Sentences with phrase «because risk and reward»

Because risk and reward are related, an aggressive investor can also expect returns that are, on average and over time, higher than those of someone with a moderate or conservative portfolio.

Not exact matches

Then there is risk aversion due to the fact that «our professional and personal pride is tied up in being right» and because «employees are rewarded for good decisions and penalized for failures.»

Cramer likes the Chandler, Ariz. - based semiconductor because it has an attractive risk - reward and pays a high dividend yield.

And they get rewarded because they take risk.

When you begin to view each trade setup as just another execution of your trading edge and effectively implement position sizing and risk to reward scenarios, you will also be managing your emotions because you know your possible risk and possible reward BEFORE you enter the trade, you then set and forget the trade and therefore there is nothing to become emotional about.

But those that succeed will have done so because both parties have shared the risks and the rewards and made commitments for the long - term.

It's because there are two sides to the risk / reward equation (as stated above) and just focusing on one side can be DANGEROUS!

So it's a situation with a bit of hair, but I also think that this is a deal that is almost certain to be completed, and because of that it's still a bet with an attractive risk / reward ratio.

Last season was catastrophic because we took the risk of making our full backs essentially wingers, this time round we literally took no risks and as a result got no reward.

Sometimes luck is against you, but we deserved to lose, because Watford took risks and got rewards.

If you even suspect that you haven't been giving any of these things your all (and be honest), then address those problems first, before you start risking your health and denying yourself the personal reward of knowing you succeeded because of you, not because you were weak and took some pills that any dick could have taken.

It felt like destiny when I was browsing through the store and came across Chromalights in the shade metallic teal because it was all the color reward without the risk.

Cyber Relationships: The Risks and Rewards of Online DatingI really liked this article about online dating because it took on many different # 1 Confidential Herpes dating site for singles with Herpes to find love and support!

Or the potion change to making them able to be drank while moving, which was talked about a lot at E3... Even then it isn't an instant hit — there's still a risk / reward because the longer you can stay drinking with the animation without getting hit you'll get more energy — and you'll get the max amount of energy if you stay safe.

While games have been popular for years, companies are using them to train new employees more than ever because of the low risk and high reward.

The risk is that teachers and schools may be wrongfully rewarded or punished because value - added techniques either over - or underestimated their students» learning gains.

If you had a predefined profit target set at a 1:2 or 1:3 risk reward ratio, but as price gets close to that target you move it further away because you «think» price will keep going for an even bigger gain... that is greed, and it will almost always result in you making LESS than you would have if you just exited at your predetermined profit target.

It happens often enough to be something that you need to understand and know how to make proper use of, because these scenarios can often yield very high - probability / high reward to risk trades.

I look at the 50 % point of the actual pin bar itself as well, as often you can place a sell limit order at this point because price will often retrace up or down the pin bar the next day after it forms, this often allows you to have a tighter stop and thus a larger reward to risk.

The reason is because each of these types of investments have different risks and rewards.

I agree that there is a relationship between risk and reward, but just because there is more risk, it doesn't necessarily mean there is more reward to be had.

Stocks listed in emerging markets such as South Korea, South Africa, Mexico, Brazil, Russia, India and China have a place in your portfolio because of their higher risk / reward profile and lower correlations to developed markets equities (though markets are becoming more correlated).

The reason your risk to reward ratio is so important in trading is because with a 1:1 ratio and a 50 % strike rate (win rate), you would break even.

Your actual reward to risk ratio can vary because some traders (like myself) move their stop loss to break even, and we also exit early at times depending on upcoming news events or market hours.

Remember: markets do not move in straight lines, instead they ebb and flow, as short - term swing traders our aim is to take chunks out of major market moves, not pick the exact top and bottom, so don't get caught in a cycle of constantly giving up solid 1:2 risk reward gains or more only because you are stuck in a perpetual state of greed and hope.

This article comes at a perfect time for me as I have been «practicing» on my demo account and not seeming to get ahead much because I have been inconsistent in my risk / rewards.

When you begin to view each trade setup as just another execution of your trading edge and effectively implement position sizing and risk to reward scenarios, you will also be managing your emotions because you know your possible risk and possible reward BEFORE you enter the trade, you then set and forget the trade and therefore there is nothing to become emotional about.

I can promise you that you will blow out many trading accounts if you don't learn to take profits by setting logical reward scenarios of 2, 3, or 4 times your risk, if you trail your stop you can sometimes pick up 5 times your risk or higher, it all depends on market conditions and whether or not you can deal with letting a 1 to 2 or larger winner turn around and move against you because you were hoping for a bigger reward.

The reason why the majority of traders lose money is because they number 1; don't understand risk reward and forex money management, and number 2; they have not truly mastered a highly - effective trading strategy like price action.

I do cover risk reward in my training course yes, cfd's on stocks are risky because the market can gap overnight and weekends, thus why i prefer forex as it's a 24 hour, liquid market with less gaps.

The truth is, many pro traders are not winning more than 50 % of the time, but because their money management is so good, and their understanding of risk reward is so deep; they still make a sickening amount of money in the markets.

Trend traders are profitable long term because they thrive on taking calculated risks and collecting their rewards.

Many traders get caught up on losing 2 or 3 trades in a row because they fail to understand the full implications and practical application of risk reward ratios that take time to play out.

It also provides a vehicle for investors that balances risk and reward because you can choose to lend to people who more likely to pay off loans.

Many of the cheapest stocks are so affordable because they are failing All investments come with a mix of risk and potential reward.

To me the risk of using them and subconsciously spending more money because of it cancels out any rewards I might get.

Thus, most traders should approximately breakeven over the long run because trading with a (truly) random entry and a 1:1 risk reward is analogous to a random coin toss.

This is because it improves the risk - reward ratio of the investment by reducing risk and improving the chances of making a greater profit when, ultimately, the market recognizes the true worth of the share.

Penny stocks are risky, but with high risk comes the potential for high reward, and penny stocks can be hard to resist because of the potential for the high reward.

My Trader's Journal is a valuable resource for ideas because I believe I manage risk and reward well.

Historical market data shows the evidence for this relationship between risk and potential rewards: Since 1926, stocks have generated much higher compound annual returns than bonds — 10.0 % vs. 5.5 % — because stocks are a more volatile investment.

That's the maturity risk that I mentioned above, and the reward from that is low because so many are trying to do it.

«There are a myriad of similarities and lessons that hold true in golf and investing: from the risks and rewards of being aggressive to over-thinking a decision because of too much analysis,» Abbott, VP of Private Investment Advice says.

The risk and reward are known because the trader sets them; he decides where he will take his profit (his reward) and where he will take his loss (his risk).

There's no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities.»

Because of the high transaction costs and the sophistication needed to trade them efficiently, options are not a suitable trade for average investors unless they really want to pump up the risk - reward they are assuming.

In fact, there are some who consider survivorship life insurance to be one of the best ways to build substantial wealth, because the risk is relatively low and the reward can be significant.

On the other hand, if you allow yourself to be consumed by greed and trade with let's say a risk of 20 % per trade, force the system to trade with negative risk / reward ratio because you want to have a win rate of 99 %, you will not have much success with the Forex Force system or any other automated trading system.

But the advantage of doing that, by casting your net wide and waiting for things to come to you and making sure that the risk is priced in and the volatility and all the concerns that people have are priced in, is that you can grow your capital, your principal amount, because you can get capital appreciation from that investment opportunity as the risk is priced in but the reward is not.

Because of potential adopters» concerns about expenses and additional care, many cats with disabilities get overlooked in shelters, but Natalie said the rewards vastly outweigh the risks.