12.2 Your Trading Strategy and Scalping – QUIZ

1. What are the main components of a trading strategy? *

Your choice of broker

Entry ,stop-loss and profit-target rules

Choosing what to eat for lunch the day you trade

Choosing how to spend your profits

2. Is risk/reward important if you are a scalper? *

No,Risk / Rewardis never important; only think about the rewards and stay positive

No,Risk/Rewardis only for longer-term traders

Yes,Risk/Rewardalways matters as part of your risk control

Sometimes,it depends on the profit-target

3. Do you need to process your trading rules in less time or more time if you are a scalper? *

Itdoesn’tmatter: Scalping doesn’taffecttheamountoftimeyouneedtothinkaboutatrade

Moretime: Scalping is inherentlymorecomplex

Moretime: Scalping is forprofessionalsandprofessionalsspendmoretimeontheirdecisions

Less-time;Scalping requires fast erentry and exit from a trade

4. What’s the best way to find out if a trading strategy will work on small timeframes for scalping? *

None of the above will help you find out if a trading strategy on small time frames

Start Scalping immediately with your usual amount of risk capital

Practice it with live capital but without stop-losses to help your profit-targets get hit

Practice it first on a demo account

5. What are the consequences of trading rules that are very complex for a scalper? *

More profit ability because the best trading strategies are more complex

Missing entries and exits because Scalping requires quick decision making

There are no consequences because you can skip rules if you are a Scalper

There are no consequences because Scalping requires more complexity

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