The Diary of a Trader: August 2018

Wednesday, August 29, 2018

What is Bitcoin Cash | Cryptocurrency

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Friday, August 10, 2018

Quizzes 9 to 12

Why is it important to trade with a regulated broker?

A) a financial authority supervises the broker.
B) Safety of funds.
C) It doesn’t matter if the broker is regulated or not.
D) It is not important.

The wrong answers are C) it doesn’t matter if the broker is regulated or not, and D) it is not important. Trading with an unregulated broker is asking for trouble, as your funds will be in jeopardy. This is especially true as many Forex traders use brokers in other countries.

The correct answers are A) a financial authority supervises the broker, and B) safety of funds. When a regulatory entity regulates a broker, they must adhere to strict financial laws. This gives you the peace of mind when trading necessary as your deposit will be there when you need it.

A PIP is?

A) the difference between the entry and exit price.
B) Something to smoke.
C) Something that belongs to the broker.
D) A profit or loss traders realize.

The wrong answers are B) something to smoke, and C) something that belongs to the broker.

The correct answers are A) the difference between the entry and exit price, and D) a profit loss traders realize.

The ECB stands for?

A) European Central Bank
B) European Central Boulevard
C) East Central Bahrain
D) European Central Banking

The wrong answers are B) European Central Boulevard, C) East Central Bahrain, and D) European Central Banking.

The correct answer is A) European Central Bank. The European Central Bank is the central bank of the European Union, and one of the largest central banks in the world. It is highly influential in the Forex markets.

Technical analysis is?

A) charting the currency market to forecast future pricing.
B) Looking for historical patterns to forecast future prices.
C) Formed of trend indicators.
D) Formed of oscillators.

There are no wrong answers in this scenario.

The correct answers are A), B), C), and D). The art of technical analysis uses several different types of indicators, including trend indicators and oscillators to predict future pricing based upon historical moves in the currency markets.

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Quizzes 93 to 98

A margin called is received when?

A) Balance is whipped out
B) Equity is shrinking below free margin
C) All trades are in profit
D) None of the above

The wrong answers include: A) Balance is whipped out, C) All trades are in profit, and D), None of the above.

The correct answer is B) Equity has shrank below the free margin available in the account.

RBA stands for?

A) Reserve Bank of Austria
B) Reserve Bank of Australia
C) Reserve Bank of Armenia
D) None of the above

The wrong answers include: A) Reserve Bank of Austria, C) Reserve Bank of Armenia, and D), None of the above.

The correct answer is B), Reserve Bank of Australia. The RBA is one of the largest central banks in the world, and is very important to currency traders.

ISM Manufacturing is released in?

A) Eurozone
B) United States
C) Canada
D) United Kingdom

The wrong answers include: A) Eurozone, C) Canada, and D) United Kingdom.

The correct answer is B), the United States.

A wedge pattern is?

A) A continuation pattern
B) A stop and go pattern
C) A diamond pattern
D) A reversal pattern

The wrong answers include: A) A continuation pattern, B) Stop and Go pattern, and C), A diamond pattern.

The correct answer is D), A reversal pattern.

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Quizzes 88 to 91

NFP stands for?

A) new food protocol
B) non-food protocol
C) non-farm payrolls
D) none of the above

The wrong answers include: A) new food protocol, B) non-food protocol, and D) none of the above.

The correct answer is C) non-farm payrolls. This is the jobs number that the United States releases on the first Friday of every month, and is followed closely by currency traders.

A higher unemployment rate is?

A) good for currency
B) bad for a currency
C) it doesn’t matter
D) none of the above

The wrong answers include: A) good for currency, C) it doesn’t matter, and D) none of the above.

The correct answer is B) bad for currency. A high unemployment rate is a sign of a soft economy and is typically reflected in the value of the currency.

The most liquid currency pair is?

A) USD/CAD
B) USD/JPY
C) EUR/USD
D) GBP/USD

The wrong answers include A) USD/CAD, B) USD/JPY, and D) GBP/USD.

The correct answer is C) EUR/USD. Not only is the EUR/USD pair the most liquid currency pair, but it is also considered to be the most liquid financial market in the world.

Every day, the Forex market exchanges over?

A) $5 million
B) $5 billion
C) $5 trillion
D) none of the above

The wrong answers include A) $5 million, B) $5 billion, and D) none of the above.

The correct answer is C) $5 trillion. The Forex markets are by far the largest market in the world, exchanging over $5 trillion worth of currency every day.

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Quizzes 84 to 87

GDP stands for?

A) Gross Ducks Product
B) Gross Domestic Product
C) Gross Different Product
D) none of the above

The wrong answers include: A) Gross Ducks Product, C) Gross Different Product, and D) none of the above.

The correct answer of course is B) Gross Domestic Product. The GDP is a measurement of the value of a country’s economy and one of the most important economic indicators for the currency markets.

