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Study Guide for Come Into My Trading Room - Forex Factory

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112 ANSWERS AND RATING SCALES<br />

tweaked, except <strong>for</strong> a few inviolate rules, including money management<br />

rules. Even if a system seems to do better after dropping those rules, you<br />

should not expose your account to unlimited risk.<br />

Answer 42<br />

C. 1, 2, and 3. Give yourself four points <strong>for</strong> choosing the correct answer.<br />

The main value of paper trading is it allows you to test your discipline<br />

and ability to do homework day after day, although most people simply<br />

escape into it after losing money. If done right, paper trading takes just<br />

as much time as the real thing. The results of paper trading almost<br />

always look better than real trading, because there is no emotional pressure<br />

from risking money.<br />

Answer 43<br />

1. C<br />

2. D<br />

3. A<br />

4. D<br />

5. B<br />

Give yourself a point <strong>for</strong> each correct answer.<br />

You cannot argue with the direction or the numerical value of an<br />

indicator, which is why their signals are more objective than chart patterns.<br />

The three indicator groups almost always give contradictory signals.<br />

One of the main challenges in technical analysis is to reconcile<br />

those conflicts and profit from them.

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