Thursday, December 31, 2015

How to Sell and Set Target Prices for Dummies

Are you tired of  people asking you for a stock's TP?
Or maybe you yourself are tired of asking others for stock TPs?

Whatever reason you may have, Fear not. 

For here are 3 easy steps to get a stock's target price.

*There are many variations as to how TPs are calculated. 
But this is the basic template we use in ZFT.

Step 1 : Find a stock 

Most public participants would usually pick stocks that are the talk
 of the town. Hot stocks that rally like there's no tomorrow. Or 
probably stocks that were once hot and trying to get back
to the limelight.

For this example let us look at ION.

 Oh such memories we all had on this one...

Step 2 : Find recent
 Support and Resistance Levels

Assuming market interest has died down but the stock still has 
good trade potential, look for the recent and immediate support
and resistance levels.

For this example, we take 2.63 as the immediate resistance 
and 2.04 as the immediate support.

Step 3 : Hype Calculate

Calculations aren't that hard.

Target Price = (Resistance - Support) + Resistance

You can download this TP Calculator 
I made for you guys if you wish.

There have been many instances wherein the TP gets hit exactly at
 the sweet spot. But there are also times when the prices 
overshoots or don't even reach the intended TP price.

We offset these instances by tranche selling into 
a 4% buffer zone from the TP level.

Example : 

If I had 300k Shares on ION, I would sell in 
3 Equal Tranches at 100k each.

1st Tranche Sell : Low End Buffer (3.09)
2nd Tranche Sell : High End Buffer (3.35)
3rd Tranche Sell : At Target Price (3.22)

If I had more shares, I'd have more tranches.

In this case If I were a TP (Target Price) oriented trader, 
as opposed to being a TS (Trailing Stop) oriented trader, 
I would sell my shares double to half the average bid/ask 
volume per fluc.

Board as of Dec 29, 2015 (Market Close)

So I'd sell 200k - 50k ION shares per Fluc until I run out.
By doing this, I wouldn't cause sudden price spikes and panic.

Remember to always manage expectations. It's better to expect less
 and hit your target than to expect tapos papaasahin ka lang nya at
 iiwan sa ere. #hugot

(darn you berlin-artparasites)

But be wary of Target price computations. Not all materialize.
And if ever you see someone giving out TPs that are too good to 
be true or out of this world, ask them how they got it.

Trust me, you wouldn't want to be holding stocks that are being
 hyped from computations that are derived from smoking pot.

Again, there are many ways to compute target prices.
This is just ONE of the many.

Happy Hunting and Hype Responsibly!


  1. "I would sell my shares double to half the average bid/ask
    volume per fluc." - pwede po paexplain? thanks! Happy New Year po!

  2. ZF sa paggawa mo ng support & resistance anong gamit mo sa chart arithmetic o logarithmic?

  3. ION will also be the 2016 stock of the year soon :)

  4. currently gaining momentum si ion(AOTS+ZS). hehe

  5. hi ZF broken link po yung TP calculator..