lottery ticket trades

A lottery ticket trade is one in which a trader takes a small risk in a bid to pocket a highly uncertain but highly rewarding return. For a trade to qualify as a lottery ticket trade: The return should be notably higher. A high degree of uncertainty should characterize the return. On a...

For better or for worse, stock trading is often compared to gambling due to the uncertain outcomes and the financial risk involved. While most long-term investors are looking for any way to reduce risk in their portfolios, other traders enjoy the thrill of the big win, even if it means a loss or...