Homework #8 HOMEWORK ALERT – Complete your homework before starting Class 9 Welcome to your ACTIVE - Day Trading Quiz: Chapter 8 Name Email 1. Where do you set your stop on a Parabolic Setup Hard 20 cent stop Low of the last pullback Low of the last 5min candle Whichever is the tightest stop of the above options2. If a stock is halted and reopens lower, what price would you consider an entry? Over the high price before the halt Over a half dollar Over a whole dollar All of the above3. If you buy 1k shares at 6.50 and 1k shares at 7.00, then sell ½ your position at 7.25, then add back 1k shares at 7.75, and the current price is 7.75, what is your cost basis, your realized profit, and your unrealized profit? $500 realized profit, 7.25 cost basis, unrealized profit is $1000 $500 realized profit, 7.00 cost basis, unrealized profit is $500 $1000 realized profit, 7.25 cost basis, unrealized profit is $500 $1000 realized profit, 7.00 cost basis, unrealized profit is $7504. If you see a 100k share seller on the ask at 6.00, and you are long 5k shares at 5.95, what do you do? Sell breakeven immediately Wait to see if the big seller moves Double for the breakout Adjust stop to breakeven5. If you are buying a Momentum Bull Flag where is your entry? The first 1min candle to make a new high after 2-3 red candles The first 5min candle to make a new high after 2-3 red candles A break over the ½ or whole dollar just above or just below the first candle to make a new high. All of the Above6. Is it safe to blindly follow alerts from other traders via Twitter, Chat Rooms, Email Newsletters? Yes, social media is a good source of reliable information. No, never follow somebody else because you will always be buying behind them and get a worse price. Yes, it’s okay to follow traders who are better than you because they know what they’re doing. Yes, especially if the stock is spiking up. ACTIVE - Chapter 8 - Parabolic Movers: Homework #8 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. Name Email 1. What are you going to do to prepare yourself for the next stock that moves 50-100%? How will you trade it? What setups will you utilize? How will you find the stocks?