Question 57—“The Iron Triangle”

Answer
1. B
2. A
3. C
Stops are set on the basis of chart analysis. Your money management rules will give you the maximum amount of dollars you may risk in this trade, although you may want to risk less. Dividing this number by the dollar risk per share gives you the size of the trade.

Get The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.