JUST A SIMPLE TEST FULL OF SIMPLE QUESTIONS THAT MAY GIVE YOU AN INDICATION ON HOW MUCH OF THE "LITTLE STUFF" YOU REALLY DO KNOW.
[Don't be too hard on yourself if you don't know the answers to some of the questions. Keep in mind that most of these questions/answers are based on the type of material (and opinion) that Mike would teach during one of his typical mentoring sessions.]
It's TEST Time, baby!!! Enjoy!:
1. What type of an order would be most beneficial to use when trying to get in to the stock market?
a. Stop order
b. Stop-Limit order
c. Market order
d. Limit order
2. What is the first step of [Mike's] Trading Routine?
a. Update journal
b. Assess overall markets
c. Sort out (delete) stocks less than 500k shares traded daily
d. Manage current positions
3. What does Mike consider the primary focus of new traders should be?
a. Capital preservation
b. Immediate gains
c. Manage losses
d. Success
WHY?: ______________________________________
4. When should a new trader take a jump into the leveraged markets of options and futures trading?
a. Within one month of trading
b. Within six months of trading
c. Within one year of trading
d. Whenever the trader feels comfortable to do so
5. Mike's explanation of "Chart Reading 101" includes: determining the relationship between the _________ most _________ , _________ , and _________ swing highs and swing lows.
a. Four, noticeable, identifiable, visual
b. Two, recent, established, insignificant
c. Four, established, identifiable, significant
d. Two, recent, established, significant
6. True or False: A seasoned, veteran trader should expect to win at least 65% to 75% of the time of any bull or bear market.
a. True
b. False
7. True or False: If you are going long (buying shares/contracts) into a position and notice that the trade is now going against you (after you have been filled and now own the shares/contracts), it is okay to adjust your stop-loss down in order to stay in the trade longer because you really, really like the setup, company, or potential of the trade.
a. True
b. False
8. What is Mike’s favorite college football team?
a. Purdue Boilermakers
b. Brigham Young Cougars
c. Notre Dame Fighting Irish
d. Shame on you if you don’t know this one!!
9. What type of an order is most beneficial to use for a protective stop-loss?
a. Limit order
b. Stop-Limit order
c. Market order
d. Stop order
10. When referring to "market lingo" or vernacular, what does the word "stop" mean?
a. Trigger
b. Or better
c. Hault!
d. Buy
11. What is the minimum reward to risk ratio that should be considered before getting into a position?
a. 2:1
b. 1:1
c. 4:1
d. 7:1
12. What type of an order would probably be most beneficial to use for a profit-target?
a. Limit order
b. Stop order
c. Market order
d. Stop-Limit order
13. For beginning and/or new traders, how much of your capital should you probably risk at any single moment?
a. No more than 10%
b. No more than 5%
c. It’s a personal decision
d. No more than 2% to 3%
14. In Mike's "T.R.E.N.D. Analysis", what does the “E” stand for?
a. Exercise discipline
b. Equity
c. Envelope trades
d. Equal cost consideration
What is encompassed in this step?: __________________________________________
15. According to Mike, what are the four primary criteria you should consider when trying to find a bullish pull-back buy if you don't have your own criteria already clearly established?
1 - _________________________________
2 - _________________________________
3 - _________________________________
4 - _________________________________
16. What three stocks (Exchange Traded Funds) should you look at every day in order to gauge an effective assessment of the overall market?
a. VICK, VIX, DJIA
b. SPY, DJIA, VICK
c. DIA, SPY, QQQQ
d. QQQQ, SPY, GOOG
Use the following data to answer the remaining questions!
Goldman Sachs (GS) has been trading in an overall bullish uptrend for the past six months. The trend is easily identifiable and it currently looks as if the price is resting near the 20MA. The day ends with the chart showing a classic “doji”. The day opened at $124.67 and closed at $124.79 with a high of $125.52 and a low of $123.97. There are no earnings announcements for the next two months and news on the company is nominal.
17. The preferred (and most likely) strategy for this type of setup would be:
a. Buy (go long)
b. Sell (short)
c. Nothing
d. Put it in a watch list and wait until tomorrow
18. The entry price could/should be:
$_____________________ but no more than $__________________
19. The stop-loss price could/should be:
$_____________________
20. How much capital are you risking if you plan to buy 100 shares?
$_____________________
Bonus Question: Did you have an enjoyable, uplifting, confidence-building experience with Mike?
A. Absolutely!!
B. Heck No!!
...FOR THE ANSWERS TO THE QUESTIONS, JUST CLICK HERE...BUT I BET YOU DON'T NEED THEM, RIGHT?!?!
THANKS FOR PLAYING!!!!!!!!!
Created by M.J. Kleinhenz -- KayLine Strategies, L.L.c. -- 2003