Targets in Trading

Targets can be of 3 types

1. Time-based—I will hold my Positions for a X amount of time Say 1 week depending on the type of trader/Investor.
2. Technically-based – You get your targets technically set up. You can use Pivots, Exponetioanl Moving Average, and MA or based on your trading system.
3. Price/Profit-based –I’ll get out when I have an open profit of Rs 10K or when trade when it reaches target price

All 3 methods discussed above have their own pros and cons.
Time Based can never be used as a Solo tool as we are in a globalized world and markets gets affected by turn of events thought out the world and we can be wiped off the market if some disaster happens.
Technical exit works extremely well when markets are in a strong trend but fails when we have a range bound or congestion market like one we are having now in Nifty. Bears and bulls both are at losing end as Nifty is trading in such a small range.
Profit and Price Based Exits can force a trader/Investor to exit when the Stock/market has just started its bull run and Person can be left just scratching their heads why the stock moves after I exit. This is the same story of most of the traders/Investor.(Correct me if I am wrong J)

Best Strategy to Exit

The best exit strategy is to set price targets which are make sense based on market structure and reflects market existing support and resistance. If you trade plan takes into market support and resistance on all time frame i.e. Hourly,Daily,Weekly and Monthly your changes of taking what all market offers will be far and far higher if your trading is emotionally driven i.e. Fixed Profit or Technically Driven which let you keep lots of money left on the table.