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Target Prices Explained

A Target Price (or Take Profit) is the price at which you plan to sell your stock to lock in a profit. Just as a Stop Loss protects you on the downside, a Target Price ensures you actually make money on the upside.

StoxPilot mathematically calculates three profit targets for every trade:

  • **Target 1:** A highly conservative goal. Usually represents a 1:1 Risk-to-Reward ratio.
  • **Target 2:** A moderate goal. You might sell half your shares here.
  • **Target 3:** A more aggressive goal if the trend is very strong.
  • When a stock hits your target price, you should sell your shares (or at least a portion of them) and put the cash in your pocket. Don't be greedy; nobody goes broke taking a profit.