|
|
Status: (4) Ferrari
Joined: Oct 2007
Posts: 1,040
|
Expertise: E-Business: Marketing / SEO
Locale: Scottsdale, AZ
My Mood:
|
|
|
Re: Risk Poll 1 - If I gave you $300...
|
Nov 22nd, 2009, 10:38 AM
#6 (permalink)
|
as a stock trader it is a classic risk reward analysis. Since the first scenario is a sure thing, by entertaining the second option you are in fact risking the sure thing for the first option.
Option 2 then has a risk of $100 and a reward of $100 (200 - the sure thing from option 1).
At a 1 to 1 risk / reward, I'd pass on that trade.
|
|