The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition

Question 63—Trade Duration

Answer 4 Selection “Long-term position trades provide the best learning experience” is incorrect.

Time is a hugely important factor in trading. The more time a market has, the farther it can move, increasing both the profit opportunities and the risk of an adverse move. A trader with a longer-term orientation can stop to think, unlike a day-trader who must react almost automatically. The best way to learn to trade is by making many small trades; the slower pace of long-term trading does not provide as good a learning experience as shorter-term swing trading.