Having a fixed percentage of profit brings meaning to the trade. First, we don't know the logic behind placing the target, but gradually we will find the logic behind fixing the target. In the long term, it will increase the accuracy of prediction.
Expecting return a way more than the index average can be of greed influence. Index do gives a handsome return that sometimes even surpasses majority of the stock performance. But it is also true that index may stands still for some years. Yet in the very long it is way better than FDs.
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