What is the price goal?

In investing, the price object is the rate that the trader would like to get to realize the best possible result for a traded investment. This usually applies to the sale of investment, because the required rate is the price that the seller wants to obtain for securities that are currently offered for sale. Traders use a wide range of strategies to determine the price goal for the asset, with methods from simple intuition to highly complicated patterns designed to predict where the market price will be when the investor wishes to start sale.

For some investors, achieving a price goal, it includes the assessment of the previous performance of the investment and relating to the expected movement of the asset price in the specified period of time. This can give the investor an idea of ​​how much profit can be achieved from holding an asset for a month, six months or a year. If the investor determines that the price of security will be at a desired level for a year, it can set the target price at the rate of whichIt tends to achieve security at the end of twelve months.

If safety works better than expected and achieves a price goal ahead of this time, the investor can either decide to offer an asset to sell when the goal is realized or continues to hold the asset throughout the projection. There is a certain risk, because there is always a chance that the investment will reach the peak early, then begins to fall and eventually fall below the price goal. For this reason, investors using this approach should constantly monitor market conditions and move rapidly if the asset value shows the signs of starting a downward spiral.

Factors such as the calculation of the gliding diameter or Fibonacci extension are also involved in the pricing target process. Fibonacci extensions are price levels that make it possible to project support and market resistance during the time frame. From this point of view mOhou extension of assistance in identifying probable time to sell asset and get the greatest benefit from the sale.

Another approach to setting a price goal relies on the recommendation of investment experts. For example, if Wall Street analyst is to set a six -month price goal of $ 100 in US dollars (USD) for stocks currently traded for $ 60, some investors would accept this goal without spending much time analysis for themselves. Although this approach has the advantage of using expertise of reliable experts, there is always a possibility that the analyst has overlooked a key factor that the investor would consider before setting the goal.

Since the establishment of an acency objective, there is no subjective, there is no ideal strategy that all investors will use to determine the price. Even when considering the same set of factors, it is possible for two different investors to set different price goals for the same investment based on their interpretationAy and the level of return they hope to generate from the store. As with most types of projections, setting the target creates a goal to work, but does not guarantee that the desired result will occur.