what is target in trading? Target in farsi is the same as the goal this word is used more often in transaction in fact, the meaning of targeting is that when the trader reaches his goal we say that the target has been hit.
target is one of the most important factors in trading wich every investor and professional trader should use. There are different methods for choosing a target in trading. Some investors and traders use technical analysis methods to select this target in their own traders and some others also determine the share of the target in their transactions from the point of view of Marco economy and the general situation.
why Do we need a target in trading?
Actually the basic challenge is that people are always looking for profit in capital markets. Therefore when choosing a target in trading basically you have to choose the points where there is profitability But on the other hand Humans always love to make profit and some how cannot get enough of it. Also no economist has yet proven that excessive profits can be harmful to anyone.
How to determine the target in trading?
many traders spend all their time and energy finding the best entrypoint, But after entering the trade they get confused and don’t know to manage their transactions.
The result of this flow in traders is a decrease in self-confidence,emotional decision making, means losing opportunities and making mistakes that later have no fruit but regret. Knowledge of how to set goals in trading is very important, but often overlooked. A trader who has a precise strategy to determine his goals it can deal more confidently by eliminating guesswork.
effective methods for determining the correct goals on transactions?
1_fixed ratio of profit and loss: the simplest technique to determine a fixed goal is to consider the profit_loss ratio.
2_Recent support and resistance levels: Another target strategy that is very popular among traders is, it uses the latest support and resistance levels. Support and resistance levels are serious barriers to price movement and it makes sense to choose to choose your target is such a way that the price does not have to cross important support and resistance levels.
3_pattern Reflection: the next method, the height of the pattern is used to determine the rate of price growth after breaking the resistance some traders call this approach pattern mirroring or calculated.
What is the use of the Heikin Ashi indicator in futures trading?
