How to Set and Revise Realistic Price Targets for Your Stocks
An investor over time attaches some validity to his or her initial price objective, meaning that modifying that expectation becomes difficult for reasons totally contained only between one’s ears.
But stocks go where they want to, despite what any participants think is justified and despite what investors might wish would happen. Investors unable or unwilling to let go of original price opinions are doomed to lose, either through losses in positions that never come back, and/or from better opportunities elsewhere that have been lost.
There are two primary ways that investors get into trouble when setting price objectives:
...To continue reading this article you must be registered with AAII.
to read this article and receive access to future AAII.com articles.
Already registered with AAII? Login to read the rest of this article.