The basics every day trader needs before the first trade: when the market is open, what each order type does, what the spread costs and how short selling works.
Test yourself
One question from each lesson in this topic. Pick an answer to see why, then open the lesson if you want to review it.
Question 1 of 14
A company reports earnings a few minutes after the regular session closes. In the drawing, which block is the first one where its stock can trade on the news?
Question 2 of 14
In the drawing, what triggers the long after the open?
Question 3 of 14
It is 6:00 p.m. ET and you want to sell 100 shares after an earnings report. Which order ticket can fill after hours, at a price you control?
Question 4 of 14
In the drawing, the day opens with the opening auction. A stock closed yesterday at SAR 40.00 and the indicative opening price shows SAR 40.60. During the auction you place a limit buy at SAR 40.50. What happens?
Question 5 of 14
The drawing shows a pre-trade checklist with its boxes ticked before the order goes in. Say one box cannot be ticked, because the 5-minute candle is still forming. What does the guide say to do?
Question 6 of 14
In the drawing, which order buys only if price rises to it?
Question 7 of 14
In the drawing, which quote is cheaper to trade if you buy at market and sell straight back?
Question 8 of 14
In the drawing, the short is opened at 50 with a stop at 53. What does the dotted stop line do?
Question 9 of 14
One bar in the drawing reads days to cover 6. What does that number mean?
Question 10 of 14
In the drawing, price trends above a dashed VWAP line that slopes up, pulls back to it and closes back above. According to the SPY guide, which side does that favor?
Question 11 of 14
In the drawing, small candles show which way the 15-minute, 30-minute and 1-hour frames lean beside the 5-minute chart. Suppose the 1-hour chart leans up and the 15-minute chart leans down. What does the QQQ routine say?
Question 12 of 14
The drawing shows a squeeze: price coils in a box, then a candle closes above it on a volume spike. In this guide's TSLA example the box tops out at $300.00, the 5-minute ATR is $1.60 and the next resistance is $304.20. A candle closes at $302.60. What does the guide do?
Question 13 of 14
The drawing shows levels as shaded zones, not single lines. Why does the NVDA guide treat each level as a zone a few cents wide?
Question 14 of 14
In the drawing, the thin lines above and below each candle body are wicks. What does a long upper wick show?
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