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

Wednesday, March 29, 2006

Making Money Shorting On An Up Day?

Gross: +$506.46
Net: +$439.37
Loss From Top: 0
Trades: 44
Shares Traded: 60810

Stocks Traded Today (net profit/loss):
Corning (GLW): +$331.91
Citigroup (C): +$85.83
Home Depot (HD): +$81.01
Verizon (VZ): +$33.81
General Electric (GE): -$7.21
JP Morgan (JPM): -$13.22
Pfizer (PFE): -$72.75

Today is how a day should look like if I stick to my rules and if I trade when I'm supposed to trade. Nothing really special about today - just fought really really hard to enforce some real discipline on myself today.

I think there was probably only one mental lapse that occurred today. Like the previous couple of days, I was up close to $300 by about 10AM, so I took the rest of the day easy and traded cautiously (with smaller number of shares).

From the totals, you can see I made some serious dough on Corning (GLW) today. First good trade on it happened at 10:01AM. At that time, GLW had just started downtrending when it reached the $27 level. The Futures had also just started to downtrend. Just then, the Futures started tanking, making new intraday lows. The $27 level was about to break so I tried to go short 4000 shares, but I only got 2100 shares. GLW then tanked really really hard so I took my profit as follows: 3-cent winner (500 shares), 10-cent winner (600 shares), 17-cent winner (1000 shares) ($245 profit).

Next good trade occurred on Home Depot (HD). At 2:03PM, HD came down to the $42.95 level. It had about 800 size on the bid and when it broke, I went short 4000 shares. Took my profit as follows: 1-cent winner (1000 shares), 2-cent winner (2000 shares), 4-cent winner (1000 shares) ($90 profit).

Last good trade happened again on Corning (GLW) at 3:40PM. At that time, there was a big buy order moving up on the bid (size of about 1000 kept moving up on the bid). GLW's price then stopped and started challenging the size and when the size broke, I went short 2000 shares. Got out as follows: 4-cent winner (1000 shares), 5-cent winner (700 shares), 6-cent winner (300 shares) ($93 profit).

One trade that I know I shouldn't have put on was on Pfizer (PFE). Once again, the Level 2 decieved me and I went short 6000 shares when I thought an important level was about to break when the Futures began tanking. Initially, it looked like a good trade - the size on the bid was drying up and just when I thought it would break, more size suddenly appeared on the bid. I quickly got out for a 1-cent loser for a $60 loss. Good thing I did get out when I did - PFE continued going up! Guess what - BACK ON THE BLACKLIST AGAIN PFIZER!!!

I noticed that all my big winners were all shorts. I know there were many times today I wanted to get long (and they would have been very profitable), but unfortunately I was not fast enough to get shares (there were at least 4 trades in which I was not fast enough to get long).

As I said earlier, I could have made more today if I had traded with my regular share size, but because the last few days I lost profits from the morning, I was more conservative than usual in the afternoon today.

Let's see what I can do during the last 2 days of March!


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