Financial Math: Getting Trading Ideas

What is the first step to take before choosing your first stock according to the text?

• Decide how much cash to invest in each symbol

• Pick stocks with high growth potential

• Decide what your goals are for your portfolio

• Read a bunch of technical analysis

According to the text, riskier stocks are ones that:

• Have a stable revenue over time

• Are old, established businesses

• Have a lot of price movement

• Have been recently IPO'd, regardless of other factors

What does diversifying with a "position limit" mean?

• Investing all your cash in very risky assets

• Only investing a certain percentage of your cash in any single stock

• Establishing the minimum number of securities you need

• Choosing stocks only from the biotech companies

What is the "Invest in what you know" strategy?

• Buying stocks based on technical analysis

• Investing in a mix of different strategies

• Starting with stocks that you are familiar with

• Handpicking stock symbols using a trading strategy

Which of the following is NOT one of the questions suggested to ask yourself before investing in a company according to the text?

• Are they opening new stores recently?

• Are many people using their products?

• Does the company have a positive news outlook?

• Is the company's stock price currently undervalued?

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What is the primary tool mentioned for handpicking stocks in the 'Earnings Strategy' section?

• Financial reports

• Earnings calendar

• Stock price charts

• News articles

According to the text, what is important to do once you have found your stocks using the Earnings Strategy?

• Immediately sell the stocks

• Analyze them and back-up your assumptions about market reactions

• Wait for the stock prices to drop

• Share the information with friends

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What is the example given of a well-executed trade based on the earnings' expectations?

• Apple Inc.

• Google LLC

• NVDA

• Amazon.com, Inc.

On what date did NVDA's stock price soar as mentioned in the example?

• 7th of June

• 1st of May

• 15th of July

• 10th of August

Tags

CCSS.HSF.IF.B.4

What can you invest in if you are unsure which specific stock to select?

• Mutual funds only

• ETFs and market indices

• Bonds

• Commodities