A Strategy Focused on Risk Can Deliver a High Return on Investment ...READ MORE
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 | | A Strategy Focused on Risk Can Deliver a High Return on Investment | | | Many investors are thinking of income this time of year. They also know that if a yield looks too good to be true, it is unlikely to be maintained. In the past year, income investors seeking the high yield in General Electric were reminded of this lesson.
In the past, investors have often bought stocks with above average yields for income. But there are other approaches and some strategies can limit risk. For example, if an investor bought 100 shares of a stock and saw the price fall $2, their loss would be $200.
Of course, the stock could fall more than that and there is no way to strictly limit the potential loss in a stock since a stop loss order will not always be executed at the desired price. It can be, and often is, completed at a lower price. Some income strategies limit risk to amounts that are even smaller than that.
We explain a strategy that can limit risk in precise terms in our latest article, and we identify a potentially high income trade that could be the type of income investment many individual investors are looking for in the current market environment.
You can find the details of the trade and the strategy by clicking right here.
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