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. What does Livingston conclude when Union Pacific announces a dividend?

2. Why does it take Livingston so long to understand how to trade?

3. What does Livingston decide to buy next?

4. Why does Livingston want to sell Union Pacific?

5. What does Livingston say financial news in the papers is?

Short Essay Questions

1. What happens a few days after he sells Union Pacific and how did that help Livingston?

2. How did Livingston make a lot of money in cotton?

3. What does Livingston say about trading every day?

4. Why does Livingston take so long to figure out the stock market and what happens then?

5. What's the difference between trading on Wall Street and bucket shops and how does it affect Livingston?

6. What does Livingston say again about the bucket shops and Wall Street?

7. Why is Livingston still losing money on Wall Street?

8. What does Livingston say makes a successful stock trader?

9. What kind of hunch does Livingston talk about in Chapter VI?

10. Why does Livingston say patterns can be used and who uses them well?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Livingston is convinced his own knowledge, ideas, and hunches serve him better than any other other sources of information. He discusses the importance of being objective and neutral and not preferring a bear or bull market, but trading based on what conditions actually are.

1. How do you think Livingston being convinced about his ideas being better than other people's might help and harm him in trading? Use examples from the book to support your answer.

2. Why do you think a trader has to be objective? Use examples from the book to support your answer.

3. Discuss what you see as the conflict between playing hunches and being objective.

Essay Topic 2

Livingston gets a strong hunch and cannot shake the urge to sell Union Pacific stock.

1. Do you think it's unwise to sell stock based on a hunch? Why or why not?

2. Just because Livingston's hunch worked out this time do you think he should continue to use hunches? Why or why not?

3. Given the fact that more people have lost money on a hunch then made it, do you think Livingston should have written about hunches? Why or why not?

Essay Topic 3

He considers commodities down to earth and less prone to complex maneuvering than stocks. They are affected by supply and demand and conditions that don't affect stock as much.

1. Why do you think Livingston thinks the above statement is true? Use examples from the book to support your answer.

2. Having read the entire book do you think trading in commodities would be easier than in stock? Why or why not?

3. Given the differences in transportation and the wider global market do you think commodity trading has become more complex? Why or why not?

(see the answer keys)

This section contains 1,042 words (approx. 4 pages at 300 words per page) View a FREE sample