Big Bucks or Bust: Online Trading Academy quiz

Staff

Fact or Fiction: The Online Trading Academy was founded by Donald Trump.

The Online Trading Academy was actually founded by Eyal Shahar, a former diamond importer.

The academy holds classes in actual classrooms, not just online.

Despite its name, the Online Trading Academy has brick-and-mortar buildings with classrooms.

Founder Eyal Shahar got the idea for the Online Trading Academy because of lessons he gave to traders investing his own money.

Shahar hired a team of traders to invest his personal fortune. At the end of each day, the traders would gather and share what they did right and what they did wrong -- lessons that eventually formed the foundation of the curriculum for the Online Trading Academy's introductory course.

The Online Trading Academy has locations only in the United States.

There are locations around the world, including Canada, the United Kingdom and India.

A buy-and-hold investment strategy is known as "passive."

It is considered passive because investors who employ a buy-and-hold investment approach hold onto financial instruments like mutual funds or stocks for years, sometimes decades, and don't trade with any frequency.

Day traders hold securities in their portfolio overnight.

By definition, day traders close out all of their positions at the end of a trading day.

Day trading is the only active investment style.

Day trading is just one of many active investment styles, which also includes scalping, and swing and position trading.

Day trading became popular in the 1920s.

Widespread Internet access and the stock market boom of the late 1990s caused an increase in day trading.

Active investors believe it is possible to anticipate the movement of financial markets.

Traders believe a host of indicators can help predict whether securities will rise or fall in value, giving investors an opportunity to profit from that movement.

There are very few resources offering tips and strategies for active trading.

There is an avalanche of information about how to trade profitably, including places like the Online Trading Academy, as well as books, newsletters, TV programs and radio shows.

Most Online Trading Academy students are women in their 30s.

About 70 percent of the students are men in their 60s.

The Online Trading Academy targets its advertising to venues appealing to men, like football games.

The company advertises where it can find people who want to improve their trading, like CNBC and Bloomberg Radio.

The Online Trading Academy teaches techniques only applicable in short-term trading, like day-trading.

The approach Online Trading Academy instructors teach is meant to be useful, no matter the time horizon or asset class.

Most students at the Online Trading Academy take the Professional Trader Course first.

Meant to provide the foundation for profitable trading, the Professional Trader Course is seven days in length and teaches people how to identify "market turning points" and how to use the TradeStation Platform.

Online Trading Academy courses are inexpensive.

Courses cost around $1,000 per day.

The Professional Trader Course is all lectures.

The first two days of the course, usually on a weekend, are mostly lectures while Monday through Friday is spent doing real trades using Online Trading Academy accounts.

Online Trading Academy graduates earn a degree that can help them secure jobs as stock brokers.

Graduates simply earn a certificate of completion.

Online Trading Academy instructors must prove a track record of profitable trading.

At a minimum, instructors must document at least two years of profitable trading.

Individual investors on aggregate do worse performance-wise than benchmark indices.

According to a recent study, low-cost index funds fare much better than most individual investors.

The Securities and Exchange Commission has issued warnings about the high risks of day trading.

The SEC published a booklet titled, "Day Trading: Your Dollars at Risk," which warns that pursuing this form of investing can lead to "devastating losses."

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About This Quiz

For many people, a hands-off buy-and-hold approach to investing is the best way because it doesn't require much time or expertise. But many others take a more active approach, which can entail a lot of time, effort and risk. The Online Trading Academy is one of many places budding traders can go to learn how to be an active investor. See if you know a thing or two about the Online Trading Academy and active investing.

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