Realistic Spread Determination

[carltonp]

Hello Traders,

I know how you guys like to beat up newbies like myself, so I'll keep this brief.

Can someone please tell me how does one determination the realistic spread that can be achieved for a stock?

For example, depending on how my strategy pans out, I plan to purchase ESRX for $53.33. My target price is $55.76. Therefore, the spread is $2.43. I would like to reach that target by Friday.

I would like to know how do I determine if that is a realistic objective?

One school of thought is the ATR for the stock.

Any suggestions will be greatly welcomed.

Cheers

Carlton

 

[murray t turtle]

Quote from carltonp:

Hello Traders,

I know how you guys like to beat up newbies like myself, so I'll keep this brief.

Can someone please tell me how does one determination the realistic spread that can be achieved for a stock?

For example, depending on how my strategy pans out, I plan to purchase ESRX for $53.33. My target price is $55.76. Therefore, the spread is $2.43. I would like to reach that target by Friday.

I would like to know how do I determine .....

Any suggestions will be greatly welcomed.

Cheers, carlton says.
================

Carl- Trend
3 year weekly chart can be quite helpful;
10 year monthly shows me average monthly gain.Most likely you may want to get bigger % than that.

$45area to $58area is much more logical profit targets[3 year weekly charts];
5% is likely to get you peanuts/trouble in the long run.[slippage , suprises,rtend changes , mistakes, power outages......, all of which happens to any pro or any one ]

I like a good uptrend;
but neither SPY nor that one is a good one, now. But live & learn. Wisdom is profitable to direct.