Core Insights - Traders often sabotage good setups by setting unrealistic profit targets rather than making bad entries [1] - Average True Range (ATR) is a key tool for determining realistic profit targets based on a stock's volatility [3][4] Group 1: Understanding ATR - ATR measures the typical movement of a stock without predicting direction, providing a percentage that reflects daily volatility [3] - For example, an ATR of 2.6% indicates that a stock typically moves about 2.6% daily, regardless of whether it moves up or down [3] Group 2: Setting Realistic Targets - Profit targets should be proportional to a stock's volatility; a target that is 6-7 times the ATR is considered reasonable for swing trades [4] - Targets that stretch beyond ATR norms significantly reduce the probability of success [5] Group 3: Improving Win Rates - Structuring trades with a 3-to-1 reward-to-risk ratio using ATR can enhance the likelihood of achieving profit targets [6] - A 2x ATR directional move may suffice to reach the first profit target, thus improving success odds [6] Group 4: Trading Philosophy - The focus should not be on maximizing upside for every trade but rather on achieving high-probability outcomes over time [9]

Quantum computing stocks jumped Monday, continuing their roller-coaster ride in 2025. Amid their market volatility, investors watching quantum stocks should pay attention to a key IBD metric — average true range. On the news front, IonQ (IONQ) on Monday claimed advances in simulating chemical reactions in collaboration with a top automotive manufacturer. Quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia (NVDA) CEO Jensen Huang, who initially cast doubt over how soon comme ...