Stocks & Commodities V. 22:10 (52-55): Risk/Reward In Trading by Don Bright

Stocks & Commodities V. 22:10 (52-55): Risk/Reward In Trading by Don Bright
Item# \V22\C10\217BRIG.pdf
$2.95
Availability: In Stock

Product Description

Stocks & Commodities V. 22:10 (52-55): Risk/Reward In Trading by Don Bright

Every investor and trader has been taught to be fearful of risk in the marketplace. That makes sense, right? You have to be cautious with your money, right? You have to limit losses, right? Well, maybe not.

As in most other things, risk in the marketplace comes with a counterpart: reward. These rewards can be financial, physical, mental, or even emotional. We all risk so many things every day, from the moment we get out of bed in the morning, head to work in traffic, engage our peers in conversation, and otherwise negotiate our way through day-to-day life. Even matters of the heart involve risk and reward; how many people are too afraid of rejection to pursue a satisfying relationship? For now, though, letís just take a look at risk and reward in the investment and trading world.

APPLYING STOP-LOSSES

So many of my learned peers support the theory of tight stop-loss methods when investing or trading. This seems to make perfect sense on the surface, but look a bit deeper. If you buy 100 shares of stock at $50, and hope to get an annual return on investment (ROI) of 12%, the stock would have to rise by $6 annually (assuming there were no dividends paid). To protect yourself from ruin, you can enter an initial stop-loss sell order to trigger at a predetermined price. How much should you limit your loss? How does this individual stock movement affect your overall portfolio?




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order