Hybrid Trades Quiz 2

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Hybrid Trades Knowledge Check

Test your understanding of hybrid trading strategies with our engaging quiz! Perfect for traders looking to enhance their skills or just get a deeper understanding of market dynamics.

Learn about sentiment indicators and liquidity premiums
Explore the impact of fear and greed on trading
Assess the fundamentals of successful trades

11 Questions3 MinutesCreated by TradingFalcon782

Dumb money is best described by which of the following?

Robinhood traders

Traders that open new positions earlier in the day and open less than 10 contracts. They get very bullish after a market rally, and bearish after a market fall.

Traders that start new positions at the end of the day and open more than 10 contracts. They tend to be wrong during the "meat" of a rally.

Traders that have minimal experience and tend to chase trends.

When the market is doing well and is healthy which is most true?

Individual stocks become the focus and we tend to see little need to trade ETFs. It is at these points when the Liquidity Premiums shrink, and market peaks often soon follow.

When the market is healthy, market participants gravitate toward the vehicles that provide them the most liquidity. We define liquidity simply as an instrument that allows the investor to get in and out quickly with minimal slippage.

We tend to see volume become heavy in these ETFs

All the above

When few sentiment indicators show excessive optimism or pessimism the direction of the market is most likely to _________.

Go sideways

Go up

Go down

Become more unpredictable

If liquidity premium is rising on the QQQ what does it mostly mean?

Gamma is low, which best describes the price action that will follow?

Price action will be tight and sticky

Price action will be loose

Prices will stay the same due to zero gamma

Market makers are short

Fear and greed is a _________?

Contrarian indicator

Market maker tool

Something options traders should ignore

Political thing

In order for a major pull back on SPX which of the following would you typically see?

Hedge funds net long

Hedge funds neutral

Hedge funds net short

None of the above

What are the fundamentals of a good trade?

Following sentiment, understanding what a sweep is, picking your trades based on what you can make and not lose.

Proper preparation, hard work, patience, a detailed trading plan for every trade, discipline, communication, replaying your important trades.

Using TA to find a trade that offers a good risk reward setup.

Buy lottos that can print money.

None of the above.

When it comes to the market the strongest impact comes from _______?

Technicals

Options players

News

Earnings

In extreme bullish scenarios where puts are coming off at the bid which is MOST true?

Players are taking profits

Short positions are being closed out

It is writing on the put side

Dealers are replacing puts with short positions

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