Target Levels

Question:

Great presentation last night (Wednesday's webinar), as a newbie I found it very useful.
One area I am having difficulty with is exit strategy. I find that my gains turn into small wins
or even losses. In the webinar you mentioned exiting in three stages, do you always do this?
If so how do you exit if the move fails to make target 1, or makes target 1 but not target 2,
or target 2 but not target 3?

Answer:

I do often exit in 2 to 3 stages, however, this is certainly not always the case and I often will add back into positions in which I have taken partials as a continuation pattern forms. The real trick to this is to identify the larger trend placement and pace action. Depending on this traits, there will be the potential for larger gains in certain cases than in others.

Unfortunately there is no quick way to go into details on this.

You will find the support and resistance sections dealing with equal moves to be particularly helpful for most circumstances (referencing the CD course he purchased and was discussing).

The greater the momentum out of a setup, the greater potential it will also have.

Also, the less resistance, the higher the odds.

If the overall market is also favoring the direction of the setup then the odds will be higher as well, unless it is something like energy or oil which can trade against the larger market.

These are some of the basic things I will look at to determine not only what a likely target will but, but also how willing I am to hold part of the position past an initial resistance level to hit the targets. I hope this helps to some degree!