How to Sell and Set Target Prices for Dummies

3 Easy Steps to Get a Stock’s Target Price

*There are many variations as to how TPs are calculated.

But this is the basic template we use in ZFT.

Step 1 : Find a stock

Most public participants would usually pick stocks that are the talk
of the town. Hot stocks that rally like there's no tomorrow. Or
probably stocks that were once hot and trying to get back
to the limelight.

For this example let us look at ION.

Step 2 : Find recent Support and Resistance Levels

Assuming market interest has died down but the stock still has
good trade potential, look for the recent and immediate support
and resistance levels.

For this example, we take 2.63 as the immediate resistance

and 2.04 as the immediate support.
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 Step 3 : Hype Calculate

Calculations aren't that hard.

Target Price = (Resistance - Support) + Resistance

There have been many instances wherein the TP gets hit exactly at
the sweet spot. But there are also times when the prices
overshoots or don't even reach the intended TP price.

We offset these instances by tranche selling into

a 4% buffer zone from the TP level.

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 Example :

If I had 300k Shares on ION, I would sell in

3 Equal Tranches at 100k each.

1st Tranche Sell : Low End Buffer (3.09)

2nd Tranche Sell : High End Buffer (3.35)
3rd Tranche Sell : At Target Price (3.22)

If I had more shares, I'd have more tranches.

In this case If I were a TP (Target Price) oriented trader,

as opposed to being a TS (Trailing Stop) oriented trader,
I would sell my shares double to half the average bid/ask
volume per fluc.

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 Board as of Dec 29, 2015 (Market Close)

So I'd sell 200k - 50k ION shares per Fluc until I run out.
By doing this, I wouldn't cause sudden price spikes and panic.

Remember to always manage expectations. It's better to expect less

and hit your target than to expect tapos papaasahin ka lang nya at
iiwan sa ere. #hugot

But be wary of Target price computations. Not all materialize.

And if ever you see someone giving out TPs that are too good to
be true or out of this world, ask them how they got it.

Trust me, you wouldn't want to be holding stocks that are being
hyped from computations that are derived from smoking pot.

Again, there are many ways to compute target prices.

This is just ONE of the many.