Answers to Trader's Quiz
If you answered "False" to all four questions, Congratulations! You got a perfect score.
1. Day trading is easier in a bull market than in a bear market.
Correct trading is no different in a bull or bear market. If you have a
system that works in one, but not the other, you have a system that doesn't
work. This is the reason why so many so called "day traders" are
now sitting with huge losses.
2. Trading during the first half hour is very tricky and should be left to the floor traders.
Trading during the first half-hour is not tricky and often offers great
opportunities. Many "system" traders find trading during the
first half-hour tricky --especially after a gap opening-- because they use
trailing indicators such as Stochastic or MACD. These indicators need time
bars to generate "signals" and the gap at the opening skews their
3. Only Liars buy at bottoms and sell at tops.
This comes under the old saying: "misery loves company." Just
because they can't pick tops and bottoms, they claim nobody can.
4. The big S&P is too difficult for an individual to trade and should be left to the professionals.
A properly trained individual should be able to trade any market. Many of
the individuals that I have taught have results that many so called
"professionals" would envy.
Regardless of what your score was, I think that you will agree that an educated trader is likely to be a successful trader. Scroll through my web site and see for yourself how an education like this, will put you on the path to success.