Trading Quiz

If you answer even one of the following questions, I will appreciate.

1. Which style of analysis is the best- chart patterns,indicators,astrofinance,tape reading from orderbook,market profile, elliott wave etc. ?
2. How many years does it take to learn to trade profitably?
3. Is trading as a career more risky than other form of business?
4. What is meant by 'embracing risk' ?
5. Should leverage be used at all? if yes, whats the maximum?
6. Is trading in Nifty Futures better than trading in stocks?
7. Which questions are answered by Money-Management?
8. Which style of trading (intraday/position etc.) is good for people who cannot stand stress?
9. Are there potentially zones of calmness at a market, which can be calculated?
10. Which two kinds of breakouts do you know yet?
11. What is diversification?
12. Are Manipulators or Big Speculators menace to trading? If yes, how do you keep away from them ?
13. Commissions and costs have become much cheaper over the years. Is that a supportive factor for day-traders?
14. Is the expected hit-ratio at a trendfollowing strategy above or below 50%?
15. How long are trades lasting, when you are “daytrading“?
16. Are markets more often in trends or in sideways movements?
17. Name at least one scenario that can be used to make money on a market!
18. Name the highest risk/reward strategy that you know?
19. Name the lowest risk/reward strategy that you know?
20. Are mechanic systems capable of reducing the stress of the trader?
21. Is it sufficient to evaluate a trading-strategy by only the net profits?
22. Do trendfollowers or contrarians usually have a better hit-ratio?
23. Is it making sense to trade more than one strategy on the same stock?
24. Is a horizontal line in the chart, indicating support and/or resistance, indicating a support and a resistance for sure and in reality?
25. Are there prices or price-regions that are more traded than others on subsequent days?
26. What is the 'momentum’ of a price-movement?
27. How many more contracts have to be bought than sold to call the market overbought?
28. How could you measure volatility?
29. Name one basic strategy of trendfollowing?
30. Which indicators may tell us whether the market is sideways or in trend?
31. How could we know before everybody whether demand or supply will be greater?
32. The market is rising with rising volume. Were more traders buying than selling? Or are more contracts been bought than sold? Or what?
33. what is the relation between volumes and price?
34. When is a stock unable to fall any further?
35. How does the movement of DOW/NIKKIE affects your stock ?
36. Should exits be more important than entries ? or are they equally important ?
37. Should we decide on the worst case or should we decide on the average case?
38. Among 100 people who start trading, how many will survive in the markets?

OK then.


Disclaimer:
1. If any of the BIG traders find the Qs stupid/repetitive, please be patient... the participation of non-trading members is sought as well.
2. I have no intention to play examiner/boss, just looking for fun.
3. I received the Qs in a fwd-email, they aren't designed by me.

I have answerd most questions. Waiting for marks (and prize).
Note: The answers are my opinion and I may be wrong.


2. Which style of trading (intraday/position etc.) is good for people who cannot stand stress?
A. Intraday.

4. Which two kinds of breakouts do you know yet?
A. 52 week high - 52 week low

5. What is diversification?
A. Buying/Selling different sector stocks.

6. Commissions and costs have become much cheaper over the years. Is that a supportive factor for day-traders?
A. Yes.

8. How long are trades lasting, when you are daytrading?
A. 3 Hours max.

9. Are markets more often in trends or in sideways movements?
A. Sideways.

10. Name at least one scenario that can be used to make money on a market!
A. For intrady it is Breakout on 15 min chart

13. Are mechanic systems capable of reducing the stress of the trader?
A. Yes.

14. Is it sufficient to evaluate a trading-strategy by only the net profits?
A. What else then? Any other criteria?

15. Do trendfollowers or contrarians usually have a better hit-ratio?
A. Trend followers.

16. Is it making sense to trade more than one strategy on the same stock?
A. Never earned much by this.

17. Is a horizontal line in the chart, indicating support and/or resistance, indicating a support and a resistance for sure and in reality?
A. 50-50

18. Are there prices or price-regions that are more traded than others on subsequent days?
A. Yes.

21. How could you measure volatility?
A. I rely on NSE website.

22. Name one basic strategy of trendfollowing?
A. Higher high / Lower low.

23. Which indicators may tell us whether the market is sideways or in trend?
A. Moving average.

24. How could we know before everybody whether demand or supply will be greater?
A. Order book.

25. The market is rising with rising volume. Were more traders buying than selling? Or are more contracts been bought than sold? Or what?
A. Derivatives are as the name suggests. They are dependent on cash market and cash market is not dependent on derivatives. So stock is being bought.

