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Upside/downside ratio

• The ratio of the potential gain to the risk of loss. This is based on the potential gain from the current price rising to the forecasted high price compared to the potential loss from the current price dropping to the estimated low price. An upside/downside minimum ratio of 3 to 1 is recommended for long-term investments.

 
 

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 High price
Investments
Low price
Risk
 
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