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When to Buy Using Short Term Patterns With Matt Caruso | Trading Crash Course

The TraderLion Podcast

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What Rate Do We Use for Opportunity Cost?

Use the vital present value formula. If you want no risk and you have no opportunity cost, you could earn almost 2% with the US government that changes every day. But what rate do we use for stocks? So obviously stocks are not risk free. There's a lot of risk to stocks. And it really is going to determine these bull and bear cycles in the market.

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