Study Guide for Come Into My Trading Room - Forex Factory

116 ANSWERS AND RATING SCALES
Answer 50
2. Penny stocks are unsuitable for day-trading. Give yourself four points
for choosing the right answer.
The two essential criteria for choosing day-trading stocks are liquidity
and volatility. You can find stocks that keep making big moves on
high volume among the most actives or the most popular stocks. Penny
stocks may be promising for investors, but are not good for day-traders
because of their narrow intraday ranges and low liquidity.
Answer 51
1. D
2. E
3. C
4. B
5. A
Give yourself a point for each correct answer.
The intraday volume curve is normally U-shaped—highest during the
first and last half-hours of trading. Early in the session outsiders crowd
into the market, and by the end of the day the pros dominate the action.
A wide opening range may define the high and the low of the day, but
prices are likely to break out of a narrow opening range.
Answer 52
1. B
2. A
3. D, E, F, G
4. C
5. C-H