Stock Trader Genius Basic Quiz 1

What does owning stock mean?

Owning stock means a guaranteed seat on the Board of Directors.

Owning stock means owning a piece of a company, which can be big or small.

Owning stock just means you buy a lot of products from that company.

Stocks are proof that you work for an employer.

How does the process of making profits in the stock market compare to earning interest on a savings account?

Savings accounts are for tall people, stocks are for short people.

One profits by leveraging fluctuations and disparities in stock values to make profits on stock trades over the long run, where a savings account simply yields interest.

There is no way to make profits in the stock market; savings accounts are the only way.

One has to have at least 1 million dollars to make profits in the stock market, but even 1 dollar is good enough to earn interest in a savings account.

What concept are you leveraging when you re-invest the profits you earn to make even more gains on your investments?

Annualized returns.

Compound growth.

Both the first and second choices are correct..

The mattress.

True or False?: The forces of Supply & Demand drive price action in the stock market.

True.

False.

What is the stock market?

Just another name for the place I go grocery shopping.

A marketplace where I can get connected to other traders, so that we can buy and sell shares of companies if we agree on a price.

The economy.

A place where avocados and other fresh produce may be purchased.

Which of the following is NOT an advantage of trading the stock market?

The stock market is very accessible to the average person.

It’s easy to understand how the stock market works, because we see real companies all around us and understand they have value.

Stock prices are simple to track from day to day.

The people on TV will tell me what stocks to buy and they are never wrong.

What are the disadvantages of trading other markets (e.g. cryptocurrencies, forex, futures, etc.)?

Alternative markets can be profitable, but can be risky because they are complicated and require more experience and knowledge to do well in.

There is a barrier to getting started in alternative markets because they have unique rules and customs.

Old people trade in the stock market; cool, young people trade alternative markets.

Both the first and second choices are disadvantages of trading other markets.

What forces influence the overall stock market?

Buyer & Seller Sentiment

Major Global Events

World Economic Forecasts

All of the above.

What is a benefit of trading WITH the overall market vs trading AGAINST it?

The ocean is like the stock market: they are both hard to control.

Wealthy companies and individuals can trade so much volume that they can move the entire market, so it’s lower risk to trade in the same direction.

With enough hope you can trade against the market and always make money.

The money supply is always growing when the overall market is bearish.

STG Basic Quiz 1

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