View a FREE sample

This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Why does Livingston say traders are often vilified in the press and by other traders?

2. What does one have to do with profit on paper?

3. Why does Imperial Steel hire Livingston?

4. How does Livingston feel about selling stocks on a payment plan and stock splits?

5. What does Livingston suggest is the reason for urges?

Short Essay Questions

1. What does Livingston do when he returns to New York?

2. What happens to Livingston after he follows Percy's advice?

3. What does Livingston say about the press and insider trading?

4. Is Livingston asked for tips? What does he say?

5. Why were the three main stock holders of Consolidated Stove angry at Livingston?

6. What does Livingston do when insiders in Tropical Trading try to knock him out of the market?

7. How does a trader test a stock?

8. What does Livingston say when people say a stock drops because someone sells it?

9. What happens when Livingston starts buying up what Imperial Steel stock is on the market.

10. What does Livingston notice about the price of Tropical Trading and what does he do about it?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Having patience and waiting until the right moment is an important aspect of successful trading.

1. Explain, using examples from the book, what you think is meant by this statement.

2. Discuss two situations in your own life that requires patience and good timing.

3. Do you think Livingston's advice could be used in situations other than trading on Wall Street? Why or why not?

Essay Topic 2

Livingston discusses the patterns various stocks show and how charts can be kept of these patterns and compared to market trends. By applying certain rules to the patterns, traders can decide if it is a good time to buy or sell a particular stock. Only the best traders make money with this approach.

1. Why does Livingston say only the best traders make money by using the patterns? Use examples from the book to support your answer.

2. Discuss several other situations in life where studying patterns are the best way to understand a situation.

3. Does this statement of Livingston's seem too simplistic, considering how few people actually make money in the stock market? Why or why not?

Essay Topic 3

Livingston says the important thing is to have a general strategy, stick to it, and use good information.

1. Why do you think it is important to have a general strategy in trading stocks? Give an example from the book.

2. Do you think it is difficult to stick to a plan when the plan is failing? Why or why not?

3. How difficult is it to get good information today? Do you believe what you read on the Internet? Why or why not?

(see the answer keys)

This section contains 1,122 words (approx. 4 pages at 300 words per page) View a FREE sample