Editor's note: This was originally published in two parts on RealMoney. It is being republished as one article as a bonus for TheStreet.com readers.
Like playing poker, successful investing depends on assessing the odds of an uncertain outcome. Ideally, the stocks you own will pay big if your thesis is correct and lose just a smidge if the idea fizzles. This is smart money management; tilt the odds of success in your favor and over a lifetime of investing, small advantages compound into large sums.
In this column, I show how to estimate reward vs. risk, which may give you an edge in 2009. To illustrate, we'll use Ensco International (ESV Quote). Ensco provides offshore contract drilling services to the oil and gas industry. The Dallas, Tex.-based company, founded in 1975, operates around the world. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
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DOWN
154.48
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DOWN
19.14
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DOWN
37.61
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DOWN
0.48
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10 Yr
3.23%
SPDR Gold
115.06
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-1.48%
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-1.72%
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-1.73%
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-1.46%
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Data delayed 20 minutes |
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