RE:RE:RE:RE:Ron Hello Ron,
This is a case of what is referred to as utility theory and risk analysis.
Imagine 3 investors, say Gabriel, Alex and Ron.
Gabriel buys (2.x) shares at 11$
Alex buys (1.x) shares at 11$ and hopes to double at 9$.
Ron buys nothing and hopes to buy (2.x) shares at 9$.
Assuming there is 66% probability that the stock goes to 9$ before hitting 15$, the three have the same gain expectancy.
Gabriel : 1/3 (15-11) (2x) + 2/3 (15-11) (2x) = 8 x dollars profit
Ron: (1/3) (0) + (2/3) (15-9) (2.x) = 8 x dollars profit
Alex: (1/3) (15-11) (1x) + 2/3 (15+15-11-9) = 8 x dollars profit
if chances are 50/50 to drop to 9, Gabs beats both.