Hey everyone, Ross Cameron here! This Monday wraps up September and like every other month, I’ve locked in my numbers. I’m done trading for the day, and it’s time to look ahead towards October. Honestly, I love this time of year. Historically, the fall months have been a perfect time for me to capitalize on market momentum. Even though summer trading was surprisingly solid, fall is where I really see more opportunities, thanks to increased volatility and more headlines driving the market.
Let’s dive into how the last day of September went down, and break down the key trades of the day.
Locking Up September
With September in the books, I’m happy to say it’s been a pretty good month overall. I closed out today with a green day. Nothing huge today, but a green day is still a win. I traded four stocks, and yep, I walked away without any red ticks on the board. Today’s performance is more of a base hit than a home run, but that’s still solid for the last trading day of a month. You don’t always need to swing for the fences in day trading.
Now, as for the overall monthly numbers – this month had plenty of opportunities despite it being summer, which is usually slower. Fall’s up next, and historically, October, November, and December have always been strong months for me. The shift in market momentum isn’t just something I’m hoping for; it’s something I’ve experienced before. The calendar’s changing, and I’m locked in, ready to hit October running.
Excitement for the Fall
You can ask any day trader – fall season brings a lot more market action. There’s more news, more catalysts, and just more movement overall. Historically speaking, I’ve performed better during the last quarter of the year. It could be because news just flows a lot more, with companies reporting earnings, political shifts, and other events that drive volatility into the market.
After a decent summer, I’m pretty optimistic about what the fall holds. If the summer was good, the fall will likely be even better with more to trade on. You can feel the market start to heat up, and with Chinese stocks leading the charge today, it’s clear that the momentum is already building.
First Trade of the Day
To kick things off, my scanner was set on ZCMD, one of the top after-hours gainers. I’d already flagged it the night before in my weekly watchlist. Now, I usually stay away from holding trades over the weekend unless it looks really juicy, mostly because of the added risk. But ZCMD was up in after-hours on Friday, so I kept it on my radar for Monday morning.
When I pulled up my scanner this morning, ZCMD was back as the leading stock. What caught my eye was that, though there wasn’t a specific news catalyst for this stock, ZCMD was still getting a boost. Some of the movement could’ve been related to positive news about economic stimulus measures in China. That kind of sympathy move can give a stock some extra fuel for day trading, especially with other Chinese stocks making moves.
Right as the market started to heat up, volume spiked. Retail brokers opened up at 7 a.m., and bam – volume poured into ZCMD. I didn’t jump right away. I was waiting for the right entry. The stock was showing a micro pullback, so I entered with 7,500 shares at $2.48. The first breakout move came when the stock pushed past $2.50. As retail traders piled in, I added 5,000 more shares to my position at $2.55, pushing my total to 12,500.
My exit point came just shy of the pre-market high, at around $2.69. It wasn’t a massive trade, but it locked in $1,600 in profit. I wasn’t risking too much here, just a couple of hundred bucks since the stock wasn’t swinging wildly. That first trade gave me a nice cushion to work with for the rest of the day.
Observing Market Patterns
After locking in that $1,600 on ZCMD, I noticed it started forming a head and shoulders pattern, which is a sign the momentum was dying down. Rather than pushing my luck, I stepped back. In day trading, it’s important to recognize when a stock has played out, and for me, ZCMD was done.
Recognizing patterns like this helps avoid unnecessary losses. Knowing when to stop is just as important as knowing when to get in. I then shifted focus and waited for the next setup.
Second Trade of the Day
It didn’t take long for EMKR to pop up on my scanner, and when I pulled up the chart, this thing was flying. It spiked from $1.20 to around $3.50 in mere seconds. I jumped in on a quick dip with 5,000 shares at the $3 mark. My plan was to hold to see a break above $3.50, but then some news broke – a buyout offer.
When it comes to buyout offers, the smart move is to get out. Usually, stocks don’t go much higher than the buyout price, and I figured this trade had run its course. I closed out my position at around $3.40 for a quick $1,000 in profit. It was a classic case of reacting to headline news and knowing when to bow out.
Challenges with Buyout Offers in Trading
Buyout announcements can be tricky. You see, when a buyout offer comes in, the stock price typically hovers close to the offer price. The company gets an offer, let’s say at $3.80 per share – that’s what the stock spiked toward this time. The risk is that if the buyout doesn’t go through, share prices can plummet back to their pre-announcement levels.
I was lucky to get out near the top, because shortly afterward, the price dropped back to around $2.75. It goes to show that even though buyouts might seem like a safe bet, they can be risky. I don’t regret playing it briefly, but it’s a reminder to always assess both risk and reward in these kinds of trades.
Third Trade of the Day
Next up on the list was XHG, another Chinese stock riding the wave of the day’s broader Chinese market momentum. This one was a rollercoaster. It originally popped up from $1.40 to around $1.75. I jumped in at $1.65 and managed to ride it up to $1.80 before taking profits. But the volatility on this stock was crazy.
The second time, I bought a dip back at $1.60, seeing what I thought was a double bottom, but only managed a small profit before it dropped again. In total, I traded XHG several times today, but the volatility made it difficult to lock in large gains. However, in the end, I was able to walk away green.
Managing Trade Volatility
When you’re trading a stock like XHG, the key is staying nimble. These cheaper stocks can move incredibly fast in either direction, especially when they spike. The trick is to lock in profits when you see them and avoid getting caught on a sharp pullback.
By the time XHG had made its big upward moves, I was already scaling out because the stock could easily whip in one direction in seconds. A 40-cent move on a sub-$2 stock can make the difference between walking away green or giving back your day’s profits. There’s a lot of psychology at play in moments like this, and the last thing you want to do is overstay your welcome.
Trade Analysis and Metrics
Reflecting on the weeks leading up to today, my trading had a shift in volume and accuracy. Last week I took fewer trades, about 76 in total, and had an accuracy rate of 82%. My profit-loss ratio was just over 3:1, which is a sweet spot I like to aim for. The week before, I had over 200 trades but saw a dip in accuracy and made less money.
It’s a classic example of “less is more.” Fewer, more thoughtful trades can often yield better results than over-trading. The data is clear – when I focus on accuracy and wait for A+ setups, I end up walking away with more profit and less stress.
Reflection on XHG Trades
Looking back at the XHG trades, several entries and exits helped me grab some quick wins, but they also drained my attention and energy. You can easily get sucked into playing these high-volatility stocks. But as I always say, discipline is key. Walking away when you’re up is something every solid day trader should practice.
Could I have left some money on the table? Sure. But there’s always another day to trade. Ending in the green is what matters.
Planning for October
As we move into October, I’m keeping an eye on how breaking news will drive pre-market action. The best trades happen when you strike early, so I’ll be aiming to lock in some wins pre-market and ride the strongest pre-market movers into the open.
Ultimately, my strategy is to stay aggressive when I see strong momentum, especially when it’s confirmed by news or catalysts. In day trading, you have to act fast but stay sharp. There’s too much at stake to hesitate or get greedy.0
Final Thoughts
Today was another good day to close out the month. ZCMD, EMKR, XHG – each trade had its risks and rewards, but I walked away green, and that’s always a win. As I head into October, I’ll stick to my game plan, stay disciplined, and focus on following the momentum where it takes me.
Take it slow, manage your risk, and I’ll see you guys bright and early tomorrow morning!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.