Study Guide for Come Into My Trading Room - Forex Factory

FINANCIAL TRADING FOR BABES IN THE WOODS 87
Answer 4
1. C
2. A
3. A, B, C
4. B, C
5. A, B, C
Give yourself a point for each completely correct answer.
Options are deadly for most buyers who must jump through three
hoops, correctly choosing the vehicle, price, and time. A stock makes
you a part owner of a business, whereas both futures and options deal
in contracts for future delivery and allow you to get out of your commitment
before the due date. A trader with no money management
skills will lose in every market, but his loss will come sooner in options
or futures than in stocks. The trend is your friend in every market; there
is no point in buying when prices are falling.
Answer 5
1. A, B, C
2. C
3. B
4. D
5. A
Give yourself a point for each completely correct answer.
Dripping water shapes mountains, and commissions, slippage, and
expenses shape traders’ accounts, affecting them more in the long run
than most trades. Commissions are set by brokers, and slippage can often
be avoided, but expenses can be controlled by traders. Slippage is the dis-