Which of the following may be responsible for the persistence of a trend?I. Contrarianism.II. Hindsight bias.III. Ego defensive attitudes.IV. Representativeness bias.
A. Only I, II, and III are correct.
B. Only II and III are correct.
C. Only II, III, and IV are correct.
D. All are correct.
查看答案
Select the most probable statement about consolidations.
A. Fear tends to diminish as the consolidation develops.
B. As the consolidation develops, the accumulation of stoploss orders above and below the two barrier zones creates an increasingly trend-promoting scenario.
C. Traders tend to loosen stoplosses as the consolidation unfolds.
D. Volume increases gradually during a consolidation, climaxing at the breakout.
Select the most accurate statement(s) about market tops.
A. It is never accompanied by irrational exuberance.
B. Cognitive dissonance begins to surface and increase during the early stages of a top reversal.
C. Fear is at its greatest during a market top.
D. Contrarians are mostly on the buy side.
When traders experience cognitive dissonance, they will usually attempt to reduce their discomfort by:I. Selectively exposing themselves only to information that conforms or agrees with their current view of the markets (selective exposure bias).II. Being ego defensive and investing even more as the trend moves adversely against their positions (sunk cost bias).III. Ignoring or downplaying the problem (compartmentalization and loss aversion biases).IV. Accepting that they are responsible for their own mistakes.
A. Only I, II, and III are correct.
B. Only II and III are correct.
C. Only II, III, and IV are correct.
D. All are correct.
Generally speaking, behavioral phenomena tend to be more reflective of the markets when:I. More traders react in a rational manner.II. There is less automated or program trading in the markets.III. There is less market manipulation by the strong hands.IV. More traders react in an emotional manner.
A. Only I, II, and III are correct.
B. Only I is correct.
C. Only II, III, and IV are correct.
D. All are correct.