Setting Price Targets is fear-based behavior on your part and you don’t want to let fear dominate your trading.
Setting price targets is about your fear, not greed. You set a price target so that you seem “reasonable” with yourself in terms of what you want from the trade. You should do that with your protective stops, not your winners. I’ve never set a Sell Limit order on my long positions…
Why would we want to set our sights so low…?
You need to start thinking bigger to allow your trades go to 20-1 in a reward-to-risk ratio. Let the market tell you where the bigger move is over. (See Chapter 2 “Surrender” in “Inner Voice of Trading” – free below).
If you can’t imagining it happening, it won’t happen for you because your behavior will predict the outcome.
You may have been coached wrong or have been instructed in a small-minded fashion in setting your sights to low.
It’s your fear that gets you out of the trade too early. Only small traders are looking short-term. Let the HFT guys chop them up, not you.
Join the big boys and let the institutions push your trades further into profitability. Use the market forces against competition for your greater profits, like in judo.
Whatever trading edge you think you have, you cut it at the knees by taking profits too early.