The GDP Release Shows?

A) goods manufactured in an economy
B) services produced by an economy
C) total value of goods and services in an economy
D) none of the above

The wrong answers include: A) goods manufactured in an economy, B) services produced by an economy, and D) none of the above.

The correct answer is C) total value of goods and services in an economy.

The Unemployment Claims Indicator is released in?

A) United Kingdom
B) United States
C) Japan
D) Australia

The wrong answers included A) United Kingdom, C) Japan, and D) Australia.

The correct answer is B) the United States.

The NFP Number is released in?

A) United States
B) United Kingdom
C) Australia
D) Euro zone

the wrong answers include B) United Kingdom, C) Australia, and D) Euro zone.

The correct answer is A) United States. The Nonfarm Payroll number is an employment measure that the Bureau of Labor Statistics releases on the first Friday of every month and is the biggest economic indicator for the Forex markets.

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Quizzes 81 to 83

The Forex market is open?

A) 24/7
B) 24/5
C) only during the daylight
D) none of the above

The wrong answers include A) 24/7, C) only during the night, and D) none of the above.

The correct answer is B) 24/5. The currency markets are closed on the weekend.

In Forex trading, a gap is?

A) Mandatory to close
B) mandatory to close on the same day
C) mandatory to close on the same week
D) none of the above

The wrong answers include A) mandatory to close, B) mandatory to close on the same day, and C) mandatory to close on the same week.

The correct answer is D) none of the above.

In Forex trading, hedging represents?

A) To sell and buy a currency pair in the same account
B) to open a sell and buy position of the same currency pair and the same account
C) buying or selling at the same time
D) none of the above

The wrong answers include A) to sell and buy a currency pair in the same account, C) buying or selling at the same time, and D) none of the above.

The correct answer is B) to open a sell and buy position of the same currency pair in the same account.

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Quizzes 77 to 80

When a price level was meeting a support level, it means?

A) It is difficult to rise
B) it is difficult to fall further
C) it is possible to bounce
D) none of the above

The wrong answers include A) it is difficult to rise, and D), none of the above.

The correct answer is B) it is difficult to fall further, and C) it is possible to bounce. This is because a support level represents an area where there is a lot of buying pressure.

Resistance means?

A) Price is reaching an area difficult to break to the upside
B) price is reaching an area difficult to break to the downside
C) has no meaning and technical analysis
D) none of the above

The wrong answers include B) price is reaching an area difficult to break to the downside, C) has no meaning in technical analysis, and D) none of the above.

The correct answer is A) price is reaching an area difficult to break to the upside. This is because there is a lot of selling pressure at the level.

In Forex trading, a gap is normally forming?

A) Tuesdays
B) Wednesdays
C) Mondays
D) Fridays

The wrong answers include A) Tuesdays, B) Wednesdays, and D) Fridays.

The correct answer is C) Mondays. This is normally due to headlines or news coming across the wires during the weekend. As it is a 24-hour market, it’s almost impossible to get a gap in any other time.

Forex stands for?

A) Foreigner exchange
B) Foreign exchange
C) forever exchange
D) none of the above

The wrong answers include A) foreigner exchange, C) forever exchange, and D) none of the above.

The correct answer of course is B) foreign exchange.

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Quizzes 73 to 76

A trend is?

A) Your friend
B) a series of lower/highs or higher/lows
C) irrelevant
D) all of the above

The wrong answers include C) irrelevant and D), all of the above.

The correct answers are A) your friend, and B) a series of lower/highs or higher/lows. By following the trend, you are using the momentum of the market to hopefully reach your target. Going against the trend is without a doubt one of the riskiest and dangerous ways to trade the market.

A bullish channel is a channel that?

A) Is falling
B) is horizontal
C) is rising
D) is none of the above

The wrong answers include A) is falling, B) is horizontal, and D) none of the above.

The correct answer is C) is rising. Bullish momentum is positive momentum and pricing, meaning that an asset is gaining value.

In a bullish trend?

A) Traders look to sell spikes
B) traders look to buy dips
C) traders look to sell from higher levels
D) traders look to sell from lower levels

The wrong answers include A) traders look to sell spikes, C) traders look to sell from higher levels, and D) traders look to sell from lower levels.

The correct answer is B) traders look to buy dips. This offers value in an asset that is rising. By going long on dips, the trader is joining the momentum when prices become cheap.

Metatrader 5 is?

A) No different than MetaTrader 4
B) more popular than MetaTrader 4
C) the same as MetaTrader 4
D) none of the above

The wrong answers include A) no different than MetaTrader 4, B) more popular than MetaTrader 4, and C), the same as MetaTrader 4.

The correct answer is D) none of the above. MetaTrader 5 is the most recent version of the software package.

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Quizzes 69 to 72

Fibonacci tools are?

