How is loss chance beneficial?

Loss Chance is the value that helps predict the chances of making a loss from the stocks that we buy and hold for 1 year. If we buy a total of 100 stocks with particular Jitta Scores and particular values above or below the Jitta Line, this value will indicate how many stocks would make a loss. Loss Chance therefore helps investors assess the probability of their error in investment.

For example, when we see a stock with a Jitta Score of 7.5, a price 5% below the Jitta Line, and a Loss Chance value of 35%, it means that if we buy 100 stocks with these exact values, and hold them for 1 year, there will be 35 stocks that are losses, and 65 that are profitable.

Find out the method of calculating Loss Chance at this article.

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