Ive been playing a few $2 and under stick fir a couple years now and HAVE made a few bucks, but what I dont understand is why would anyone; A. Want to buy or sell just enough sharea to take their stock to a certain price. B. And how do they calculate how mant shares then need to teade in order to do that......seeing as hiw, there might be thousands of other traders looking as t the same stock? Sorry, but I just dont get it - the why OR how!! Frankly, when I buy I couldnt care less how far it goes up!! Why would anyone else??
If traditional valuations are being used, its a moving target based on history, current earning, future projected earnings for x amount of yrs usually. Find out how many shares there are, how much they are worth per share based on the x yr valuation. then see if u think your number matches the market or if the market has unfairly valued the stock that u think should be higher....or lower if thats your angle.
I guess I don't fully understand the question. Are you asking why do people set a target for a trade and then get out? It's the same reason they set a stop loss and get out. Every trade should have a plan when you get in. Some treat it as gospel, others treat it more like a guideline and not a rule. I'm in the latter. Once my trade hits the target, I just watch it a lot more closely than when it's in the middle of my allowed trading range. Nobody "wishes" to only make X amount, they'd obviously rather make more but they've set a target and based it off some sort of parameters. I could decide "I'm getting out at this target because every time it's made it to this price, it's dipped 10% from there, so why take the risk?"
