InvestorQ : Do I have to set the target price also for intraday trading?
Maniish Lofar made post

Do I have to set the target price also for intraday trading?

Mary Joseph answered.
3 years ago
Just as the entry price is important in intraday trading, the exit price or the target price is also equally important. If you buy Tata Motors for intraday at Rs265 then you must set your price target based on charts. If you find that momentum will take the stock to around Rs.270, then try to put your target price at around Rs.269; slightly below the expected price that you expect the stock to move. Of course, you need to be flexible and change the target price based on market conditions at that point of time. What is important is that your target price is set at the time of initiating the trade and also you put it in the system. Don’t wait for the stock to move.
Your target price will depend on two additional factors. Firstly, what is your cost of intraday trading both ways? For example, in the above case, if your cost including brokerage and other costs is Rs.1 on both legs then your target must be well above 266 to see that you make a profit on the trade. After all, you are taking a risk so you need to get paid for the risk. Secondly, look at your risk-return trade-off. For example, if your stop loss is Rs.2 then your target should at least be Rs.4 higher. Don’t keep Rs.5 stop loss and Rs.4 as a target. That is not smart intraday trading!