I just started trying to learn about trading a month ago and I'm currently trying to get my head around setting exit prices. I'm wondering how much do analyst price targets affect your exit strategies?
Case in point: the first stock I bought was HHS and the price target was $20. I bought at $10.26 so that would be double my investment. I didn't set an exit plan in my brokerage account because, well it was my first buy and I had no idea what to aim for. I was thinking I would be super happy with a 25% profit and consider selling at that point. Well, earlier this weak it jumped to ~40% and was like, “Oh shit, what should I do?” I would have been thrilled with a 40% profit, but thought maybe I should just let it ride for a year? It's been hovering around 20-30% since that day, which I still think is great. So, for me just starting out, it's the emotional conflict I need to get beyond. I need to learn to set that exit price and go with it.
I've been reading up on various strategies for setting an exit price, but I wonder, do active traders really give much weight to analyst target prices?
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