A) Expansion
B) Retracement
C) time zones
D) all of the above

The wrong answers include A) expansion, B) retracement, and C) time zones.

The correct answer is D), all of the above. There are several different tools that use Fibonacci numbers to predict support and resistance.

A trendline is?

A) The line of a trend
B) a normal line on the screen
C) it has no value
D) none of the above

The wrong answers include B) a normal line on the screen, C) it has no value, and D) none of the above.

The correct answer is A) the line of the trend. Trendlines tend to offer dynamic support and resistance in a trend, as they are tested several times and continue to offer either said support or resistance.

The minimum number of points to define a trendline is?

A) Four
B) Three
C) Two
D) Six

Wrong answers include A) Four, B) Three, and D), Six.

The correct answer is B) Two. Having said that, the more touches that a trendline receives, the more reliable it tends to be.

Which of the following are trading theories?

A) Elliott Wave theory
B) Gartley trading method
C) point and figure
D) all of the above

The wrong answers include A) Elliott Wave theory, B) Gartley trading method, and C) point and figure.

The correct answer is D) all of the above.

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Quizzes 66 to 68

Fibonacci numbers are?

A) A very important part of technical analysis
B) useless in technical analysis
C) they don’t make sense
D) all of the above

The wrong answers are B) useless in technical analysis, C) they don’t make sense, and D) all of the above.

The correct answer is A) a very important part of technical analysis. Fibonacci numbers are used by traders to identify potential support and resistance on trading charts.

The most important Fibonacci ratio is?

A) 38.2%
B) 50%
C) 61.8%
D) 23.6%

The wrong answers are A) 38.2%, B) 50%, and D) 23.6%.

The correct answer is C), 61.8%. This area tends to attract a lot of interest by traders on pullbacks.

Elliott Wave theory is?

A) A book
B) a trading strategy
C) a movie
D) none of the above

The wrong answers are A) a book, C) a movie, and D) none of the above.

The correct answer is B) a trading strategy. Elliott Wave theory is based upon the market often making a certain amount of waves as it goes higher or lower. Traders will count these waves to discern where the market may go next.

In trading, the golden ratio is?

A) The 38.2% ratio
B) the 61.8% ratio
C) the 50% ratio
D) the 23.6% ratio

The wrong answers are A) the 38.2% ratio, C) the 50% ratio, and D) the 23.6% ratio.

The correct answer is B) the 61.8% Fibonacci ratio.

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Quizzes 61 to 64

Hiking the interest rates means?

A) Easing the monetary policy
B) tightening the monetary policy
C) everything stays the same
D) none of the above

The wrong answers include A) easing the monetary policy, C) everything stays the same, and D), none of the above.

The correct answer is B) tightening the monetary policy. By raising interest rates, central banks tighten the amount of money that is flowing in the economy, thereby slowing down growth.

If a central bank cuts the interest rate it is?

A) Positive for the currency
B) negative for the currency
C) neutral for the currency
D) none of the above

The wrong answers include A) positive for the currency, C) neutral for the currency, and D), none of the above.

The correct answer is B) negative for the currency. This is because the bond market will pay less to investors. This drives down the demand for the host country’s currency.

Before opening a live trading account, it is desirable to?

A) Trade on a demo account first
B) know the risks involved
C) know what moves the market
D) all of the above

The wrong answers include A), trade on a demo account first, B) know the risk involved, and C) know what moves the market.

The correct answer of course is D) all of the above.

In Forex trading, FOMC represents?

A) Federal Open Market Committee
B) Free Open Market Committee
C) For Open Market Committee
D) none of the above

The wrong answers are B) Free Open Market Committee, C) For Open Market Committee, and D), none of the above.

The correct answer is A) Federal Open Market Committee. The FOMC meets to make decisions involving interest rate hikes and cuts for the Federal Reserve.

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Quizzes 6 to 9 Beginner

The Relative Strength Index (RSI) is?

A) A trend indicator
B) An oscillator
C) A trading theory
D) None of the above

Wrong answers include A) A trend indicator, C) A trading theory, and D) None of the above.

The correct answer is B) An oscillator

The RSI travels from?

A) 0-80
B) 20-80
C) 30-70
D) 40-60

Wrong answers include A) 0-80, C) 30-70, and D) 40-60

The correct answer is B) 20-80

The most popular trend indicator is?

A) A moving average
B) The Bollinger Bands indicator
C) The Parabolic SAR indicator
D) The Ichimoku Kinko Hyo

The wrong answers include B) The Bollinger Bands indicator, C) The Parabolic SAR indicator, and D) The Ichimoku Kinko Hyo.

The correct answer is A) A moving average.

A moving average can be used as?

A) A place where price may find support or resistance
B) A place that is ideal to buy in a rising trend
C) A place where traders sell in a falling trend
D) All of the above

The wrong answers include A) A place where price may find support or resistance, B) A place that is ideal to buy in a rising trend, and C) A place where traders sell in a falling trend.

