True or False
- The big money in trading is made when one can get long at lows after a big downtrend.
- It’s good to average down when buying.
- After a long trend, the market requires more consolidation before another trend starts.
- It’s important to know what to do if trading in commodities doesn’t succeed.
- It is not helpful to watch every quote in the markets one trades.
- It is a good idea to put on or take off a position all at once.
- Diversification is better than always being in 1 or 2 markets.
- If a day’s profit or loss makes a significant difference to your net worth, you are overtrading.
- A trader learns more from his losses than his profits.
- Except for commission and brokerage fees, execution costs for entering orders are minimal over the course of a year.
- It’s easier to trade well than to trade poorly.
- It’s important to know what success in trading will do for you later in life.
- Uptrends end when everyone gets bearish.
- The more bullish news you hear the less likely a market is to break out on the upside.
- For an off-floor trader, a long-term trade ought to last 3 or 4 weeks or less.
- Other’s opinions of the market are good to follow.
- Volume and open interest are as important as price action.
- Daily strength and weakness is a good guide for liquidating long term positions with big profits.
- Off-floor traders should spread different markets of different market groups.
- The more people are going long the less likely an uptrend is to continue in the beginning of a trend.
- Off-floor traders should not spread different delivery months of the same commodity.
- Buying dips and selling rallies is a good strategy.
- It’s important to take a profit most of the time.
- Of 3 types of orders (market, stop, and resting), market orders cost the least skid.
- The more bullish news you hear and the more people are going long the less likely the uptrend is to continue after a substantial uptrend.
- The majority of traders are always wrong.
- Trading bigger is an overall handicap to one’s trading performance.
- Larger traders can muscle markets to their advantage.
- Vacations are important for traders to keep the proper perspective.
- Undertrading is almost never a problem.
- Ideally, average profits should be about 3 or 4 times average losses.
- A trader should be willing to let profits turn into losses.
- A very high percentage of trades should be profits.
- A trader should like to take losses.
- It is especially relevant when the market is higher than it’s been in 4 and 13 weeks.
- Needing and wanting money are good motivators to good trading.
- One’s natural inclinations are good guides to decision making in trading.
- Luck is an ingredient in successful trading over the long run.
- When you’re long, limit up is a good place to take a profit.
- It takes money to make money.
- It’s good to follow hunches in trading.
- There are players in each market one should not trade against.
- All speculators die broke
- The market can be understood better through social psychology than through economics.
- Taking a loss should be a difficult decision for traders.
- After a big profit, the next trend following trade is more likely to be a loss.
- Trends are not likely to persist.
- Almost all information about a market is at least a little useful in helping make decisions.
- It’s better to be an expert in 1-2 markets rather than try to trade 10 or more markets.
- In a winning streak, total risk should rise dramatically.
- Trading stocks is similar to trading commodities.
- It’s a good idea to know how much you are ahead or behind during a trading session.
- A losing month is an indication of doing something wrong.
- A losing week is an indication of doing something wrong.
- One should favor being long or being short – whichever one is comfortable with.
- On initiation one should know precisely at what price to liquidate if a profit occurs.
- One should trade the same number of contracts in all markets.
- If one has $10000 to risk, one ought to risk $2500 on every trade.
- On initiation one should know precisely where to liquidate if a loss occurs.
- You can never go broke taking profits.
- It helps to have the fundamentals in your favor before you initiate.
- A gap up is a good place to initiate if an uptrend has started.
- If you anticipate buy stops in the market, wait until they are finished and buy a little higher than that.