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Questions and Answers
What is the primary concept behind the "Buy and Hold" strategy?
What is the primary concept behind the "Buy and Hold" strategy?
- Buying a security and holding it for a long period, regardless of market fluctuations (correct)
- Buying and selling within the same trading day to capture quick profits
- Investing a fixed amount at regular intervals to average out the cost
- Capturing short-term gains by taking advantage of market volatility
What is the benefit of Dollar-Cost Averaging?
What is the benefit of Dollar-Cost Averaging?
- Realizing profits from small price movements in the market consistently
- Reducing the impact of market volatility and lowering the average cost per share over time (correct)
- Capturing medium-term gains by strategically entering and exiting positions
- Identifying strong price movements and making quick trading decisions accordingly
Which trading strategy involves making multiple trades within a single trading day?
Which trading strategy involves making multiple trades within a single trading day?
- Swing Trading
- Position Trading
- Day Trading (correct)
- Momentum Trading
What is the goal of Breakout Trading?
What is the goal of Breakout Trading?
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What is Reversal Trading?
What is Reversal Trading?
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What does the Moving Average Crossover strategy involve?
What does the Moving Average Crossover strategy involve?
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What is Algorithmic Trading?
What is Algorithmic Trading?
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What does Arbitrage involve?
What does Arbitrage involve?
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What is the purpose of Hedging?
What is the purpose of Hedging?
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Which advanced strategy involves using options contracts to speculate on price movements or hedge against other positions?
Which advanced strategy involves using options contracts to speculate on price movements or hedge against other positions?
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