The correct answer is D) All of the above.

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Quizzes 57 to 60

The economic calendar is offered?

A) For a fee
B) for free
C) has no importance in Forex trading
D) none of the above

The wrong answers include A) for a fee, C) it has no importance in the Forex trading, D) and none of the above.

The correct answer is B) for free. Economic calendars can be found for free at several places around the Internet.

The most important economic events as shown in the economic calendar are marked with the color?

A) Green
B) Orange
C) Blue
D) Red

The wrong answers include A) green, B) orange, and C) blue.

The correct answer is D) red. On most economic calendars, high-level events are color-coded with red lettering or symbols.

Who is responsible for markets making aggressive moves in less than a second?

A) Robots
B) traders that are taking a trade at the same time
C) central banks
D) someone else

The wrong answers include B) traders that are placing a trade at the same time, C) central banks, and D), someone else.

The correct answer is A) robots. High-frequency traders use algorithms and automated trading to take advantage of small fluctuations in price. This adds to the short-term volatility of the markets.

When a central bank raises the interest rate it is being said that?

A) It hiked the rate
B) it cut
C) it did nothing
D) none of the above

The wrong answers include B) it cut, C) it did nothing, and D), none of the above.

The correct answer is A), it hiked the rate.

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Quizzes 53 to 56

If the broker offers segregated funds it means?

A) The broker can use the deposited money how it pleases.
B) The funds are deposited in a custodial bank.
C) The broker cannot use the deposited funds to pay other withdrawals.
D) Something the trader should ignore.

The wrong answers include A) the broker can use the deposited money how it pleases, D) something the trader should ignore.

The correct answers include B) the funds are deposited in a custodial bank, and C) the broker cannot use the deposited funds to pay other withdrawals.

A currency pair represents?

A) Nothing but the possibility to make a profit.
B) 2 currencies that reflect differences between their economies.
C) Something that is not useful in trading.
D) None of the above.

The wrong answers include A) Nothing but the possibility to make a profit, C) something that is not useful in trading, and D) none of the above.

The correct answer is B) 2 currencies that reflect differences between their economies.

The value of a PIP is?

A) Constant
B) fluctuates
C) meaningless
D) none of the above

The wrong answers include A) constant, C) meaningless, and D), none of the above.

The correct answer is B) fluctuates.

A cross pair?

A) Consolidates more than a major pair
B) moves in the same way
C) is not consolidating
D) none of the above

The wrong answers include B) moves in the same way, C) is not consolidating, and D) none of the above.

The correct answer is A) consolidates more than a major pair. This is because it will have influence from a couple of different currencies as they are traded against the US dollar. Because of this, stagnation is much easier.

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Quizzes 49 to 52

When a central bank is hiking the interest rate, this is?

A) Positive for its currency
B) negative for its currency
C) neutral for its currency
D) none of the above

The wrong answers are B) negative for its currency, C) neutral for its currency, and D) none of the above.

The correct answer it is A) positive for its currency. This is because money chases higher interest rates, especially in the bond markets. As interest rates rise, this creates more demand for the host country’s currency.

In Forex trading, “Fed” stands for?

A) Foreign-exchange
B) Federal Reserve of the United States
C) European Central Bank
D) Bank of Japan

The wrong answers are A) foreign-exchange, C) European Central Bank, and D) Bank of Japan.

The correct answer is B) Federal Reserve of the United States.

A trader should opt for?

A) A 5-digit account
B) a 4-digit account
C) a 6-digit account
D) none of the above

The wrong answers are B) 4-digit account, C) 6-digit account, and D) none of the above.

The correct answer is B) a 5-digit account. This gives the trader more precision on entries and exits.

A 5-digit account shows that?

A) The broker is a non-dealing desk
B) the broker is not a market maker
C) ECN or STP technology
D) all of the above

The wrong answers are A) the broker is a non-dealing desk, B) the broker is not a market maker, and C) ECN or STP technology.

The correct answer is D) all of the above.

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Quizzes 45 to 48

In Forex trading, HFT refers to?

A) High-frequency trading
B) Hyper frequency trading
C) Hoover frequency trading
D) none of the above

The wrong answers are B) hyper frequency trading, C) Hoover frequency trading, and D) none of the above.

The correct answer is A) high-frequency trading. High-frequency trading refers to computer-driven trades that happen in milliseconds, and take very small amounts of profit out of the marketplace.

An expert advisor is?

A) A trading robot
B) a trading specialist
C) a broker’s representative
D) none of the above

The wrong answers are B) a trading specialist, C) a broker’s representative, and D) none of the above.

The correct answer is A) a trading robot. An expert advisor is an algorithm that automatically trades the Forex markets. It is based upon calculations that hopefully make money over time and enters and exits the market automatically.

