Question 27—Grading Buys and Sells

Answer 2 Selection “The closer you sell to the low of the bar, the better your grade” is incorrect.
You want to buy as near the low of the bar and sell as near the high of the bar as possible. Buying in the top quarter or selling in the bottom quarter of the daily bar is a loser’s game; buying below or selling above midpoint is very good, while buying in the bottom quarter or selling in the upper quarter of the daily bar gives you an excellent grade.

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.