Homework #12 HOMEWORK ALERT – Complete this Quiz before starting Class 13 Welcome to your NEW DTC #12 Scalping Name Email 1. When you're planning a scalp trade, where would you typically set your stop? Metnal 30 cent stop Mental 20 cent stop Mental 10 cent stop Mental 5 cent stop 2. For scalping a stock into a halt, where is an acceptable entry? Directly at the halt price Nearest half or whole dollar Within 5-10 cents of potential halt price Any of the above 3. When you scalp, where is a typical place to sell half and take your profits? 5 cents 8 cents 10 cents Any of the above, as soon as I begin to see resistance on the Level 2 or chart. 4. If you take a scalp trade and suddenly see a 30k share seller on the ask at 4.00, and you are long 5k shares at 3.89, what do you do? Sell immediately Try to sell with a hidden order under the ask at 3.99 or 3.98 Double for the breakout Adjust stop to breakeven 5. If you are buying a 1min micro pullback where is your entry? Typically the high of day, or break over minor resistance level High of day A break over the ½ or whole dollar just above or just below the first candle to make a new high. Any of the above 6. As a scalp trader, can you follow alerts from other trades? No, the trades are too fast to follow. Yes, you can follow other traders. Yes, but only if it's a Twitter Trader. Yes, especially if the stock is spiking up. 7. If you've seen a stock move up over 100%, we expect to see FOMO. How can you capitalize on it? Look for first stocks to show strength then jump in with tightest stop. Sympathy momentum on other low float stocks. Wait for a stock to squeeze up more than 10% All of the above. 8. Where is the best place to find scalp opportunities? Twitter Stocktwits Scanners Marketwatch 9. In a strong market we can get away with chasing stocks and taking aggressive entries at half dollars and whole dollars even if a stock is extended. Is this statement true or false? True False 10. Do scalp trades work well in a cold or slow market? Often times in a slow market scalp trades are the best we can do because we don't see sustained moves. No scalping doesn't work well in slow markets. 11. When is a stock no longer suitable for scalping? When the stock has shown mutliple false breakouts When the stock has a float of more than 50mil shares When the volume of a stock exceeds 10mil shares All of the above. 12. What is a fast way to enter a scalp trade on a parabolic stock? Enter as soon as it hits the scanner with a 10 cent mental stop. Enter on the first micro pullback Enter at the nearest half or whole dollar All of the Above 13. What is the greatest risk of a scalp trade? The losses will exceed the winners One big loss wipes out several winners All of the above 14. Are former runners better for scalp trading? Generally yes because other traders recognize the potential. No they aren't particularly valuable 15. Scalp trading requires what type of tools? Direct access routing Hot keys Stable trading platform None of the above.