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Definition of 'Profit Target'
A predetermined point at which an investor will exit a trade in a profitable position. Profit targets are part of many trading strategies that technical traders use to manage risk. Before an investor enters a trade, he determines a profitable exit point at which he will sell out of the position. Traders establish profit targets to avoid letting emotion take over a trade. A profit target can be expressed as a dollar amount or as a percentage return.
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Investopedia explains 'Profit Target'
The opposite of a profit target is a stop loss point – a price point at which an investor exits a trade that has experienced a predetermined level of loss in order to avoid losing even more. Some investors use chart patterns to determine their entries, stops and profit targets. They look for patterns, such as triangles and head and shoulders, that make it easy to identify these three points.
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Search results for 'Profit Target'
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http://www.investopedia.com/articles/technical/02/031102.asp
... How far the breakout is likely to go can be estimated by use a profit target,
attained by taking a measurement from the triangle. ...
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http://www.investopedia.com/articles/technical/121201.asp
... Plan the trade beforehand, writing down the entry, stops and profit targets and
noting any variables that will change your stop or profit target. ...
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http://www.investopedia.com/articles/forex/11/most-used-forex-patterns.asp
... it can be placed below the head at 1.1960; the latter exposes the trader to more
risk, but it has less chance of being stopped before the profit target is hit. ...
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http://www.investopedia.com/articles/forex/08/turn-to-carry.asp
... 4. Set profit target for the first unit at 50% of risk (ie, if you are risking 100
points on the trade, then place a take-profit limit order 50 points above ...
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http://www.investopedia.com/university/meta-trader-guide-intro3.asp
... To modify an order, such as to add a protective stop loss order and/or a take profit
(profit target) order, highlight the trade in the "Trade" tab of the ...
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http://stocks.investopedia.com/stock-analysis/cotd/EL20111219.aspx
... tested. A breakout above the high provides a profit target of $78. If ... $67.72.
If the high is exceeded, the profit target is $76. On ...
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http://www.investopedia.com/articles/forex/11/european-open-forex-trading-strategy.asp
... Alternatively, we can use a second profit target by calculating the height of the
opening range and then adding/subtracting it from the breakout point. ...
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http://www.investopedia.com/articles/trading/10/intra-day-turning-points.asp
... Whichever option is used, use it consistently. Profit Target If we trade with a
profit target, we always know what our potential reward to risk is. ...
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http://www.investopedia.com/articles/forex/08/turn-trade.asp
... Set a profit target for the first unit at 50% of risk. (So ... entry.); Move
the stop to breakeven when the first profit target is hit. ...
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http://www.investopedia.com/articles/forex/08/rsi-rollercoaster.asp
... Our first target is set at 50% of our risk, or 138 points forward. The very next
day the pair collapses further and our first profit target is realized. ...
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