Trading Jobs Day Trading Strategy 3

Question 1

What is scalping in day trading?

Accepted Answer

Taking many small, quick trades to capture tiny price moves

Answer

Holding positions for several days

Answer

Investing in long-term index funds

Answer

Trading only at the closing bell

Question 2

Why is a high win rate especially important for scalpers?

Accepted Answer

Because their small profit targets leave little room for losses

Answer

Because they hold trades overnight

Answer

Because they ignore commissions

Answer

Because they use only weekly charts

Question 3

What is a key requirement for effective scalping?

Accepted Answer

High liquidity and tight spreads

Answer

Low trading volume

Answer

Wide bid-ask spreads

Answer

Markets that are closed

Question 4

In a reversal (counter-trend) strategy, traders attempt to do what?

Accepted Answer

Enter as an extended move exhausts and changes direction

Answer

Always trade with the dominant trend

Answer

Hold positions for weeks

Answer

Buy only at the opening gap

Question 5

Which candlestick pattern often signals a potential bullish reversal at support?

Accepted Answer

Hammer

Answer

Shooting star

Answer

Bearish engulfing at resistance

Answer

Long red marubozu

Question 6

What role does the VWAP (Volume Weighted Average Price) play in intraday strategy?

Accepted Answer

It acts as a dynamic support/resistance and fair-value benchmark

Answer

It predicts next year's earnings

Answer

It replaces the need for stop losses

Answer

It measures dividend payouts

Question 7

Trading above VWAP generally suggests what intraday bias?

Accepted Answer

Bullish bias, with buyers in control

Answer

Bearish bias, with sellers in control

Answer

No bias at all

Answer

A guaranteed reversal