- Determine if your profit is decided by a percentage or monetary gain.
- Stocks on average shift 5% - 10% a week. If you are looking for a short term gain use this as a goal.
- Your monetary gain is affected by how much you invest. 5% of a $1,000 investment is not equal to 5% of a $10,000 investment.
- Determine if your profit gain is going to be reinvested or put aside.
- I do not sell for a loss because you should only invest with money in stocks that you are not afraid to loose, or will not require in a short time.
- Take advantage of a limit or stop limit sell to maximize a gain. (Future post will cover limit sells)
- Maintain visibility on a group of stocks (20 max). Study, follow, and read-up on these stocks. Follow their chart, know their average trading level and buy when it is low.
These are a few recommendations for deciding what your profit should be and how to maximize it. If you have other suggestions post in the comments below.