Hybrid Trades Quiz 2

A vibrant and dynamic illustration depicting hybrid trading concepts, showing a trader analyzing market trends, with charts and indicators in the background, conveying a sense of energy and knowledge.

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?
Traders are panicking
IV is expensive
Biden is on the podium
Traders are picking individual stocks mostly
None of the above
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
When you front run a move you are less likely to be _______.
Wrong
Correct
In the money
Out of the money
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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