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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 does he think his debts are doing to his trading?

2. How many people held most of the stock in Consolidated Stove?

3. What does Livingston do to retaliate against the insiders?

4. What does Livingston do to prevent being broke again?

5. What does Livingston warn about in the beginning of Chapter XV?

Short Essay Questions

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

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

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

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

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

6. What does Livingston warn about various conditions that affect the market?

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

8. What does Livingston say about broker letters?

9. How does Livingston feel about hunches?

10. Why does Imperial Steel hire Livingston and why do they need him?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Livingston warns there are some things no speculator can guard against. No trader can account for all the factors that affect a trade.

1. Given the uncertainty in the numerous factors involved in stock trading why do you think people do it?

2. What other careers have such uncertainty to them? Describe in detail why.

3. Do you think life is better uncertain or not? Why?

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

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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