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

Short Answer Questions

1. What happens to Livingston after his dealings with Percy Thomas?

2. What does an operator tell people when cornering a market?

3. What does Livingston say gives a trader the sense of what to do?

4. What does Livingston notice about the price of Tropical Trading stock?

5. Under what condition does David Williamson offer Livingston a stake?

Short Essay Questions

1. What does Jim Barnes ask of Livingston? How was Consolidated Stove formed?

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

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

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

5. How does Livingston feel about hunches?

6. How does Livingston feel about tips and to what does he attribute his success?

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

8. How does a trader test a stock?

9. Sum up what Livingston says about cornering the market.

10. What does Livingston say about broker letters?

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 is flat broke and becomes ill. He goes to Chicago to recover. He wonders how he made so many mistakes. He goes back to New York.

1. What do you think the typical person would do if she/he were in Livingston's position?

2. Why do you think Livingston has continued to make mistakes in his trading? Use examples from the book to support your answer.

3. Given that Livingston is flat broke yet again, still he returns to New York. Why do you think Livingston keeps trying?

Essay Topic 3

The young Livingston is fascinated by patterns in the tape and has an excellent memory for numbers. He is able to remember the patterns various stocks normally exhibit well enough to predict their behavior or notice if they act strangely. He records his predictions and compares them to the actual performance of the stocks. Livingston trusts his observations more than tips from others.

1. What would you say about Livingston as a person based on the above paragraph?

2. Livingston is 15-years-old when the book opens. Describe the characteristics you see in Livingston that you would consider typical for a 15 year old and the ones you consider more adult like.

3. Livingston from the brief description above seems like a very organized, possibly even obsessive individual. Discuss the ways you believe this type of personality might do well as a stock broker.

(see the answer keys)

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