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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. How does Livingston feel about selling stocks on a payment plan and stock splits?

2. What mistake was made with Consolidated Stove's initial public offering?

3. When does Livingston hate losing money the most?

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

5. Why is Livingston frustrated when he leaves Williamson's?

Short Essay Questions

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

2. What does Livingston begin to do for a living?

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

4. How does Livingston feel about hunches?

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

6. What does Livingston do about all his debt?

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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?

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

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?

(see the answer keys)

This section contains 1,069 words (approx. 4 pages at 300 words per page) View a FREE sample