After investment in particular stock how to decide our targets say target 1, target2 and soo on, and how to further fix our new targets in delivery based investment?
I guess technical analysis is quite helpful if you want to figure out targets. The problem with fundamental analysis is that sometimes the movement in the stock might have already occured before you get the news.
Personally I think the best and easiest way is to use a trailing stoploss. So for example if you buy a stock at Rs 100, keep a trailing SL of Rs 90. So you sell if it comes 10% lower than where the price is. If the stock goes upto Rs 140, your trailing SL now is Rs 130. This way when there is a huge upmove in the stock, you get to ride almost the entire journey of it.
But what you need to ensure is that your % trailing SL is more than the average monthly/quarterly volatility range of the stock.
I think for decide the target , you need online trading experts views , they already suggest the stock target, like they suggest- right now stocks price is here, it can go TILL here and target- not will go above this –
They know the market strategy, and know the stocks reach as well. I got this useful information from MMFSolutions. They help me to understand the market and suggest investment ideas.