Evaluating Risk verses Reward

Evaluating Risk verses Reward ​

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Here is a YTD (Year to Date) Price Performance chart of the S&P 500, with a standard Bollinger Band. We are currently sitting at -2.84%, so if you jumped in now, the upside potential to the .10% top of the Bollinger Band is a gain of 2.94% Meanwhile the downside potential to the -8.58% bottom of the Bollinger band is a loss of -5.74%<o></o>
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Using this method, I would determine there is too much risk for too little reward. Besides I'm still waiting for a higher high & low...<o></o>







Take care...Jason</o>

 

[Mski]

Nice chart. In line with my thoughts too. (1% above the moving ave. which is on a downward trend)

 

[alevin]

nice chart, JTH, never realized could do BB's in terms of % from top band, never thought to evaluate in terms of % risk. learned something today well worth applying. thanks!

 

[JTH]

nice chart, JTH, never realized could do BB's in terms of % from top band, never thought to evaluate in terms of % risk. learned something today well worth applying. thanks!

Thank you for the kind words, it's something I should do more often, before making an IFT.