How to Set Day Trading Goals

Day trading is thrilling. No two days are exactly the same. But to get the most from your time as a day trader, you need a plan. You need realistic and achievable trading goals.  

How do you set trading goals, though? And how do you keep track of your progress?  

The good news is that setting trading goals is easier than it seems. Below, we’ll walk you through how to set trading goals, and how to keep track of your profit targets.   

What Are Day Trading Goals?

Trading goals are what they sound like: trading targets you want to meet. They’re objectives which keep you focused on your longer-term trading plans.  

Goals should be:  

• Specific enough that you know what you’re aiming for; 
• Measurable, so you can track your success;  
• Achievable, meaning they’re realistic for you; 
• Relevant, so they’re helpful to your overall objectives; and  
• Time-bound, meaning you give yourself a certain length of time to achieve them.  

In other words, goals should be SMART.  

Your trading goals can be short-term, such as day-to-day trading objectives. Or, they can be centered around the weeks and months ahead. It’s wise to have both short and long-term trading goals, so let’s consider what they might look like.   

Short-Term Trading Goals 

Short-term goals affect your daily trading activities. Examples include: 

• Making a certain number of trades per day  
• Taking a break at least once per hour  
• Reading one educational article per day 

Setting goals such as “make $500 per day” is not recommended. There’s no guarantee you’ll make a specific profit in a day – set goals that are within your control.   

Long-Term Trading Goals 

Although day traders focus on price movements within a single trading day, they still need longer-term goals. Examples of long-term goals for day traders are: 

• Get at least eight hours of sleep per night – being well rested could improve your focus!  
• Learn mindfulness and other self-care techniques to help you handle the stress of day trading.  
• Complete a certain number of successful trades within a week, which shows you’re growing as a trader.  

Beginner Trading Goals Examples 

When you’re just starting your journey, focus on learning the basics. Build consistency and make day trading a habit. Get comfortable with what’s involved in trading. For example, beginner trading goals might include: 

• Trade for at least 30 minutes each day  
• Complete a single trade 
• Choose your first market  
• Watch at least one educational video, or read one article, about day trading each day.  

Why Do Day Trading Daily Goals Matter?

Day trading goals matter for the same reason any goal matters. Trading goals: 

• Hold you accountable. If you have goals, you have something to strive for.   
• Keep you motivated. Day trading can be stressful, but having small, achievable goals can stop you feeling overwhelmed.  
• Boost your confidence. As you complete goals, you’ll know that you’re improving as a day trader.  

Now let’s consider six points to bear in mind when setting goals for day trading.   

1. Create a Trading Plan

You’re a day trader. This is your business. And you invest a significant amount of time into it. So, just as startup founders need a business plan, you need a trading plan.  

Your trading plan keeps you accountable and lets you track progress over time. It gives you parameters to work within so that you don’t lose track of your objectives. The plan should include, for example: 

• An overview of your trading goals 
• Your market 
• Market trends and analysis 
• Signals, or ranges, for entering and exiting trades 
• Risk management techniques e.g. stop losses 

Every trading plan is unique. You can adjust it over time as your goals change, but never lose sight of your overarching objectives.  

2. Focus on What You Can Control  

As mentioned, very specific day trading daily profit goals may not be the right option. This is simply because you may not hit a certain target every day, and it doesn’t mean you’re a bad trader. It’s simply the reality of day trading. 

Instead, focus on numbers you can control. So, this isn’t to say you can’t set ranges e.g. a certain percentage profit. Just focus on creating goals which you have control over, rather than goals which the market dictates.  

For example, you might set your own position size and make it a goal to stick to it. Or allocate a percentage of your portfolio to each trade and don’t go above this.  

Discipline, and acting with restraint, are key to being successful in a sector such as day trading. 

3. Keep a Trading Journal 

Trading journals are a cornerstone of your trading plan. They allow you to keep track of your progress on a daily basis. You can refer back to your journal to identify: 

• What’s working in your trading strategy; 
• Where you might need extra support; and 
• How closely you’re following your trading plan.  

Make a point of documenting your trading results in a journal each day. Track your progress over time.  

4. Learn Your Market 

From Forex to indices, there’s no shortage of assets you can trade as a day trader. Before you dive in, though, learn your market. Understand things such as: 

• The size of your market 
• Economic and market trends 
• Performance indicators 
• Impact of news and current affairs on stock performance 

The more you understand your market, the easier it will be to avoid losing trades.  

5. Establish Your Entry and Exit Rules  

Every day trader should have entry and exit rules for each trade. These rules should be specific e.g. you will enter when a price reaches a certain average. Or you’ll exit when you see a certain pattern emerging.  

Entry and exit rules are key to mitigating losses as a day trader. Devise your own rules carefully as part of your overall trading goal plan.    

6. Learn Risk Management 

Trading always involves risk. But winning trading strategies all have one thing in common: risk management.  

Be clear about your tolerance for risk and don’t let emotions cloud your judgment. If you suspect that emotions could impact your trading, make it a goal to learn techniques for self-restraint. And if you need advice on mitigating risk, learn from other traders in the community.  

Simulated funded accounts, such as those offered by us, are an ideal way to practice trading.  Learn more by contacting us!  

Set Trading Goals With Maven Trading 

Now you know how to set trading goals, it’s time to start trading. And that’s where we can help. 

At Maven Trading, we offer promising day traders the chance to hone their skills. Refine your trading strategies and learn how to make a profit with our simulated funded accounts. Just complete a challenge and get verified first. Or choose an instant simulated funded option and get started right away.  

The choice is yours – after all, it’s your trading journey! Make your choice today and start day trading.