Targets

To target, or not to target, that is the question.  An argument can be made that it is better to let a trade run until it does something “wrong”, as opposed to getting out at a specified target.  On the other hand, a stock will often reverse when it hits an obvious target, so it might be good to get out there.

It really is a question of style.  Targets can be used in several ways :

In the initial risk / reward calculation

As a spot to take part of a position off

As a spot to take all of a position off

As a gauge to see how well a trade is working

Some areas which make good targets :

Prior support / resistance (overlapping bars or price pivots)

Floor trader pivots

VWAP

Widely watched moving averages

I tend to be all-in / all-out, so I set a limit order at my target point.  If the trade looks like it will blow through there, I might increase the target.  If the trade is acting poorly, I might reduce the target.  But that’s just my style, your mileage may vary.