A cross pair is one that?

A) Has the US dollar in it
B) doesn’t have the US dollar in it
C) one that crosses multiple time frames
D) none of the above

The wrong answers include A) has the US dollar in it, C) one that crosses multiple time frames, and D) none of the above.

The right answer is B) a currency pair that does not have the US dollar in it. As the US dollar is the world’s reserve currency, all major pairs include the greenback.

A liquid currency pair is one that?

A) Moves a lot
B) barely moves
C) stands still
D) none of the above.

The wrong answers include B) barely moves, C) stands still, and D) none of the above.

The correct answer is A) moves a lot. This is because there is a large amount of volume in the market.

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Quizzes 41 to 44

In Forex trading “Aussie” stands for?

Euro
Great Britain pound
Swiss franc
Australian dollar

The wrong answers include A) Euro, B) Great Britain pound, and C), the Swiss franc.

The correct answer is D) Australian dollar.

In Forex trading “Cable” stands for?

Great Britain pound
Swiss franc
New Zealand dollar
Japanese yen

The wrong answers include B) Swiss franc, C) New Zealand dollar, and D), Japanese yen.

The correct answer is A), the British pound. “Cable” refers to the underground telegraph cables that once ran from Great Britain to the United States. Because of this, when traders talk about “Cable”, they are referring to the British pound versus the US dollar.

In Forex trading “Kiwi” stands for?

Swiss franc
Norwegian krone
Japanese yen
New Zealand dollar

The wrong answers include A) Swiss franc, B) Norwegian krone, and C), the Japanese yen.

The correct answer is D), the New Zealand dollar. This is because of the nickname for New Zealanders, “kiwis.”

The economic release that measures inflation is?

Consumer Price Index
Purchasing Managers Index
ISM Manufacturing
none of the above

The wrong answers include B) Purchasing Managers Index, C) ISM Manufacturing, and D) none of the above.

The correct answer is A) Consumer Price Index. The Consumer Price Index measures a “basket of goods” by the average citizen of the country. The higher the pricing, the more inflationary the situation has become for the average person.

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Quizzes 37 to 40

The following are participants in the Forex market?

A) Forex brokers
B) retail traders
C) liquidity providers
D) all of the above

The wrong answers include A) Forex brokers, b) retail traders, and c) liquidity providers.

The correct answer is d) all of the above. There are several different reasons for traders to be involved in the Forex market, as well as brokers and liquidity providers. The Forex market is the largest market in the world, mainly because of all of the participants that are forced to go in from time to time.

The role of the central bank is?

A) To set the exchange rate of currency
B) to set the monetary policy in its jurisdiction
C) to make a profit
D) none of the above

The wrong answers include a) set the exchange rate of a currency, b) to make a profit, and d) none of the above. That being said, there are some currencies that are “pegged” to other currencies or assets by the local central bank. However, you will be hard-pressed to find a brokerage firm that offers these currencies.

In Forex trading “BoJ” stands for?

A) Bank of Jokes
B) Bank of Japan
C) Bank of Jaipur
D) none of the above

the wrong answers include a) Bank of jokes, C) Bank of Jaipur, and D) none of the above.

The correct answer is b) Bank of Japan. As one of the world’s largest central banks, the Bank of Japan is referred to in the Forex world quite often.

In Forex trading “Loonie” stands for?

A) Australian dollar
B) US dollar
C) Euro
D) Canadian dollar

the wrong answers include a) Australian dollar, b) US dollar, and c) Euro.

The correct answer is D) Canadian dollar.

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Quizzes 33 to 36

Leverage defines?

A) The risk in a trading account
B) it has nothing to do with trading
C) the volatility of a currency pair
D) none of the above

Wrong answers include b) it has nothing to do trading. C) the volatility of a currency pair, D) none of the above.

The correct answer is A) the risk in a trading account. This is because Forex brokers allow you to trade with more money than you have in your account. While this can increase profits, it can also increase losses.

The bigger the spread?

A) The better for the trader
B) the better for the broker
C) the more attractive the currency pair is
D) the less attractive the currency pair is

The wrong answers include a) the better for the trader, and c) the more attractive the currency pair is. By having a larger spread, a currency pair is more difficult to make profits with.

The correct answers are b) the better for the broker, and d) the less attractive the currency pair is. This is because the broker typically makes its money by charging the spread, and of course the higher the spread the less likely the trader is to profit.

Scalping refers to?

A) Trading with a very short-term perspective
B) trading for a very small profit targets
C) trading without a plan
D) none of the above

Wrong answers include c) trading without a plan, and d) none of the above.

The correct answers include a) trading with a very short-term perspective, and b) trading for very small profit targets. Scalpers typically are in and out of the market quite rapidly, taking small pieces of the market with them.

A pending order shows the intention to?

