Risk & Reward

Risk/Reward Ratio Definition and Explanation 


A ratio used by Vonanka.se and investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns as a day trader; it is important to keep track of the risk reward ratio.

Explain Risk and Reward Ratio:
 - It is how much you are willing to risk for the chance of a good profit. It may be worth risking 50 points to make 100 points, but it may not be worth risking 50 points to make 30 points.

Study our risk strategy:

Study our Nirvana risking profile:


One way to make money is to trade stocks through CFDs "Contracts for Difference". As with everything else, there are pros and cons when trading CFDs, just as there are in options trading.

However, one thing to note is CFD is a specialized form of commerce and requires knowledge of how the markets work in relation to the underlying instrument.
-Yes there is no universal system that works in all types of markets; instead you need to develop your trading model, so it fits exactly the type of market that exists right now!

Pricing your own options the easy common sense way ! Option now at 100 and price to buy month is 110, choose 5 possible prices, and a probability then calculate return and weighted return, sum up the weighted returns to get the value.






As seen from Nassim N. Taleb ‏@nntaleb
A critique of economic models from within, using the very math they use. Most are FRAUDS.
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FINDING THE MINIMUM VARIANCE PORTFOLIO
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VonAnka

Provides trading systems, training & strategies. Indices, stocks, commodities. Teknisk aktieanalys med strategi. TWITTER @VonAnka_se
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