Everyone knows the three elements of a successful trade are the Entry, Stop and Target. In this article let’s discuss the importance of have a definable target that can actually be reached. When I first started my day trading journey back in 2003, I really struggled with targets. I knew how to find a good entry and a good stop but a definable reachable target was a challenge for me to determine. Until you know how the market really moves and are able to understand reachable targets, you’re actually just hoping for a target.
As a seasoned day trader I am really good at pinpointing supply and demand areas. I teach my traders how to define them and trade off of them. If I am going long a stock intraday for day trading my definable target is going to be into the next readable supply area. If I am going short on stock for day trading I know the definable target will be into the next demand level. I believe it is important to keep trading simple by knowing your supply and demand areas, defining them and trading into them for entries and targets. Stops should be used if those areas fail to provide support or resistance. Targets are defined only by prior price action on the charts. They have to be measurable. Once you define them they are not hard to find and once you find them use them to trade off of. If you do this, you will find that the results pay out.