A) Buy a market
B) sell a market
C) buy or sell at future price levels
D) none of the above

Wrong answers include a) buy a market, b) sell a market, and d) none of the above.

The correct answer is C) buy or sell at future price levels. A pending order simply means that you are looking to get into the market once certain conditions are met in the future.

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Quizzes 29 to 32

What is a major currency pair?

A) One that exist many years
B) one that has US dollar in it
C) one that is extremely volatile
D) none of the above

The wrong answers are A) one that exist many years, C) one that is extremely volatile, and D) none of the above.

The correct answer is B) one that has a US dollar in it. The major pairs in the Forex world include USD/CHF, USD/CAD, USD/JPY, EUR/USD, GBP/USD, AUD/USD, and some people even include the NZD/USD pair.

A demo account is?

A) A trading account to practice trading
B) a virtual account
C) an account designed to get familiar with Forex broker services
D) all of the above

The wrong answers include A) a trading account to practice trading, B) a virtual account, and C) an account designed to get familiar with Forex broker services.

The correct answer is D) all of the above. The demo account allows you to trade live conditions in the Forex markets, with real price feeds. This gives you a safe place to practice your strategies before committing real money to work.

In Forex trading, “BoE” means?

A) Bank of England
B) Bank of Egypt
C) Bank of Eritrea
D) none of the above

The wrong answers include B) Bank of Egypt, C) Bank of Eritrea, and D), none of the above.

The correct answer is A) Bank of England. The Bank of England is one of the world’s largest central banks, and therefore is referred to often.

The most popular type of chart is?

A) The line chart
B) the bar chart
C) the candlestick chart
D) none of the above

The wrong answers include A) the line chart, B) the bar chart, and D) none of the above.

the correct answer is C) the candlestick chart. In the Forex world, the candlestick chart has become the most popular charting method by far.

The post Quizzes 29 to 32 appeared first on The Diary of a Trader.

Quizzes 25 to 28

An oscillator is?

A) Placed at the bottom of the chart
B) showing overbought and oversold levels
C) showing divergences
D) all of the above

Wrong answers include A) placed at the bottom of the chart, B) showing overbought and oversold levels, and C) showing divergences.

The correct answer is D) all of the above. Oscillators are used for various reasons and in different trading systems, and can show any and all of the points mentioned previously.

In a trading account, what is more important?

A) The equity in the trading account
B) the balance of the trading account
C) the margin level
D) all of the above

The wrong answers include B) the balance of the account, C) the margin level, and D), all of the above.

The correct answer is A) the equity in the account. The equity in the accounts not only keeps you in the market, but gives you the cushion necessary to have losses. By being able to withstand losses, the trader can realize gains later down the road. One of the most detrimental factors in a trading account is low equity.

The world’s reserve currency is?

A) The US dollar
B) the Euro
C) the Australian dollar
D) the Great Britain pound

the wrong answers are B) the Euro, C) the Australian dollar, and D) the British pound.

The correct answer is A) the US dollar. This is because it is used in most major transactions worldwide, including commodities.

The most important central bank in the world is?

A) Bank of Japan
B) Bank of England
C) European Central Bank
D) Federal Reserve of the United States

the wrong answers include A) Bank of Japan, B) Bank of England, and C) the European Central Bank.

The correct answer is D), the Federal Reserve. The Federal Reserve controls the world’s currency, and therefore has an enormous amount of power, influencing world markets.

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Quizzes 53 to 56

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Quizzes 49 to 52

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Quizzes 45 to 48

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Quizzes 41 to 44

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Quizzes 37 to 40

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Quizzes 33 to 36

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Quizzes 29 to 32

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Quizzes 25 to 28

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Quizzes 21 to 24

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Quizzes 17 to 20

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Quizzes 14 to 17 Beginner

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Quizzes 13 to 16

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Quizzes 124 to 125

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Quizzes 120 to 123

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Quizzes 116 to 119

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Quizzes 112 to 115

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Quizzes 108 to 111

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Quizzes 104 to 107

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Quizzes 100 to 103

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Quizzes 14 to 17

A Death Cross forms when?

A) MA (50) is moving below the MA (200)
B) MA (50) is moving above the MA (200)
C) MA (50) is parallel with the MA (200)
D) None of the above

Wrong answers include B) MA (50) is moving above the MA (200), C) MA (50) is parallel with the MA (200), and D) None of the above.

The correct answer is A) MA (50) is moving below the MA (200)

The Bollinger Band indicator is?

A) A trend indicator
B) An oscillator
C) Both
D) None

Wrong answers include B) An oscillator, C) Both, and D) None

The correct answer is A) A trend indicator

The Bollinger Band indicator has?

A) Two lines
B) Three lines
C) Four lines
D) None of the above

Wrong answers include A) Two lines, C) Four lines, and D) None of the above

The correct answer is B) Three lines

The Ichimoku Kinko Hyo is?

