Stock Strategies Flashcards
(25 cards)
What is intraday trading?
Intraday trading involves buying and selling financial instruments within the same trading day.
True or False: Intraday traders hold positions overnight.
False
What is a common goal of intraday trading?
To capitalize on short-term price movements.
Fill in the blank: Intraday trading typically requires a __________ strategy.
highly active
What is a ‘day trader’?
A day trader is an individual who buys and sells securities within the same trading day.
Which of the following is NOT an intraday trading strategy? (A) Scalping (B) Swing trading (C) Momentum trading
B) Swing trading
What does ‘scalping’ refer to in intraday trading?
Scalping refers to making numerous trades throughout the day to profit from small price changes.
True or False: Technical analysis is commonly used in intraday trading.
True
What is a ‘stop-loss’ order?
A stop-loss order is an order placed to sell a security when it reaches a certain price to limit losses.
What is ‘momentum trading’?
Momentum trading involves buying securities that are trending upward and selling those that are trending downward.
Fill in the blank: __________ charts are often used by intraday traders to analyze price movements.
Candlestick
What is the purpose of using a trading journal?
To track trades, analyze performance, and improve future trading strategies.
Which indicator is commonly used to identify overbought or oversold conditions?
Relative Strength Index (RSI)
What is a ‘limit order’?
A limit order is an order to buy or sell a security at a specific price or better.
True or False: High volatility is beneficial for intraday trading.
True
What is ‘volume’ in stock trading?
Volume refers to the number of shares or contracts traded in a security or market during a given period.
What does the term ‘liquidity’ mean in the context of intraday trading?
Liquidity refers to how easily a security can be bought or sold without affecting its price.
Which trading strategy focuses on quick trades and small profits?
Scalping
What is the main advantage of using a trading simulator?
To practice trading strategies without risking real money.
Fill in the blank: __________ trading involves holding positions for several days to weeks.
Swing
What is ‘arbitrage’ in trading?
Arbitrage is the practice of taking advantage of price differences in different markets.
True or False: Using leverage can increase both potential profits and potential losses.
True
What is a ‘bull market’?
A bull market is a market condition where prices are rising or are expected to rise.
What does ‘short selling’ mean?
Short selling involves selling a security that the seller does not own, with the expectation of buying it back at a lower price.
