# How Do I Calculate My Profit Goal?

One of the most frequent questions I get from my mentoring students is how to calculate where to exit a trade for your profit goal. Some trades have margin while others don’t and some trades are debits and some are credits.

This can all lead to confusion as to what a closing order should be.

Ignoring commissions for this example, if you have a trade that costs \$250 debit and the margin is \$1000 what would you want to sell it for to make 10%?-
The trade cost you \$1250 so you need \$125 (\$1.25) orgasm retarders more than you paid you make 10%. So \$2.50 you paid + \$1.25 is \$3.75. \$3.75 is your sell price for 10% profit.

## Credit and Margin

If you have a trade that gives you a \$250 credit and the margin is \$1000, what would you want to sell it for to make 10%?-
\$1000 in margin minus \$250 target = \$750 which is the cost of the trade.

So you need to buy back this credit spread for \$75 or .75 less than you paid for it. So if sold at a \$2.50 credit, the closing target is \$1.75.

You can simply add in your commissions to the cost of the trade and set your closing order appropriately.  I hope this helps traders with this frequent question.

Mark Fenton

mark@sheridanmentoring.com