3

When should I break a rule that I have set for trading.

Answer 3

Never.

Question 4

Day trading definition

Answer 4

Buying shares of a stock with the intent to sell on the same day.

Question 5

Swing trading definition

Answer 5

Buying shares of stock on one day and selling on a different day .

Question 6

What are stock market hours.

Answer 6

9.30 TO 4 PM.

Question 7

Is premarket trading recommended

Answer 7

No because there are very little buyers or sellers around.

Question 8

Describe the text boxes of the order entry window or level 2 window.

Answer 8

Symbol, account window,shares, exnchange ,order type box, buy,sell,short buttons,level 1 quote, ETB( easy to borrow)

Question 9

Where do I place my buy / sell orders ( what screen in the day trading software)

Answer 9

Order entry window.

Question 10

What does (day) and (stop) refer to in level 2 window.

Answer 10

Day means that the order will be cancelled if it is not complete by the end of the trading day.

Question 11

What is level one information

Answer 11

The basic bid ,ask prices,market maker on the Oder entry screen. Everything below this is considered the level two information.

Question 12

What are the normal hours of the stock market.

Answer 12

9:30 to 4 pm est

Question 13

What are the premarket hours Of the stock market.

Answer 13

4am to 9:30 am

Question 14

What are the after hours of the stock market

Answer 14

4 pm to 8 pm

Question 15

What is float

Answer 15

The shares that are available for trade.(freely tradable shares). Note that there are shares that are not available for trade to the public as well.

Question 16

As a day trader do we look for low or high float stocks.

Answer 16

Low float (. 10 million shares or less)

Question 17

What is a limit order vs excecution price.

Answer 17

The limit price is the price we set as the most we are willing to buy or sell at. Execution price is the price that the order is filled / completed at.

Question 18

Why would an order have a partial fill /3 reasons

Answer 18

1.i didn’t use a market order. 2, the market moved too quickly 3. My limit order was perhaps too high.

Question 19

What happens if I forget to cancel an open order.

Answer 19

Your order will fill if the price comes to the order price.

Question 20

What broker did Ross recommend

Answer 20

Light speed. He used two order windows on screen.

Question 21

T or f . The bid is the highest price someone is willing to pay.

Answer 21

True

Question 22

What does the order window tell us.

Answer 22

Information about my orders only.

Question 23

What is a fundamental analysis of a stock.

Answer 23

A method of determining a securities intrinsic value.contrast with technical analysis.

Question 24

Who uses fundamental analysis

Answer 24

Mostly long term investors

Question 25

What is a 10 Q report.

Answer 25

Quarterly earnings statement

Question 26

What time frame do most day traders use to find entry points

Answer 26

The one and five minute charts

Question 27

Look at a stock chart on google or somewhere else and change the timeframes

Answer 27

Do it

Question 28

In which direction do we read charts.

Answer 28

From right to left.

Question 29

What creates a gap on a daily chart.

Answer 29

1.a large candle/ 2. A candle that loses much higher or lower than the previous day/3. A candle that closes much higher or lower than the previous day.

Question 30

What causes a stock to open higher or lower than it did the previous day.

Answer 30

1. News of some type / 2. Overall strength or weakness in the market / 3.an imbalance between buyers and sellers.

Question 31

How large does a gap or window have to be to be considered worth watching

Answer 31

At least 2 x the daily range.

Question 32

What does otcmkt mean.

Answer 32

Means that a stock is a penny stock.

Question 33

What is the bid price.

Answer 33

The highest price that someone is willing to

Question 34

Green candles mean what.

Answer 34

Price went up during that period.

Question 35

A red candlestick means what

Answer 35

That the price went down during the period.

Question 36

What information can I get from each candle.

Answer 36

Open, close, high,low.

Question 37

What are the five types of candles.

Answer 37

Hammer / inverted hammer/ Doji/long bod y / bullish engulfing candle/bearish engulfing vcandle.

Question 38

What is technical analysis

Answer 38

A tool used to predict the future price movements of a security.

Question 39

Which do I use to day trade with, technical analysis or fundamental analysis?

Answer 39

Technical analysis.

Question 40

1. what type of pattern is a triangle?( continuation /reversal/both)
2. what pattern are they similar to?
3. explain what is happening when a triangle is forming?

Answer 40

1. both types.
2. to rectangles( but the support and resistance lines that contain the price can be trend lines.)
3. buyers are trying to push price up/ sellers are trying to pull it down.as time goes on both become more cautious and the movements in either direction become smaller and smaller until one side wins.

Question 41

what are the three types of triangles?

Answer 41

1.ascending triangle/decending triangle/symmetrical triangle.

Question 42

describe an ascending triangles?

Answer 42

it has a resistance line at the top that is horizontal and the support line is an uptrend line

Question 43

describe an descending triangle?

Answer 43

opposite of a ascending triangle(

Question 44

describe an symmetrical triangle?

Answer 44

both support and resistance are trend lines.

Question 45

when a breakout occurs on an ( ascending triangle) what direction will price move?

Answer 45

price will move upside.

Question 46

when a breakout occurs on an ( descending triangle) what direction will price move?

Answer 46

descending triangles are more likely to breakout to the downside.

Question 47

what direction does a symmetrical triangle breakout in ?

Answer 47

symmetrical triangles are more likely to breakout in the direction of the original.

Question 48

1. where should a breakout occur for it to be valid (for a triangle pattern).
2. If the breakout occurs before that point, what should I do?
3. when price breaks out how far will it travel.

Answer 48

1. 3/4 th of the way down the triangle.
2. if it breaks out before the 3/4th point, it isn’t in a triangle pattern any more.
3. The price will travel the distance of the widest point of the triangle

Question 49

when do I trade a triangle pattern?

Answer 49

when a candle breaks out 3/4th the way down the pattern.