Study Guide for Come Into My Trading Room - Forex Factory

66 QUESTIONS
Question 71—The 2% Rule
Which of the following trades may be taken in a $50,000 account? (Remember,
try to answer without a calculator.)
1. Buy 500 shares of a $25 stock, with a stop at $23.50
2. Sell short 300 shares of a $48 stock, with a stop at $51
3. Buy 1,000 shares of a $12 stock, with a stop at $11
4. Sell short 200 shares of a $92 stock, with a stop at $98
5. Buy 700 shares of a $33 stock, with a stop at $31
A. 1
B. 1 and 2
C. 1, 2, and 3
D. 1, 2, 3, and 4
E. All of the above
Question 72—Businessman’s Risk
Which of the following exposes you to a businessman’s risk and which
to risk of a loss?
1. $100,000 account, buy 1,000 shares of a $50 stock, stop at $48.75
2. $20,000 account, buy 300 shares of a $30 stock, stop at $28
3. $20,000 account, buy 200 shares of a $20 stock, stop at $18.50
4. $100,000 account, buy 1,000 shares of a $40 stock, stop at $36
5. $100,000 account, buy 1,000 shares of a $50 stock, no stop
A. Businessman’s risk
B. Risk of loss