Sep 28 2020 17 mins 5
In a stock market that is governed by randomness and unpredictability, any attempt at forecasting into the future will always fall short of capturing the infinite number of outcomes that could take place. Still, [Monte Carlo Analysis](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/monte-carlo-analysis-part-one-01-19-2018 ) is probably the most accurate way to gauge what could happen in the upcoming period. From volatility to stock prices, its application is widespread, and today, we see how it applies to the [P50 metric](https://www.tastytrade.com/tt/shows/tasty-extras/episodes/p50-and-the-probability-of-profit-04-22-2020 ) that we lean on to help manage our winning positions.
