Study Guide for Come Into My Trading Room - Forex Factory

ADVANCED CONCEPTS 123
Answer 61
1. B
2. E
3. D
4. C
5. A
6. F
Give yourself a point for each correct answer.
Market noise is the extent by which today’s extreme price extends outside
yesterday’s extreme—the high in downtrends, the low in uptrends.
Average Penetration is the average level of market noise during the
lookback period. We multiply Average Upside Penetration by the coefficient
and add it to the highs to place stops in downtrends, or multiply
Average Downside Penetration by the coefficient and subtract it from
the lows to place stops in uptrends.
Answer 62
D. 1, 2, 3, and 4. Give yourself four points for choosing the right answer.
Margin works great when you’re right, but hits you even harder on
losing trades. It raises the cost of trading, as well as the stress level,
because with margin you trade beyond your means. A small trader who
goes on margin can make more money when he is right, but is almost
certain to underperform a cash trader in the long run.