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Strategies & Market Trends : Value Investing

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To: amoezzi who wrote (18717)2/20/2004 11:58:30 PM
From: James Clarke  Read Replies (1) of 78748
 
<<Can anyone help me to find out: How to estimate a
risk to reward ratio for going long on a stock trade.
A appreciate all the advice.>>

Understand the business and understand the financial statements enough to value the business. Then understand what the current price vs. the intrinsic value and the risk inherent in the business implies about the odds of losing money on the investment. I know of no other way to do this. Shortcuts don't work, though there are plenty of them.

If you're thinking of "going long a stock trade" you're not in the right frame of mind. Think of "buying a business" and what that means.
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