by alex
Day trading requires quick thinking, sharp analytical skills, and a deep understanding of market movements. This quiz will challenge your knowledge on the strategies, tools, and terminologies that are essential for successful day trading. Ready to prove your trading prowess? Let’s get started!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Day Trading Quiz Questions Overview
1. What is the primary goal of day trading?
To hold stocks for long-term growth
To profit from short-term price movements
To collect dividends over time
To diversify a long-term investment portfolio
2. Which of the following is a popular technical indicator used in day trading?
Price-to-Earnings Ratio
Moving Average Convergence Divergence (MACD)
Dividend Yield
Debt-to-Equity Ratio
3. What does the term ‘scalping’ refer to in day trading?
Holding positions overnight
Making numerous small trades to capture small price changes
Investing in undervalued stocks for long-term gains
Buying and holding stocks for dividends
4. Which of the following is a risk management technique commonly used by day traders?
Dollar-cost averaging
Stop-loss orders
Buy and hold strategy
Reinvesting dividends
5. What is the ‘bid-ask spread’?
The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept
The fee charged by brokers for executing trades
The range of prices at which a stock has traded over a specific period
The difference between the opening and closing prices of a stock
6. Which of the following is NOT a characteristic of day trading?
Holding positions overnight
High frequency of trades
Focus on short-term price movements
Use of technical analysis
7. What is ‘margin trading’?
Trading with borrowed funds to increase potential returns
Trading only with the capital you own
Investing in margin accounts for long-term growth
Using margin calls to buy more stocks
8. Which market order type is executed immediately at the current market price?
Limit order
Stop order
Market order
Trailing stop order
9. What does ‘liquidity’ refer to in the context of day trading?
The ease with which an asset can be converted into cash
The total value of all outstanding shares of a company
The interest rate charged on margin loans
The volatility of a stock’s price
10. Which of the following is a common mistake made by novice day traders?
Using stop-loss orders
Diversifying their portfolio
Overtrading
Sticking to a trading plan
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
