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Google Earnings Trade: Risk Vs. Reward

Jul 04 2012 12:51 PM | SteadyOptions in Seeking Alpha

As we all know, risk and reward are directly related in trading. You must take more risk to get a larger return on the trade. There is a third parameter, which is related to a potential return: probability of success. A higher probability of success translates to lower potential return and vice versa.

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