An NYSE Scalper's Tale - A Trader's Diary

Tuesday, February 28, 2006

Good Riddance! February's Over!

Gross: -$32.36
Net: -$136.42
Loss From Top: 254.41
Trades: 61
Shares Traded: 86872

Stocks Traded Today (net profit/loss):
Walmart (WMT): + $123.20
Disney (DIS): +$49.83
Johnson & Johnson (JNJ): +$47.68
Motorola (MOT): +$38.87
Bank of America (BAC): +$14.30
EMC Corp (EMC): -$7.47
Tyco (TYC): -$50.37
Pfizer (PFE): -$86.87
Hewlett Packard (HPQ): -$108.32
Boston Scientific (BSX): -$157.14

Garbage! That about sums up the month of February. It was another day where most of the moves occurred in the morning and the rest of the day was trendless and flat. On days like these, I usually make a profit in the morning but then as the day wears on, I slowly roll over into negative territory. Actually, I'm surprised I didn't lose more than I did. For most of the afternoon it felt as though every trade I put on ended up being a loser.

I must remember when to trade and when not to trade. Unfortunately today I traded when I shouldn't have. When I start trading many different stocks (as I did today), you know I was trading in an act of desperation to get myself back into positive territory. I think this occurs because of lack of opportunities, hence I begin flipping to different stocks to see if there is anything remotely tradable. And I think I make the mistake of trading a stock even if the probability of it being a winner are small.

Today also lacked any real good trades for me. Any profit I made were small ones (1-cent winner here, 2-cent winner there).

Boston Scientific (BSX) gave me a sound butt kicking this afternoon. At around 1:34PM, the Futures were rather flat, and BSX was also flat. It encountered light resistance (maybe about 100 size on the ask), so I went long and was partially filled for 3900 shares when it broke. BSX moved up a little, but then came back down. I got out of the trade as follows: 4-cent winner (200 shares), 1-cent loser (2000 shares), 2-cent loser (500 shares), 3-cent loser (100 shares), 8-cent loser (300 shares), 9-cent loser (800 shares) ($121 loser before fees). This trade clearly shows the importance of appropriate share size when trading thin stocks. 3900 shares is too big for a thinly traded stock like BSX, where the bid and ask usually have a size of 10 or less. And as you can clearly see, I had to chase the stock all the way down to exit my position.

As you may have noticed, I didn't post last night and I think I won't post again tonight. It's not that I'm getting lazy or anything (I still do my nightly research), but the month of February has been mentally draining and I've been feeling more and more tired as the month wore on, so I'll probably go to bed early tonight so that I can get a fresh start for a brand new month tomorrow.

Next year, remind me to take the month of February off 'cause it's GARBAGE! (I'm kidding of course)

3 Comments:

  • Hey J.C. I heard that NYSE is not public?...What does that mean and am I correct, and what would happen to the price of a fund if they were buying up seats in NYSE?

    By Blogger y2kkani, at February 28, 2006 11:56 PM  

  • y2kkani,

    If a company is public, it means that it has shares (or debt/bonds) that the public can buy and sell. Therefore, all the companies listed on the NASDAQ and NYSE are all public companies. Basically, if I own a "share" of a company, that means that I am an owner of a part of the company. A company goes public to raise capital so that it may expand or use capital as needed.

    A private company is owned by only a few people or one person. It's basically all companies that are not publicly traded.

    The NYSE is currently private BUT, they will go public on March 8, 2006. They will be trading under the symbol "NYX", so in a way it is not public, but will be soon.

    As for "seats"...if you buy a "seat" on the NYSE, all you are doing is getting the right to buy/sell stock on the floor of the NYSE. All those guys you see running around on the NYSE floor have "seats" and may trade for their company, for clients, or from their own accounts. Almost all of the major "houses" have seats on the NYSE (Morgan Stanley, Goldman Sachs, Bear Stearns, etc). I'm not too sure what the effect is on a fund if it claims it is buying up seats in the NYSE. Perhaps the fund is simply saying it has direct access to the NYSE.

    Hope this answers your questions!

    By Blogger J.C., at March 01, 2006 5:05 PM  

  • Outstanding stuff

    By Anonymous QUALITY STOCKS UNDER 5 DOLLARS, at April 11, 2013 12:06 AM  

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