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How To Approach October Trading

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/1/2024 5 min read
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Welcome traders,

This 2024 market is extremely volatile.

That translates to larger trading opportunities for me and my students.

But … If you’re having a tough time with this trading process, understand that you’re not alone.

There were moments in September that were sketchy for even my most successful students. Look at an example below from millionaire trader Bryce Tuohey:

Even Jack Kellogg had a nasty loss in September. You can see his trade notes below:

Source: Profit.ly

Don’t feel too bad for him … He’s still green on the year.

Here’s my main point: Even the best traders struggle sometimes. Don’t be so hard on yourself. Instead, LEARN from your mistakes and vow to grow as a trader.

If you’re consistently losing or you find it hard to recognize the market’s hottest setups, don’t worry. I’ve got a plan to help you turn things around in October.

There’s always another trade around the corner. Keep your head up, and let’s get to work.

The Next Trade Opportunity

Curious about the next trade that I’m eyeing?

Watch my most recent video lesson.

I’m always outlining my next trade setups in my video lessons.

For example … My trade this week on Uxin Limited (NASDAQ: UXIN). Take a look at my notes below:

Source: Profit.ly

I posted my video lesson the day before. On Sunday, September 29. You can see the timestamp below:

Source: Profit.ly

Challenge students have access to ALL of my video lessons.

In the video, I stated that I wanted UXIN to break the previous highs. That was a sign it could squeeze higher.

During premarket hours on Monday, the price spiked to $6.50 … That was our breakout level. And when the market opened at 9:30 A.M. Eastern, the price broke out and squeezed to $7.50.

Take a look at the chart below, every candle represents one trading minute:

UXIN chart multi-day, 1-minute candles Source: StocksToTrade

Key Process For You In October

Most traders fail because they get undisciplined.

I’ve seen traders gain success after they follow my trading setups … But then they get a big head and think that they know better. That’s when they make dumb decisions.

So, for the month of October, make a pact with yourself … Watch all of my video lessons and only trade the setups that I mention.

If the stock doesn’t do what we want, or maybe the market cools down for a few days … Sit on your hands!

Don’t give away money unnecessarily.

Stick to the process in October.

And understand that there might still be losses along the way. Small losses are part of the plan …

Nothing is guaranteed in the market. Sometimes these trades will fail. My process helps traders build positions with risk in mind.

For example, when we see a chart like Xchange TEC.INC (NASDAQ: XHG) from September 30, we can get out before the price action turns from bad to worse.

Take a look below, every candle represents one trading minute:

XHG chart multi-day, 1-minute candles Source: StocksToTrade

If you need a more hands-on approach …

My AI trading bot follows the same process and patterns as me and my millionaire students.

>> Use AI to build smart positions on the market’s hottest stocks <<

Cheers.

 

*Past performance does not indicate future results

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”