Welcome to this discussion thread. Feel free to ask questions or discuss things related to this section.
I believe the following question is incorrect.
Question 1. What is a limit order? - An instruction to buy a security at or above a specified price.
Taken from sec.gov -
“A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.”
Great, thanks I will correct.
Same with the second question, i just made it right now, u switched the 2 answers.
Order book quiz question 3:
How can you use the Orderbook as a trader?
1 To place orders on different price levels
2 To determine the closing price of a security
3 To see the current long term trend
4 To identify buying/selling pressure and determine support/resistance levels
It says coorect answer is the 4 but i would say its 1?
Well, I wouldn’t say 1 is correct. But it might be a tricky question.
The order book is not used to place orders. It’s a visual representation of current orders, which you can use in your own analysis.
Hello Filip, can you provide me the link were I can read about the short positioning.
Sorry about that. Here is the link: https://www.investopedia.com/university/shortselling/shortselling1.asp
I have added it to the lecture now as well.
I chose the same as @wat3r Although I see the correctness of number 4, my instant reaction was for number 1. Actually I’d say a combo of both it’s the correct answer IMO. The question “How can you use the Orderbook as a trader?” allows for interpretation, using the orderbook as a source of information and place orders at different levels (1) by identifying buy and sell “walls” (4).
@filip what crypto exchange has stop loss and take profit orders? I did not see it on Binance, for example.
They might call it different things sometime. But here is a link where binance explains how to do it on their platform: https://www.binance.vision/tutorials/what-is-a-stop-limit-order
Thanks, will adjust. Thank you for letting us know
Is it true that most TA people lose money as traders or not?
It looks like a short position is better used by very experienced traders who have assets to back shorts. Is that what happen you think in middle of March when everything tumbled downward, long position massive selling?
Why do traders make stop order if it is buying at less favorable price? Is it to get filled on a larger order and this is the way to fragment one large order in couple smaller ones?