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By trading with a profit target, it is possible to assess whether a trade is worth taking. If the profit potential doesnt outweigh the risk, avoid taking the trade. In this way, establishing a profit target actually helps to filter out poor trades. There several benefits to trading with a profit target, some of which were briefly addressed above, but there are also some drawbacks to using them. By placing a stop loss and a profit target, the riskreward of the trade is known before the trade is even placed.