Should Traders Set Daily Profit Targets? And Their Impact on Long-Term Results

A question novice traders often ask themselves is "How much profit should I make today?" or "If I've made 500 baht already, should I stop or keep trading?" Setting daily profit targets seems like a good way to control your trading, but in reality, it can be a trap that leads you to make poor decisions and miss better profit opportunities.

This article will analyse how setting daily profit targets affects trading behaviour, when you should and shouldn't use them, and how to use statistical data from Thaifxbook to find the approach that truly suits your trading system.

Advantages of Setting Daily Profit Targets

Having a clear goal each day helps some traders feel more directed and in better control of their trading. Especially for traders who are just starting out or have problems with Overtrading, setting a rule like "stop after making 2% today" helps prevent trading too much and risking giving profits back to the market.

Additionally, daily profit targets help create discipline in closing the screen and resting, which is important for long-term mental health. Many traders suffer from trading continuously all day until they become exhausted and make progressively worse decisions. Having a target helps you know when to stop.

Suitable for Which Type of Trader

Setting daily profit targets is suitable for traders who:

• Trade using scalping or day trading, opening and closing multiple orders per day
• Have problems with overtrading or not knowing when to stop
• Need to generate daily income for everyday expenses
• Have a trading system that gives frequent and consistent signals

Disadvantages of Daily Profit Targets That Traders Often Overlook

The biggest problem with setting daily profit targets is that it makes traders make decisions based on the target they've set, not the opportunities the market presents. When you've reached your profit target, you might close an order that's continuing to run in profit, or stop trading even though there are still several good signals.

Conversely, if you haven't reached your target that day, you might force yourself to keep trading even though there are no good opportunities, or worse, try to "chase" the target by increasing lot size or trading without clear signals. Eventually this becomes Revenge Trading without you realising it.

Example from Real Statistics

Imagine a trader who sets a target of 1,000 baht per day. One day he opens just 2 orders and makes 1,200 baht profit, but there are still 3 more good signals. He chooses to stop because he's reached his target. Meanwhile, those 3 signals end with a combined profit of 2,500 baht. He missed a 2,500 baht opportunity because he was fixated on the number he'd set.

Another day, he loses 300 baht in the morning. He forces himself to keep trading to chase the 1,000 baht target. Eventually he trades without a plan, loses another 1,800 baht, totalling a 2,100 baht loss that day. If he had accepted the 300 baht loss and stopped trading, the damage would have been 7 times less.

Alternative: Focus on Process Rather Than Daily Results

Most professional traders don't set daily profit targets. They focus on following their trading system consistently and let results accumulate over the long term. This concept is called "Process-Oriented Trading", which is the opposite of "Outcome-Oriented Trading".

Instead of asking "How much profit did I make today?", ask yourself:

• Did I trade according to plan today?
• Did every order I opened have clear reasoning according to my system?
• Was risk management in line with the rules I set?
• Were there any orders where I decided based on emotion?

If you follow the correct process consistently, profits will follow naturally in the long term. Even if some days you lose, if your system has positive Expectancy, time will work for you.

Use Trading Statistics to Find the Answer That Suits You

Instead of guessing whether you should set daily targets or not, use statistical data from your own trading to decide. If you use Thaifxbook connected to your MT5 account, you'll see these important data points:

1. Look at Profit Per Day and Daily Gain/Loss Volatility

The Profit Per Day figure tells you how much profit you make on average per day. If this figure is highly volatile (some days +5%, some days -3%), setting daily targets may not be suitable, because the nature of your system doesn't produce consistent results every day.

But if the figure is fairly consistent (e.g. +0.5% to +1.5% almost every day), setting daily targets might help create discipline.

2. Analyse Trade Distribution by Day

See which day of the week you profit best and which days you typically lose. If you find that Wednesday and Thursday give the best results, but Monday typically loses, you might adjust your targets to be flexible by day, or stop trading on days when statistics say it's not suitable.

3. Check Average Holding Time

If your Average Trade Duration is several hours long or overnight, setting daily profit targets may not make sense, because one order might not close within a single day. You should focus on weekly or monthly results instead.

Balanced Approach: Set Flexible Targets

If you feel that having targets helps create motivation and discipline, but don't want to fall into the trap of forcing yourself, try this middle-ground approach:

Set Range Targets, Not Fixed Numbers

Instead of setting a target of "must make 1,000 baht per day", set it as "800-1,500 baht is considered good" or "1-2% of capital is considered passing". Giving a range makes you more flexible and doesn't force you to overtrade to chase a number.

Set Conditional Targets

For example, "If I make 2% profit in the morning, stop trading, but if I haven't reached 1%, continue trading only when there are high-quality signals" or "If I lose 1% in a day, stop immediately, don't try to chase it back". This approach helps prevent Revenge Trading and unnecessary trading.

Prioritise Quality Over Quantity

Instead of setting a target of "must make 1,000 baht today", set a target like "today I'll trade only signals with a Risk-Reward Ratio of 1:2 or higher" or "I'll open no more than 5 orders, and every order must meet the set criteria". Focusing on quality instead of results makes you make better decisions in the long term.

Warning Signs That Daily Profit Targets Are Harming You

If you encounter these signs, it shows that setting daily profit targets is doing more harm than good:

• You feel pressured or stressed every time the day is ending but you haven't reached your target
• You often trade at the end of the day without clear signals, simply because you want to reach your profit target
• You close orders that are in profit prematurely because you're afraid they'll exceed the target then come back to loss
• You stop trading immediately when you reach your target, even if there are good opportunities right in front of you
• Your Equity Curve goes up and down inconsistently, showing you're forcing results instead of letting the system work

If you encounter these signs, try trading without daily targets for 2-4 weeks, then compare the results. You might find that overall profits improve and your mind is more at ease because you don't have to chase numbers every day.

Conclusion: The Answer Depends on Your System and Personality

There's no single answer to whether traders should set daily profit targets. It depends on:

• Your trading system (day trading or swing trading)
• Your personality traits (need clear structure or prefer flexibility)
• Your financial goals (need daily income or long-term growth)
• Statistical data from your own trading

The most important thing is: don't let daily targets force your decisions. If the market doesn't give opportunities that day, you don't have to force trades. If that day has more opportunities than usual, you don't have to stop just because you've reached your target. Use statistical data from Thaifxbook to help analyse your trading patterns, then find the approach that truly suits you, not blindly following others.

Remember that a trader's true goal isn't to make profit every day, but to make profit consistently over the long term, and keep your mind strong enough to continue trading for a long time.