Question

How can you identify market tops?

Noticing market liquidation (stock selling) for 1-3 weeks

Tracking stock activity for 4-5 days and spotting a market downturn

Paying attention to the volume and average of the Dow 30, NASDAQ Composite, and S&P 500

All of the above

How should you view your stock purchases?

You need stocks in retirement, so be patient

Stocks award those that remain loyal

Stocks are a business, so sell without remorse and move on

Stocks are for fun, so enjoy yourself

What actions will help you stick to your exit strategy?

Letting someone else make the decisions for you

Initiating Stop-Loss Orders

Not selling stocks - ever - like Warren Buffett does

Playing Devil's Advocate when making decisions

What are some considerations that should dictate your exit strategy?

How long do you plan to own the security

The level of risk you are comfortable handling

Your target exit price point

Your target exit price point

What are Trailing Stop Orders?

An order that falls behind the actions on the stock market

An order that sets a distance between the market price and a stop order

An immediate order to sell a security

An order that comes with a set of conditions

Answer 1

1. Market tops are the most difficult thing to guess in the market, so it can be done through a better forecast involvement into the market like continuously noticing market liquidation and volumes on the various indexes along with tracking the stock activities.

So, all these methods which has been specified can be helpful in determination of a market top but still it is not that precise to guess the market top.

Correct answer is option (d) all of the above