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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. When Livingston is looking at the price of Tropical Trading what is the market doing?

2. What does Livingston say a trader needs to make a good decision?

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

4. What has the market done about charlatans since Livingston has been trading?

5. What does Imperial Steel give Livingston as compensation?

Short Essay Questions

1. What does Livingston do to keep from being broke again?

2. What does Livingston say about forces that can cause plans to go wrong?

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

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

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

6. How does a trader test a stock?

7. What is one of the primary tools to manipulate a stock?

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

9. What does Livingston do about all his debt?

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

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?

Essay Topic 3

As soon as he has most of the cotton, the price begins to rapidly rise and he makes a great deal of paper profit. The problem now is to convert that profit to cash, because when one has most of the market, as soon as one starts selling it the price begins to drop.

1. What do you think is meant by the term "paper profit" in the above sentence? Use examples from the book to support your answer.

2. Why do you think the price of a stock starts to drop when the stock is being sold? Use examples from the book to support your answer.

3. Would it be possible that someone could be very wealthy on paper but not have enough money to buy a television with cash? Why or why not?

(see the answer keys)

This section contains 1,029 words (approx. 4 pages at 300 words per page) View a FREE sample