Stock Trader Genius Basic Quiz 3

What are the advantages of trend trading over cycle trading?

Trend trading allows for more consistent results over time.

Trend trading is easier to master than cycle trading because it’s less dependent on perfect timing.

It’s easy to spot profitable trends in hindsight, but it's impossible to recognize strong trends as they're forming.

The fewer shares I hold of a company's stock, the more dividends I will receive.

True or False: Trend trading is statistically easier to make money with than cycle trading.

True.

False.

Which behavioral tendencies and personal characteristics can affect your trend trading?

Our thrill-seeking nature makes human being vulnerable to greed and aggressive risk-taking.

Impatience will make me get in and out at less-than-ideal points in the trend.

Conditioning myself to have self-control, so we trade only within our system rather than let our emotions hijack us..

All of the above are correct.

What are the timing considerations for cycle/swing trading vs trend trading?

Swing trades generally last days/weeks, or maybe months, but not years; Trend trades can be of any duration.

Swing trading for income depends on precise timing of your buying and selling to be at or near the high and low price swings, while Trend trading has the benefit of not needing to be the first to buy in.

Timing swing trades perfectly involves guessing, while trend trading allows me to see a stock price begin its run BEFORE I buy shares.

All of the above are correct.

What is day trading stocks?

Buying and selling in the same day.

Buying and selling in the same week.

Buying and selling in the same month.

Buying shares of volatile companies when they swing to new lows, then selling at the next high irrespective of performance data.

True or False: Sticking to a proven trading system is statistically more profitable than trading emotionally.

True.

False.

What is an example of an easy way to drain your trading account?

Trading with a tested and proven system.

Minimizing losses.

Hoping that a losing trade will turn around.

Practicing your strategy in a replay simulator.

When using a tested and proven trading system, the rules are _______?

Negotiable.

Non-negotiable.

There as a rough guideline.

Not as good as my gut feelings at telling when my investments are wise.

STG Basic Quiz 3

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