26. When is a stock unable to fall any further?
A. Lower volume lower price.

27. How does the movement of DOW/NIKKIE affects your stock ?
A. World has become global village. It affects every market sooner or a little bit later.

28. Should exits be more important than entries ? or are they equally important ?
A. Equally Important.

My answers are either in bold or after question,
Good trading to you
Naveen

1. Which style of analysis is the best- chart patterns,indicators,astrofinance,tape reading from orderbook,market profile, elliott wave etc. ?


2. How many years does it take to learn to trade profitably?

For whom? Depends.

3. Is trading as a career more risky than other form of business?

No.

4. What is meant by 'embracing risk' ?

Hug it.

5. Should leverage be used at all? if yes, whats the maximum?

Depends on you.

6. Is trading in Nifty Futures better than trading in stocks?

Depends on the factors that you assume for your trading

7. Which questions are answered by Money-Management?

How long you can go on before sinking.

8. Which style of trading (intraday/position etc.) is good for people who cannot stand stress?

Depends on what stress you are talking about.

9. Are there potentially zones of calmness at a market, which can be calculated?

No.

10. Which two kinds of breakouts do you know yet?

Take any level. When price moves out of it, you call it a breakout.

11. What is diversification?

Spread risk in negatively correltade units.

12. Are Manipulators or Big Speculators menace to trading? If yes, how do you keep away from them ?

NO

13. Commissions and costs have become much cheaper over the years. Is that a supportive factor for day-traders?

Yes, for all traders

14. Is the expected hit-ratio at a trendfollowing strategy above or below 50%?

Depends on your definition of trend, timeframe

15. How long are trades lasting, when you are daytrading?

1 min to 5 hours

16. Are markets more often in trends or in sideways movements?

Depends on your timeframe

17. Name at least one scenario that can be used to make money on a market!

Buy before it goes up, Sell before it goes down - too idealistic.

18. Name the highest risk/reward strategy that you know?

Buy and Hold for ever.

19. Name the lowest risk/reward strategy that you know?

buying options

20. Are mechanic systems capable of reducing the stress of the trader?

No.

21. Is it sufficient to evaluate a trading-strategy by only the net profits?

NO

22. Do trendfollowers or contrarians usually have a better hit-ratio?

Contrarians

23. Is it making sense to trade more than one strategy on the same stock?

Of course

24. Is a horizontal line in the chart, indicating support and/or resistance, indicating a support and a resistance for sure and in reality?

No

25. Are there prices or price-regions that are more traded than others on subsequent days?

Yes, but evident after trade is over

26. What is the 'momentum of a price-movement?

Google

27. How many more contracts have to be bought than sold to call the market overbought?

XXXX

28. How could you measure volatility?

Google

29. Name one basic strategy of trendfollowing?

Buy and Hold and hope

30. Which indicators may tell us whether the market is sideways or in trend?

One that follows price movement and retracements

31. How could we know before everybody whether demand or supply will be greater?

Level II book

32. The market is rising with rising volume. Were more traders buying than selling? Or are more contracts been bought than sold? Or what?

You can see it for yourself.

33. what is the relation between volumes and price?

Depends on the context

34. When is a stock unable to fall any further?

When it reaches 0.

35. How does the movement of DOW/NIKKIE affects your stock ?

Depends on who is active in the mkt.

36. Should exits be more important than entries ? or are they equally important ?

Entry, followed by exits

37. Should we decide on the worst case or should we decide on the average case?

Decide on the whole spectrum.

38. Among 100 people who start trading, how many will survive in the markets?

Depends on who the 100 people are. If they are all CVs, ALL of them will.

Having some knowledge i have answered if its wrong please accept and tell the right one.

1.Which style of trading (intraday/position etc.) is good for people who cannot stand stress?
Intraday

2.Commissions and costs have become much cheaper over the years. Is that a supportive factor for day-traders?
Absolutely Yes it may me one of the supportive factor for daytrader.