A) A trend indicator
B) An oscillator
C) Both
D) None

Wrong answers include B) An oscillator, C) Both, and D) None

The correct answer is A) A trend indicator

The post Quizzes 14 to 17 appeared first on The Diary of a Trader.

Quizzes 13 to 16

Fundamental analysis is?

A) news trading.
B) Trading based upon macroeconomic differences.
C) Trading based upon different monetary policies.
D) None of the above.

The wrong answer is D) none of the above.

The correct answers are A) news trading, B) trading based upon macroeconomic differences, and C) trading based upon monetary policies. Fundamental analysis is taking the difference between 2 economies and trading in favor of one over the other based upon expectations.

Going “long” means?

A) buying a currency pair
B) selling a currency pair
C) buying and selling a currency pair
D) selling and buying a currency pair

The wrong answers are B) selling a currency pair, C) buying and selling a currency pair, and D), selling and buying a currency pair.

The correct answer is a) buying a currency pair. To go “long” a currency pair is to buy the first currency mentioned.

Bullish means?

A) Price will move to the upside
B) price will move to the downside
C) price will move in a range
D) none of the above

The wrong answers include B) price move to the downside, C) price will move in a range, and D), none of the above.

The correct answer is A) price will move to the upside. By being “bullish”, you are stating that you believe that the value of an asset will increase.

Going short on a currency pair means?

A) Selling it
B) buying it
C) selling and buying it
D) none of the above

The wrong answers include B) buying it, C) selling and buying it, and D), none of the above. “Shorting” a financial instrument is to sell it. This refers to the first currency in the currency pair.

The post Quizzes 13 to 16 appeared first on The Diary of a Trader.

Quizzes 124 to 125

According to Elliot Waves Theory, an impulsive move is?

A) A two-wave structure
B) A three-wave structure
C) A four-wave structure
D) A five-wave structure

Wrong answers include: A) A two-wave structure, B) A three-wave structure, and C) A four-wave structure.

The correct answer is D) a five-wave structure.

According to Elliot Waves Theory, a corrective wave is?

A) A two-wave structure
B) A three-wave structure
C) A four-wave structure
D) A five-wave structure

Wrong answers include: A) A two-wave structure, C) A four-wave structure, and D) A five-wave structure.

The correct answer is B) A three-wave structure.

The post Quizzes 124 to 125 appeared first on The Diary of a Trader.

Quizzes 120 to 123

In general, the most volatile trading session is?

A) The London session
B) The Asian session
C) The North American session
D) Volatility is equal

Wrong answers include: B) The Asian session, C) The North American session, and D) Volatility is equal.

The correct answer is A) The London session. Although market moving events can happen any time of day, the most consistent time for heavy volume is during London trading hours.

Swing trading means?

A) Positions are kept open for a longer time
B) Opening and closing positions as fast as possible
C) Opening and closing positions as slow as possible
D) None of the above

Wrong answers include: B) Opening and closing positions as fast as possible, C) Opening and closing positions as slow as possible, and D) None of the above.

The correct answer is A) Positions are kept open for a longer time.

When trading with Elliot Waves Theory, traders are?

A) Guessing
B) Counting waves
C) Forecasting future patterns based upon previous ones
D) None of the above

The wrong answers include: A) Guessing, and D) None of the above.

The correct answers are: B) Counting waves, and C) Forecasting future patterns based upon previous ones.

The Federal Reserve of the US meets?

A) Monthly
B) Every six weeks
C) Every three weeks
D) Every two months

The wrong answers include: A) Monthly, C) Every three weeks, and D) Every two months.

The correct answer is B) Every six weeks.

The post Quizzes 120 to 123 appeared first on The Diary of a Trader.

Quizzes 116 to 119

When the market is rolling over at the end of the trading day, liquidity is?

A) Normal
B) Thinner
C) Doesn’t matter for trading
D) None of the above

Wrong answers include A) Normal, C) It doesn’t matter for trading, and D) None of the above.

The correct answer is B) Thinner. For a short amount of time each day, liquidity shrinks.

When liquidity is thinner, spreads are?

A) Bigger
B) Smaller
C) The same
D) Irrelevant

Wrong answers include B) Smaller, C) The same, and D) Irrelevant.

The correct answer is A) Bigger.

Forex brokers can be?

A) Market makers
B) Non-Dealing Desks
C) ECN or STP
D) All of the above

Wrong answers include A) Market makers, B) Non-Dealing Desks, and C) ECN or STP.

The correct answer is D) All of the above. Brokers are structured in several different ways.

When trading the Forex market, a realistic approach is?

A) To get rich overnight
B) Easy money to be made
C) Grow your account over the long run
D) None of the above

Wrong answers include A) To get rich overnight, B) Easy money to be made, and D) None of the above.

