Sometimes buying at $120 is less risky than buying at $100.

At first, this sounds strange, because we usually assume that a lower price means a better opportunity. But price alone tells us neither the risk nor the potential return.
Imagine an asset trading at $100.

If an important support level hasn't been confirmed yet, you may need a relatively wide stop-loss for your thesis to be invalidated. Now imagine the same asset reaches $120, breaks an important resistance level, and confirms the market structure.

The price is higher, but the risk of the trade may actually be lower — because the invalidation point is clearer and the distance to the stop-loss is smaller.

This is where an important distinction matters:

Risk is how much you stand to lose if your analysis is wrong.
Return is how much you stand to gain if your scenario plays out.

So a good trade isn't necessarily one where you buy at the lowest price. It's one where the potential loss is reasonable relative to the potential gain.

For example, at $100, an asset might have 30% upside potential, but require you to risk 15%. At $120, the upside might be only 20%, but the risk could be just 5%.

In the second case, you're buying at a higher price, but the risk/reward ratio can actually be better.

That's why I don't just ask:
"How cheap is it?"

The more important questions are:

If I'm right, how much can I make?
If I'm wrong, how much can I lose?

And this is exactly where the difference between a general market analysis and analysis that can actually be used for personal investment decisions becomes clear. In the advisory work I provide, the goal isn't simply to give you a few stocks or entry points.

The entry scenario, risk level, invalidation point, potential return, and position management should all be defined before entering the trade.
Because buying an asset isn't the difficult part.

Deciding when to buy it, how much to allocate, and how much risk to take — that's where the real work begins.

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@RezaMacroEdge