When to call it a day (for the day)

Beginner Questions
1

Hello All,

I hope everyone is doing well .

My question to all the more experienced day traders out there is should you or do you set yourself a profit limit for the day? Like an amount or %gain that will stop you from placing anymore trades for the day.

Is it normal to continue chasing profits for the whole day or should I perhaps stop when I hit 1% for example.

Thanks

2

Hi, so it all depends on your strategy. If you are a discretionary trader then you may stop when you hit a certain % for the day or week. If you have a mechanical system then you may need to take every setup for it to be profitable in the long run.

I aim for 1% a week and if I hit it, I stop for the week. It works for me.

3

Perhaps try to journal your behavior and trading results, especially on days where you are making a lot of profit. By doing so, you get to know your thresholds.

It depends on what you can handle.

For some traders, they act like idiots after a few big wins and some feel the same.

For others, it’s a chance to practice their golf swing then go trade again the next day as if nothing happened.

Then you have those that trade as much as they can when the market is hot and then when the market is indecisive, they call it a day.

But it depends on how well they know their own behaviour when certain things begin to occur.

4

Better to fix targets otherwise one ends up over trading and you might as well go the extent of losing all the profits you earned. So better be satisfied with your daily targets according to me. Greed is dangerous.

5

Really depends on what you are doing for my main day trades I only look for 1 trade a day but when helping others who want to scalp (I dont recommend as a hard way to earn a living) I tell them my mantra SCORE SCORE STOP I explain it in this scalp vid