The correct answer is B) Grow your account over the long run.

The post Quizzes 116 to 119 appeared first on The Diary of a Trader.

Quizzes 112 to 115

FOMC Minutes are published?

A) Three weeks after the previous meeting
B) One month after the previous meeting
C) One week after the previous meeting
D) Never

Wrong answers include B) One month after the previous meeting, C) One week after the previous meeting, and D) Never.

The correct answer is A) Three weeks after the previous meeting.

Is the European Central Bank meeting followed by a press conference?

A) No
B) Yes
C) Sometimes
D) They never hold a press conference

Wrong answers include A) No, C) Sometimes, and D) They never hold a press conference.

The correct answer is B) Yes. The ECB always has a press conference after the meeting.

A pennant is a?

A) Bullish pattern
B) Bearish pattern
C) Neutral pattern
D) None of the above

Wrong answers include B) Bearish pattern, C) Neutral pattern, and D) None of the above.

The correct answer is A) Bullish pattern.

The lower the spread of a currency pair?

A) The less liquid the pair is
B) The more liquid the pair is
C) It has no relevance for the currency pair
D) None of the above

Wrong answers include A) The less liquid the pair is, C) It has no relevance for the currency pair, and D) None of the above.

The correct answer is B) the more liquid the pair is.

The post Quizzes 112 to 115 appeared first on The Diary of a Trader.

Quizzes 108 to 111

A head and shoulders pattern is mandatory to form?

On the horizontal
On the vertical
On the diagonal
None of the above

Wrong answers include: A) On the horizontal, B) On the vertical, and C) On the diagonal.

The correct answer is D), None of the above.

Multiple support and resistance levels in the same place form?

Something irrelevant
A confluence area
A crowded chart
None of the above

Wrong answers include: A) Something irrelevant, B) A crowded chart, and D) None of the above.

The correct answer is B) A confluence area.

The European Central Bank is meeting?

Monthly
Every six weeks
Every two weeks
Every two months

Wrong answers include: A) Monthly, C) Every two weeks, and D) Every two months.

The correct answer is B) Every six weeks.

Reserve Bank of Australia is meeting?

Monthly
Every six weeks
Every two weeks
Every two months

Wrong answers include: B) Every six weeks, C) Every two weeks, and D) Every two months.

The correct answer is: A) Monthly. Most central banks around the world meet monthly.

The post Quizzes 108 to 111 appeared first on The Diary of a Trader.

Quizzes 104 to 107

According to the Elliot Wave Theory, how many types of waves exist?

A) Two
B) Three
C) Four
D) Five

Wrong answers include: B) Three, C) Four, and D) Five.

The correct answer is A) Two, impulsive and corrective.

If inflation in an economy is falling, it means the central bank?

A) Will cut rates
B) Will hike rates
C) Will keep rates steady
D) None of the above

Wrong answers include: B) Will hike rates, C) Will keep rates steady, and D) None of the above.

The correct answer is A) Will cut rates.

The head and shoulders pattern has?

A) Two shoulders
B) A neckline
C) A measured move
D) All of the above

Wrong answers include: A) Two shoulders, B) A neckline, and C) A measured move.

The correct answer is D) All of the above.

The trend lines in a wedge are?

A) Parallel
B) Contracting
C) Expanding
D) Irrelevant

Wrong answers include: A) Parallel, B) Expanding, and D) Irrelevant.

The correct answer is B) Contracting.

The post Quizzes 104 to 107 appeared first on The Diary of a Trader.

Quizzes 100 to 103

A head and shoulders pattern is?

A) A bullish pattern
B) A bearish pattern
C) Can be both a bullish and a bearish pattern
D) None of the above

Wrong answers include: A) bullish pattern, B) bearish pattern, and D), none of the above.

The correct answer is: C) can be both bullish or bearish. A ‘inverse’ (upside down) head and shoulders is a very bullish sign, while the traditional head and shoulders is bearish.

A falling wedge is?

A) A bullish pattern
B) A bearish pattern
C) Be both bullish and bearish
D) None of the above

The wrong answers include: B) bearish pattern, C) Be both bullish and bearish, and D) none of the above.

The correct answer is: A) bullish pattern.

When reading the economic calendar, what data is more important?

A) The forecasted one
B) The actual one
C) The previous one
D) All of the above

Wrong answers include: A) The forecasted one, B) The previous one, and D) All of the above.

The correct answer is B): The actual one. The announcement will give traders an idea of where an economy is going, therefore offering a new bit of fundamental analysis.

When a bullish flag breaks, the price is moving?

A) To the upside
B) To the downside
C) Not moving
D) None of the above

The wrong answers include: B) To the downside, C) Not moving, and D) none of the above.

The correct answer is: A) To the upside.

The post Quizzes 100 to 103 appeared first on The Diary of a Trader.