When should we take profit?! 🚀
We are up over 18% in 3 days...now what?
Let me be CRYSTAL 💎 clear, before giving you this price target. NEVER LET A PROFIT TURN TO A BAG 🎒. We take risk at the beginning of a trade…not days, weeks or months later. We are in a position now, where we will win, no matter what, and we are just going to let it “cook” for as long as possible. Now personally, I think this stock has much much further to go upwards. However a black swan event could happen at any moment while you are sleeping.
This requires you to do 2 things:
Set your stop in profit (where is up to you….I dont recommend making it too tight). This should be a habit always. Initially your stop would have been in a loss position. We can now avoid that.
Set a notification at your stop price. Because stops are not active during post market activity, you should stay alert of post market activity in case you need to cut a position post market. You can do this with a limit order. This is particularly important around earnings, and key economic releases. Here is a list of major upcoming economic releases for the next 2 weeks:
07 January - European Union Inflation Rate YoY, Unemployment Rate
(European Union, Japan and Great Britain are important to track due to their currency fluctuations significantly impact the value of DXY)
08 January - FOMC Minutes
10 January - Non Farm Payrolls, Unemployment Rate
11 January - China inflation rate YoY, Balance of Trade
You can find more here: https://tradingeconomics.com/calendar
Now, here is my long term price target, and do take this with a grain of salt, again, as the macro environment can change at any time.
At the time of this writing, the price is up 18% for the day (I am personally up 14.5%).