Upside targets
- Thread starter KGTrader4
- Start date
measured move (will get front run) is my favorite.
What you should do is set trailing stop losses on good till cancelled basis. That will allow you to ride the trend of that stock as long as it lasts. Why would you seek target prices? Target prices work best when swing trading and taking small profits. In this case, you are capping your gains in a strongly trending stock that could potentially give you decent profits, with price targets? On a pullback, you can set the price target at the most recent high. Still, why would you want to do that? Cap your potential profits to a small amount?
let's say you enter with 3 lots (or multiples of 3).
1st lot - target decent profit
last lot - hold it for many weeks/months.
have a STOP in place
2nd lot - target profit somewhere in between
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This is the way to measure it. You take the most recent high, say $20, it pullbacks to $15. You set your stop loss @ $14. Entry is at $15.50. So, your risk is $15.50-$14.00 = $1.50. Your reward is $20-$15.50 = $4.50 reward. Divide $4.50 (reward) by $1.50 (risk) and you have your reward to risk ratio of 3/1. Most traders will tell you to shoot for 2/1 on any trades. Better is 3/1 because you are giving yourself a better reward to risk ratio. The higher, the better.
OK, but more to my example, lets say it goes to $20, consolidated at $18.50, then broke out, i buy it at $19.50 or 20. I'm buying at all time high, there is zero overhead resistance
If your stop is 18.5 and you are looking for R/R of 2/1 then double your entry minus your stop for your initial target.
Enter at 20 stop at 18.5 = initial target of 23
Move your stop up as price increases.
Ok makes sense. Thanks
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I assume good fundamentals/which win in the end.
The profit target is let the profits run/ trail a stop .
Profit targets \which i do on some stuff, i would never do that all the time, but good way to get inferior returns + thrills if that's the main goal.
As far as a profit target on that, exit when it stops making higher highs on monthly even if it makes higher lows on monthly candlecharts........................................................... Sell your worst % gainer ,[stock] even if its a good%.