• Stock trading courses and applications to shape you into a more 'informed' and confident trader.

      Perfect for all levels of experience.

      Discover the power of trading with responsible leverage through our options courses and applications.

      Perfect for intermediate or advanced traders.

      Receive tailored, one-to-one coaching and guidance from a professional trading mentor.

      Perfect for all levels of experience.

      Supercharge your stocks or options trading journey at one of our live events.

      Perfect for all levels of experience.

  • Blog

Setting the Conservative P1

The markets are nervous about an imminent raising of interest rates from the Fed, which interrupted an otherwise steady market yesterday.  

One of the key skills you need as a trader is knowing how to set your profit targets.  Typically I say make the first target (we call it P1) conservative.  

In the case of MYL, whose setup I’ve liked recently, you had a choice between an aggressive or more conservative P1 target.  It is at this level where you can seize control of your trade and put it into a virtually riskless state, so it is vitally important.  

With this particular trade, by taking the flag pole of the bull flag from where it started to gap up on 13 November, you would be setting a conservative P1, which we always round down, meaning you’d have just been hit yesterday before the stock reversed back into the consolidation area.  I know a few of you set your P1 around 42.42 – 42.46, which right now looks very smart, and you’ll be feeling happy with yourselves! 

If you’d taken the flag pole of the bull flag from the low on 12 November, you would be setting a more aggressive P1, which didn’t get reached yesterday, so for you it’s a tougher ride.  

Watch today’s video where I go through it in some detail.

PS. If you’re interested in any of our OVI trading services for stocks or options such as a fast-track mentorship or workshop event, book yourself an appointment here to speak with us. Many of our members aren’t aware of all the services we offer to help you become a more ‘informed’ and confident trader with the OVI. Remember, everyone is an individual, and we ensure that we can cater to you and your particular needs.

Follow Us On

Related Posts

WHAT'S YOUR TRADER PERSONALITY?

Take our 30 second quiz to discover your trader personality and find out what trading style suits you best!