Question:

Do you have a target price technique that you use as a rule of thumb?

My Response:

I don’t believe in price targets..at least those based on the fundamentals which is what analysts use to come up with price targets.  The only time I’m able to guesstimate a price target are at areas of technical resistance.    For example, if I purchase a stock at $10/share, but the 52 week high is at $12/share I can reasonably assume that there will some resistance in the stock there and I’d call that a short term price target.    That might be an area where I take some profit.  I reevaluate my position in a stock every day or two.  I’ll continue to hold as long as it continues to look good.. whether that is one week or one year, it depends on the day to day action of the stock as well as the health of the overall market.   I wish analysts would quit trying to give price targets.. they’re worthless!