HOMEWORK ALERT – Complete your homework before starting Class 4

Chapter 3 - Stock Selection: Homework #3

Completing your homework is for your own benefit.  Answers should be in Paragraph form.  If you want to succeed as a trader, you have to show motivation & discipline.

NameEmail
1. What is the “right” type of stock to trade?
2. What price range is desirable for account growth?
3. What price range is desirable for conservative trading?
4. What causes stocks to be extreme?
5. What is your process for creating a watch list each day? (how will you find stocks, find news, identify potential entries, etc)
6. What is an example of a type of news that we wouldn’t trade.  Also give example of news we’d consider highly desirable.
7. Instead of having you email me charts, I want you to review this chart for me.  Would this chart below be considered a good pre-market chart or a bad pre-market chart?



 
8. Instead of having you email me charts, I want you to review this chart for me.  Is this chart below a good pre-market chart or a bad pre-market chart?





 


Welcome to your ACTIVE - DTC: #3 Quiz

NameEmail
1. How many technical characteristics must a stock have to be worth trading for Momentum or Gap and Go Strategies?
2. Trader A says that by trading stocks with high relative volume we ensure that thousands of other day traders are also trading these same stocks.  Trader B says that High Relative Volume is not the result of a News Catalyst, but always the result of a technical breakout.  Who is correct?
3. Trader A says that trading low volume stocks is asking for trouble.  Trader B says that low volume stocks are more likely to be manipulated by a small number of traders or HFT traders.  Who is correct?
4. A follow through day is considered:
5. What is a Stock Buyback?
6. Which best describes an activist investor?