Now that we’re into September…
There’s 1 thing every trader should focus on…
Discipline.
Why?
You’ve probably noticed that this week has been slower, right?
Not as many plays…
Lower trading volume…
Slow afternoons…
You’re right, and it’s usually like this leading up to Labor Day.
It’s what I call…
The End of Summer Chopfest
This is the official end of summer on Wall Street. Most big traders and institutional investors are away on holiday.
That means lower volume and choppy trading.
At the same time, everyone is bracing themselves for the September Effect.
Over the past 25 years, the S&P 500 has been negative roughly 55% of the time (the past two years it posted gains).
So, everyone is bracing for it just in case September is weak.
Personally, I’ve been trading a little sloppy.
When your trading is sloppy, it’s not about hitting home runs or how much you can make. It’s really about one thing…
Take a Disciplined Approach
For example, on Tuesday, I took a 3% gain on Sono Group N.V. (SSM) with this premarket dip buy…
Source: Stocks To Trade
SSM, 9/1/26, premarket dip buy.
Nothing huge, right?
It’s kind of sad that this is a win for me right now. But whether I make 3%, 5% or 10%…
I’m focused on getting a solid entry, a solid exit, and sticking to the plan.
Would I have liked it to go more? Yes, but you don’t know how much it’s going to spike.
Maybe I could have been a little more aggressive, but my goal this week is to be disciplined.
It’s not a great place to be, where you’re just trying to be disciplined, but it happens to us all in this market.
Be Meticulous
The crazy thing is, I was thinking that SSM could hold the $3.90s and keep going.
But it was kinda choppy and couldn’t really get above the VWAP, so I took the small gain.
But check out how my thesis played out over the course of the day…
Source: Stocks To Trade
SSM, 9/1/26, 1-min candles.
The circle shows where I traded SSM in premarket.
Now look at the spike right after the open. The afternoon short squeeze was even better.
Where I bought ended up being support, and where I sold was right below the breakout.
Either way you look at it, I was early but on track.
I’m happy with the small win because it emphasizes something I’ve been saying a lot this summer…
Sell Into Strength
You don’t have to try to sell the exact top. Think about where to get out and try to stick to your trade plan.
For example, when I bought SSM, this is what I was thinking:
• The company announced a proposed merger with Sports One (there was a catalyst).
• It was holding the high $3s (it had support).
• I was only looking for a fast spike into the $4s.
And if it didn’t bounce?
Easy…
Follow rule # 1 and cut losses quickly.
Remember, you’re just trying to take the meat of the move.
It’s not an exact science (and it’s not always going to be perfect plays).
You won’t always get giant runners, so…
Practice Locking In Gains Along the Way
I would rather see you take a small position and sell too soon than be scared to trade.
At the same time, don’t overstay or get greedy.
If you want to practice holding winners longer, then sell half. Whatever you do, don’t HODL (hold on for dear life).
Again, if you get off track and get sloppy (it can happen to anybody in this choppy market), just try to be disciplined.
Do not get discouraged if the stock goes higher.
For me, I’m happy when it plays out to a T, even if I’m no longer in the trade (it gives me confidence going forward).
The summer is finally coming to an end, which usually means a shift in the market.
Be ready to adapt to whatever the market gives.
And no matter what…
Start working on your trading discipline today.
How are you doing today? Are you staying disciplined and following the trading rules? Let me know at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
