I have been doing this for nearly 25 years and I try to keep it simple. I look for two things:
1) a catalyst that can send the stock higher or lower and
2) a high potential technical signal
Catalyst
NKLA is in the EV space and right now there is a ton of money flowing into this space. They also have a watered-down deal with GM who has just announced they are going full throttle in electric vehicles. This alone should send the stock higher.
Technical
7-day MA average crossed over signaling a buy and I am targeting a move above the 200-day MA to $25 (representing approx. a 17% move). At that point you can close the position outright or take half off and let the rest ride.
1) a catalyst that can send the stock higher or lower and
2) a high potential technical signal
Catalyst
NKLA is in the EV space and right now there is a ton of money flowing into this space. They also have a watered-down deal with GM who has just announced they are going full throttle in electric vehicles. This alone should send the stock higher.
Technical
7-day MA average crossed over signaling a buy and I am targeting a move above the 200-day MA to $25 (representing approx. a 17% move). At that point you can close the position outright or take half off and let the rest ride.
Trade closed: target reached:
I will be closing half the position and let the profit ride for a while
Trade closed manually:
closed trade completely