Sentences with phrase «average risk reward»

This is the power of your average risk reward ratio over a series of trades coming into play; we will see this in action below...

Not exact matches

High - beta stocks are simply the shares of companies whose stocks trade with above - average volatility — and like the twin peaks of a two - humped financial camel, these stocks carry both above - average risk and, potentially, above - average reward.

Ideally, we were prepared to enter a short position if $ GLD bounced into key resistance of its 50 - day moving average, which would have provided us with a low - risk entry point with a very positive reward - risk ratio.

Note that the Risk / Reward Rating for a sector or industry uses the same methodology as our stock ratings, except that the component metrics are market - weighted averages for the stocks in the sector or industry.

Investor demand for above - average risk / reward opportunities has been met with new outlets for speculation, the result of which is that new risk capital available for exploration for supply - starved commodities such as zinc, copper, gold and silver is dwindling.

Rich global valuations, predominantly thin risk premiums, and uniformly rising global interest rates haven't rewarded investors historically, on average.

Looking back through history, whenever value stocks have gotten this cheap, subsequent long - term returns have generally been strong.3 From current depressed valuation levels, value stocks have in the past, on average, doubled over the next five years.4 Not that we necessarily expect returns of this magnitude this time around, but based on the data and our six decades of experience investing through various market cycles, we believe the current risk / reward proposition is heavily skewed in favor of long - term value investors.

Break out traders who use momentum indicators such as the MACD (moving average convergence divergence) index or oscillators, such as stochastics, should look to find a risk reward profile that best suites breakout trading.

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Stock / equity funds — As you probably guessed, stock funds have basically the same risks and rewards as individual stocks — high volatility, risk of losing money, easy to buy and sell, good investment to beat inflation, and historically among the best returns, on average over time.

The cypher pattern is an advanced harmonic price action pattern that, when traded correctly, can achieve a truly outstanding strike - rate as well as a pretty good average reward - to - risk ratio.

However, the risks often outweigh the rewards as interest rates can spike up (15 percent — 25 percent on average), which can quickly negate any benefits and place you further in debt.

If you can consistently average a 3R reward each month (meaning a reward of 3 times your overall risk) then that means you are making 3 x 12 = 36R per year.

This fallacy is the assumption that higher risk guarantees a higher reward (in a statistical sense, that is, on - average).

That is, you accept a risk only if you are likely (in a statistical sense, on - average) to receive an adequate reward.

I have dabbled in quantitative factor models in the past, and normally I start with an index, group by sector, and then compare each company relative to its sector (I use valuation metrics, liquidity, technical factors such as relative strength and price relative to moving averages, earnings volatility, earnings estimates revisions, balance sheet metrics, beta, and a proprietary risk / reward metric).

There are times when risk premiums are low, like now, 2000, 2007, and it does not look like risk will be rewarded on average over the next ten years — that is a time to preserve capital.

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.

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But judging by historic capital allocation, poor returns on equity, and generally intransigent management, on average the pricing & risk / reward of Graham - type bargains isn't really much of a free lunch.

I'd argue you should demand a lower average Loan - to - Value (LTV) ratio for a developer, in light of the additional risk and reward.

Dollar cost averaging (DCA) has lower risk and lower reward than lump sum investing.

I hold accordingly... but for other individual shareholders, it will depend on their portfolio & perspective: On average, event - driven investments do offer attractive risk / reward, but if you're itching to buy a high potential growth stock right now (for example), you may prefer to raise some necessary cash.

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.

And, the composite of the four indexes (marked with a grey dot) has better risk or reward characteristics than the average of the single - metric noncap indexes.

Those who pay their balances in full each month might be able to risk signing up for a card with high rewards and an above - average APR..

But for the average player, the risk - reward of the parry (if you failed to parry, you'd take a Hurricane Kick to the face) felt daunting, especially at a time when fighting game dilettantes could flee to flashier games like Marvel vs. Capcom or Tekken.

This coupled with an insatiable appetite to learn and thereby make informed decisions, causes the average Generation X or Y consumer to delve deeply into the risks and rewards before they commit to buying.