3/5 How To Trade Day Trading Strategies: Stop Loss And Profit Target

This article is going to be very specifically aimed on practice tips where to exactly put your stop loss and profit target according logical zones for each one. We will also show how to increase risk reward ratio with few tips personally used by me and lots of others traders.

Those tips are only useable for people who backtested strategy accordingly from last article and collected at least 150 trades and wrote down each one into trading journal with specifics like date, time, size of PT and SL in ticks, RRR and more.

Stop loss

The most important aspect in trading. In use to get out from trades and what’s even better – size of stop loss in proportion of profit target measures and determines potential RRR.

Trading without stop loss is worse than gambling to be honest. In markets you never have 100% probability of win trade so hoping next trade is going in your way and not using stop loss is kinda naive, doesn’t it?

Traders who do not use stop loss increases risk and even hypothetically may delete whole account if any news brigs enourmous volatility in opposite direction.

  • FOMC
  • GIT
  • Ripped
Rule 1 – always use stop loss and doesn’t depend if trading demo or real.

When you enter a trade, how would you specify how much % of capital are you willing to risk without using stop loss? There is no other way.

The size is of stop loss is also useable in order to know if the trade is acceptable for you especially your capital. I’ll show how it looks in practice.

Day trading strategy

Note: As you can see, trendlines may add you an edge into your trading. I personally never trade against trendline. Link the highs in short, wait for next „touch“ of TL and then put the trigger. The photo above shows lots of from my trading system, do you like the simplicity and logic? I do.

Tip 1 – Set your SL above last swing high and your stop loss to last swing low (in downtrend).

Step by step:

day trading strategyy

  • once the price is close to the trendline – we are waiting for the „touch“ and then we look for logical place where to put our stop loss. Profit target is on last swing low in downtrend.


Tip 2 – Set your SL on the high of „momentum bar“

Step by step:


day trading strategy livingfortrading

  • Strong resistance zone was touches three times and market still made higher low – long
  • Once price broke up resistance, we put trigger on the close of „momentum bar“ as you can see above
  • Where to put your PT? At least 3 times further in opposite of SL.

The result: 

day trading strategyyy

Note: I know, trading in historical chart is easy and everyone can make it, but I just wanted to show you the power of this kind of SL.

Those two tips are the one I trade. I do not trade double tops or candlestick patterns. I like when things bring me logical view.

I recommend to you build your strategy on the same principles as I do due to simplicity and high RRR – risk 1% to receive 3%.

If you are still struggling, email me on livingfortradingblog@gmail.com to could help you.

And sorry for long time no post, I was on winter vacation in Australia.