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

Question 70—Selling “Engine Noise”

Answer 3 Selection “Selling ‘engine noise’ is especially well suited for beginning traders” is incorrect.

While selling at profit targets or using protective stops works for traders at all levels, selling in response to “engine noise” requires a much greater level of experience. There is a very real risk that a trader, especially an inexperienced one, will sell too soon out of boredom or anxiety.