3.How long are trades lasting, when you are “daytrading“?
Half an hour to three hour.

4.Is trading as a career more risky than other form of business?
I think not at all if you know to trade well.

5.How many years does it take to learn to trade profitably?
Learning from mistakes matters.

6.Name one basic strategy of trendfollowing?
Buy and hold.

7.Do trendfollowers or contrarians usually have a better hit-ratio?
Trendfollowers.

8.Are mechanic systems capable of reducing the stress of the trader?
yes

9.How could you measure volatility?
just googling.

10.Should exits be more important than entries ? or are they equally important ?
I think exit is more important than entry or equally important.

The questions which remain unanswered create myths and misconceptions. Begginer_av have answered most with excellence. Dont want to spoil the flow of thread... so answering in your thread.

Answering in which thread?

vps

Which style of analysis is the best- chart patterns,indicators,astrofinance,tape reading from orderbook,market profile, elliott wave etc. ?
elliot +pivots+gann+volume+jsi
How many years does it take to learn to trade profitably? yrs
Is trading as a career more risky than other form of business? never
What is meant by 'embracing risk' ? to calculate and see the trends where none exists
Should leverage be used at all? if yes, whats the maximum? capital markets requires your own capital to be calm
Is trading in Nifty Futures better than trading in stocks? depends , you can use it to hedge positions
Which questions are answered by Money-Management? position size and return time
Which style of trading (intraday/position etc.) is good for people who cannot stand stress? position
Are there potentially zones of calmness at a market, which can be calculated? sometimes
Which two kinds of breakouts do you know yet? + and -
What is diversification? a term used to sell mf portfolios and sip
Are Manipulators or Big Speculators menace to trading? If yes, how do you keep away from them ? volume are invited of every type
Commissions and costs have become much cheaper over the years. Is that a supportive factor for day-traders? yes
Is the expected hit-ratio at a trendfollowing strategy above or below 50%? abive 75%
How long are trades lasting, when you are daytrading? depends on trade
Are markets more often in trends or in sideways movements?trends always
Name at least one scenario that can be used to make money on a market!
buy x shares say 10000 at first wawe sell it in intraday and cover
Name the highest risk/reward strategy that you know?
betting on shares who have broken the last support in intra when market is in uptrend
Name the lowest risk/reward strategy that you know?
delivery+intra+future hedgeing
Are mechanic systems capable of reducing the stress of the trader? very significantly
Is it sufficient to evaluate a trading-strategy by only the net profits? it is ofcourse what you play for analize it always in 15 days
Do trendfollowers or contrarians usually have a better hit-ratio? none
Is it making sense to trade more than one strategy on the same stock? yes depends on the swing side of market
Is a horizontal line in the chart, indicating support and/or resistance, indicating a support and a resistance for sure and in reality? ya but gann uncle interfears sometimes
Are there prices or price-regions that are more traded than others on subsequent days?yes
What is the 'momentum of a price-movement? jti
How many more contracts have to be bought than sold to call the market overbought? still thinking
How could you measure volatility? untill you are out there in ocean you cannot feel the effect6 of waves
Name one basic strategy of trendfollowing? sms hahaha
Which indicators may tell us whether the market is sideways or in trend?
my profit loss statement
How could we know before everybody whether demand or supply will be greater?
prefer not to awnser
The market is rising with rising volume. Were more traders buying than selling? Or are more contracts been bought than sold? Or what? ever been to terminal and seen panic buying ? that should awnser
what is the relation between volumes and price? difficult to rig
When is a stock unable to fall any further? whe the divident/year=cmp
How does the movement of DOW/NIKKIE affects your stock ?
it helps some persons to buy and sell some stock at wrong prices
Should exits be more important than entries ? or are they equally important ?
a pri should be designed indivisually according to risk taking appitite
Should we decide on the worst case or should we decide on the average case?none best case eg stock near its bottom buy and avrage till uptrend begens
Among 100 people who start trading, how many will survive in the markets?
one me and one who understands the awnsers

just waiting for comments from seniors on my replies

Generally it is observed that 90% of the people LOSE money in INTRADAY trading,5% just break-even and 5% in PROFITS.Everybody wants to be in 5% bracket ,but end up in 90% bracket.