Courses 1Lesson 1

5.

What do producers do?

a.

They produce or process the commodity that is being traded.

b.

They produce the final manufacturing of the commodity.

c.

They produce the contracts to be traded.

d.

They oversee the production market deliveries.

---

C1L1-18

© 2000 MBH Commodity Advisors, Inc.

6.

How should you get your starting capital to begin trading?

a.

Borrow it from the bank or from a member of your family.

b.

Take a second mortgage on your house.

c.

Borrow it from your children’s college fund.

d.

Use only extra money that you have on hand and will not miss if you lose it.

7.

When deciding how much you risk on each trade I told you that those who belong to the

“money management school” will tell you to take a per-trade risk based strictly on

money management while those who believe in the “systems approach” claim that each

trade is unique and that it is not possible to determine a prior rule for dollar risk.  What

position did I suggest you follow?

a.

The middle-of-the-road approach is usually safest.

b.

Align yourself with one or the other extreme but be consistent.

c.

Ask a friend or associate what they do and do the same.

d.

Take a percentage of what you feel the profit potential could be and use that.

8.

What is the amount of profits I feel you should remove from your account for every

winning trade that you make?

a.

50 to 75%

b.

None

c.

10 to 25%

d.

2 to 3%

9.

If you decide to become a day trader what kind of data should you have?

a.

Information that you can glean from reading the daily papers.

b.

Up-to-date, tick-by-tick, accurate and reliable data.

c.

A friend or associate who trades also that you can compare notes with.

d.

Only the history of past trades is needed.

10.

When you use leverage, what is the typical percentage of the total value that a contract

can be bought or sold for?

a.

10 to 15%

b.

5 to 7%

c.

1 to 3%

d.

20 to 25%

When you have completed the questions in this quiz, email your answers to:  [e-mail]