How To Lock In Profits In Day Trading

Having a sound exit strategy for each trade you put on is something that many traders surprisingly overlook. Knowing where you’re getting out of a trade before you get in isn’t just some silly cliche. If you’re spending a fair amount of time looking for the best setups throughout the day, doesn’t it also make sense to also have a plan for taking profits and cutting losses?

This week, the Topstep coaches are having a lite discussion on avoiding letting a winning trade turn into a loser and sharing some best practices on getting out of a trade before the markets turn against you.

Lock In Profits

You might want to consider expanding your trading plan to include more strategies for exiting trades. Again, you have an arsenal of tools available to you. From hard stops to trailing stops, time stops, bracket orders, and profit targets, knowing how to get out of a trade at the right time is crucial to both preserving capital and increasing your account value.

Some traders believe you should spend an equal amount of time studying exits and entries, which makes sense when considering that getting in is only half the battle.