That Tasty Risk-Reward Play

Often I talk about risk-reward scenarios and how the stock market was finally of a little interest to me.

So I decided to add some Tesla shares to my IRA, which I had mentioned on the Leofinance AMA. Mainly because - not only was the stock market down 20+% the past year, but Tesla was down like 75%. Also, Tesla is still a stock favorite among the masses so its not like it was down on its luck, the company is still growing..

That Tasty Risk-Reward Play

Thus I looked at the risk-reward based on these factors (and price levels on the stock chart) and was like, my potential upside is much more than my potential downside.

AND THAT IS THE MAIN EQUATION IN EVERY INVESTMENT IN ANY ASSET CLASS.

This particular one has worked out for me as it was well in the green even before the pop higher on earnings, but again it is not about the actual result. It is about investing with favorable risk-reward scenarios.

Posted Using LeoFinance ^Beta