Topic: Target Price Methodology - page 2. (Read 482 times)

It is nice to have control of our marketing strategy and that our price. If you don't have such control and allow emotions to take over our decision, it means we will keep going up and down profit and losses. The problem with trade is trying to make all the wealth at same trade and forgetting that we need to set a realistic target. Such realistic target gets us gradually into the big picture. Riding the market easily and gradually is the best and not to rush.

A target price is AN estimate of the longer term value of a market. Target costs square measure supported earnings forecasts and assumed valuation multiples. ... whereas opinion-based ratings have restricted worth, target costs will facilitate investors judge the potential risk/reward profile of the market.

I think business and emotion are two different things but I have to control them myself. Many times when we go beyond the set target in the hope of making more profit, we think that it should not be done at all. I need to have control. Therefore, it is important to follow a suitable target price methodology for buying or selling any asset.

This assumptions may be due to the fact that some users face lots of losses due to impatience and not wait for the profit. It means that you should think about the profit that if you have profit up to 5% or may be 10% then you should sell that coin as the greed behaviour may be sometimes become the reason of your failure. Whenever the price become in  dip then at least wait for the initial price to rise as selling at low price can make you loss of capital.

You sound like practical and this is how we should make use of technical analysis for finding out target price levels. Unfortunately, I was not taught on how to book profits with the help of technical analysis but what I have learnt from books and mentors was, we should primarily focus on entry levels and for target levels we can go as per our own expectations on profits.

It is like if we prefer then we can book profit at 5% or at 20%; it is like highly self-driven based on individual's preferences.

Target price isn't static as different factors affect target price. Capital is one of the key factors that decides how much profit target to set. But it's best to keep your profits realistic and achievable and it should be able to cover for losses when the occur. Having a fixed profit margin can be deceptive as trend changes and market volatility alternates

I usually go with fixed or get because when we are not greedy then we can easily book profit at what we need for that particular day. I am not actively trading these days still whenever I go for day-trading then I prefer to book profits at some 10% from my entry before the trend of market is changing. I am always afraid of market fluctuations from what we could predict; which is the reason I am satisfying myself with some profit rather than facing losses.

If you go waiting to gain up to 50% profit for your every trade then you might need to be patience for weeks to months because for that much big target levels you should have strong technical analysis and then you should have proper stop loss level; this way until your stop loss levels are not triggering then you can keep waiting to gain up to 50% profits.

You never considered emotions too lol Many times traders have a particular spot to want to exit but because of emotions they adjust and keep adjusting to an extent that greed sets in and at the end it comes into losses. Trading isn't easy and most times it is speculated upon but if we work over our emotions, we can always succeed.

You mean we should have imaginary target and when price reaches that target then we should book profits? But, I feel like if you follow this method then you will regret when market keep rising after you exit. I am just talking about bitcoin trading and you cannot predict the ATH level without the help of any technical analysis hence if you go with your imaginary target then definitely you will regret after some time.

Instead of going for imaginary target levels by your assumption, you should go for technical analysis to find out the probable peak price level and around that you should book profits then you may buy back with the help of same technical analysis.

These are all speculations and one thing that is to keep in mind is that one who are interested in trading then he should have to think about the value that if this coin reach to certain value then i will sell it just because it will give you benefit. It is really hard to predict the exact price but some people can make speculation and that works well.

You must think of cut loss price and target price.

From your entry price, target price / cut loss price should be 3x. It means you see bigger profit than loss if you take profit or cut loss from your entry price. If you see it is 1 or less, it is bad because you are gambling with difference of price to get loss is bigger than price difference to take profit.

There are multiple methodologies are available to set your target price levels.

1. Fixed targets. This can be 5% to 50% profits from your entry level and based on time frame of your strategy.

2. Technical driven. Candle sticks and support/resistance kind of strategies will notify about the change of trend to book profits.

In simple way, how you set your stop-loss levels? Stop-loss is a target to exit in negative direction and same applies to positive direction as well. Hence, you do not need a new mechanism for profit booking just go by your usual technical analysis way.

A trailing stop seems to me as a useful tool that can be used even if you have a target price, after all even if you have a target price you want to reach before you sell it is not rare for the market to move in ways we cannot predict and the price could go down before it reaches our target, but if we use a trailing stop then even in that scenario you will obtain profits as it will exit your position at an earlier point than if you were using a traditional stop loss.

