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Stock Exit Strategy Planner

Helps plan potential exit points based on your target return percentage or a trailing stop-loss percentage from the highest price reached. For illustrative purposes only.

Enter Your Stock Details

Enter the peak price the stock hit after you bought it.

Strategy updates automatically.

Exit Strategy Status

Target Sell Price

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Trailing Stop-Loss Price

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Current Status:

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How It Works

This tool calculates two potential exit points based on your inputs:

  • Target Sell Price: The price at which your desired percentage return (Target Return %) from your Buy Price is achieved.
  • Trailing Stop-Loss (TSL) Price: A dynamic stop-loss level calculated as a percentage (Trailing Stop-Loss %) below the Highest Price the stock reached since you bought it. This helps protect profits as the price moves up.

The status indicates whether the Current Price has hit your target, fallen below your TSL, or if you should continue holding based on these rules.

Using Exit Strategies

  • Profit Target: Helps lock in gains when a pre-decided objective is met. Prevents greed from potentially turning profits into losses.
  • Trailing Stop-Loss: Allows you to let profits run while protecting against significant reversals. The stop-loss level automatically moves up as the stock price reaches new highs.
  • Combination: Some investors use both – setting a target but also using a TSL to protect gains if the target isn't hit and the price reverses.
  • Not Foolproof: Market gaps (sudden price jumps) can cause trades to execute below your stop-loss level. These are tools to aid decisions, not guarantees.

Frequently Asked Questions

What is a Trailing Stop-Loss (TSL)?
A TSL is an order that adjusts the stop-loss price as the market price of the stock moves favorably. It's set at a certain percentage or amount below the market price (or highest price reached). If the stock price rises, the TSL price rises with it, locking in profits. If the stock price falls, the TSL price stays fixed, and the trade is exited if the price hits the TSL level. This calculator determines the *current* TSL level based on the highest price you provide.
Why use the 'Highest Price Since Buy'?
A true trailing stop-loss "trails" the peak price achieved. If you only use the current price, the stop-loss would constantly move down when the price dips, defeating the purpose of locking in gains from a higher point. You need to know the highest point the stock reached to calculate the correct trailing level.
What's a good Target Return %?
This is highly subjective and depends on your investment style, risk tolerance, stock volatility, and market conditions. Some short-term traders might aim for 10-20%, while longer-term investors might aim for higher returns over several years. There's no single "right" percentage.
What's a typical Trailing Stop-Loss %?
This also varies. Common percentages range from 5% to 25%. A tighter stop (like 5-10%) protects profits more aggressively but might trigger exits on normal volatility. A wider stop (15-25%) allows more room for fluctuation but risks giving back more profit before exiting. It depends on the stock's volatility and your strategy.
Does this calculator place actual orders?
No, absolutely not. This is purely an illustrative planning tool. It calculates potential exit levels based on your inputs. You need to place actual sell orders (limit orders for targets, stop-loss or trailing stop-loss orders) through your stockbroker's platform.
What if the stock gaps down below my TSL price?
A standard stop-loss order (including trailing) becomes a market order once the trigger price is hit. If the market gaps down significantly overnight or during trading halts, your sell order might execute at a price substantially lower than your calculated TSL price. This is known as slippage risk.

Disclaimer

This Exit Strategy Planner is for informational and educational purposes only. It provides calculations based on user inputs and does not constitute financial or investment advice. Stock market investments involve risks, including the potential loss of principal. Exit strategies like target prices and stop-losses are not guaranteed to execute at the desired price due to market volatility and gaps. Always do your own research and consult with a qualified financial advisor before making investment decisions.