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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: SwampDogg who wrote (124513)	7/21/2008 4:59:13 PM
From: riversides	Respond to of 313969

4. The Reward Must Justify the Risk The buyers may be in control of the stock, the stock may have pulled back to the trend line and you may know where you plan to take your loss. However, you also need to have enough upside potential to compensate you for the risk of taking the trade. As a general rule, I want twice the upside potential as I have downside risk. If the stock has a price ceiling that will likely slow the stock from going higher, make sure it is twice as far to the upside from your entry point as the floor price where you are planning to take a loss if you are wrong. If not, forget the trade