Thank you for your explanation! I was looking through many charts the last previous days and I wonder, what to do, when we don`t have yet the next resistance line. If we look at your images we can see that the price was bouncing between two lines: 67507.79 and 60326.90 (the first picture). Those are support and resistance levels (for that time). Lately the price went down, to the next support level 53784.98. But what if the price would have broken through the first resistance level at 67507.79 and would have gone up? How in this case should I place my orders, if I don`t know where the next resistance would be? Is there any calculations for it?

Could you please tell more about this levels and how can I trace them. I already know about Fib.retracement, RSI, Momentum, Money Flow and Bollinger Bands, but I know about each of them separately, although I don’t know which indicators should be used with each other and how to superimpose one on top of the other.


Yeah, I also tried to do that, and at first I thought it was a good strategy. But I faced a problem with guessing the percentage by which to tighten the stop loss. For example, I bought at 50, set stop loss at 45, then it bacame 55, I changed stopp loss to 50 and began to wait for 60, but it hit 50 again after my stop loss was set, the order worked, I sold, however it became to rise again and reached 60, but without me this time.


How can I define S/R levels without using patterns?

Buying at support in an uptrend or a range market and selling at resistance in a declining trend or range market. But this isn't still a sure investment plan and so stop loss should be considered when making your entry because market can trigger support and resistance and even go beyond the support or resistance zone.

Honestly I have seen different story on the forum. Peeps here actually never tell to set the target price and dont advice them to hodl until they reach that particular prices. I think it's dangerous to do that because one can get stuck forever in the bear and bull loop if the price was too high at which they bought and if the coins are not doing pretty good in the bullish trend.

Most often users are seen giving advice to do the technical and fundamental analysis and based on that enter the market and make the exit strategy. Setting target prices is good thing as we know when to stop, but there should be a limit at which we set it. Investors has seen going crazy about the profit booking and instead they have ended up with loses than profits because they were too greedy.

Just enter the market at bear, make your mind clear that you have to reach your BEP, get few % in profits and exit it before your mind gets corrupted with greediness. Thats all mate.

What @hugeblack said about support levels is worth noting. Support levels are point were you can assume that a break towards lower price is a low probability, or price sees a high buying chance at that. Similarly Resistance levels where the selling pressure is high, it becomes a difficult point to cross coming from a support level below that.

Prices usually from a support towards resistance when bullish and opposite in bearish. But for how many levels this might go depends on the volume of change and how deep the support level is. As you lower, the stronger the support level, usually. You can link this with the fact that people will buy bitcoin if its price is low and therefore support it more when it goes down. Same thing happens in the stock market too.

Dont try to depend on patterns, this is my experience. These patterns are all man-made, no market tells you that "I am following this pattern" - usually these patterns are terms used to describe movements by news media and analysts. What you need to keep in mind is S/R levels like I said above and also the fact that bitcoin is a deflationary currency meaning that the longer you hold the more valuable in fiat it becomes.

Even if you exit the position early, it will not matter in the long run. The peak prices are often short lived, better than missing out on the sell order at that point, dont you think it is better if you sell fractions at every near-peak price? You dont need to touch the tip, but you can skim the sides of the peak and still get a lot.

Use trailing stop when you are not sure about when you should be going out. This means when it is going up, set the stop loss higher and higher, which means the moment it starts to go down, you will be automatically selling but still making a profit.

So, let's assume you bought at 50, you set a stop loss at 45, then it becomes 55, you change your stop loss to 50, it becomes 60 then you change yours to 55, it is 90, you change yours to 85 and keep doing that as long as it goes up. This is only applicable if you do not have a set target price. This way if it crashes suddenly, you still get out and still making a profit at the same time and benefits you greatly. However if you really want to decide on target price, then you should learn more about technical analysis. In TA you have a lot of indicators and people make their strategy based on that indicator.

You have raised some questions that probably other participants are likely to ask too. At some point I asked something like that and wanted to follow it up but I tell you it is possible to do or see in apps or something, it only base on your own determination to know the percentages you want to enter or you want to exit. This is good though, it will work like stop loss and in fact it will be a stop loss and profit gauge for you.

Mostly this can be very practicable when you are in a staking platform, you can monitor your profit easily because it is not volatile like trading coins. For trading you have to be fast in your calculations for some high volatile coins like bitcoin. However for your enquiry, it will have to depend on you to run out your percentage in calculating your entry and exit point.