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

Wednesday, March 08, 2006

Wanted: Patience

Gross: +$764.10
Net: +$676.76
Loss From Top: 0
Trades: 43
Shares Traded: 88310

Stocks Traded Today (net profit/loss):
Bell South (BLS): +$304.74
Micron Tech (MU): +$153.61
Hewlett Packard (HPQ): +$139.79
Sprint-Nextell (S): +$105.67
Pfizer (PFE): +$21.93
Boston Scientific (BSX): -$48.99

Does anyone out there have some patience that they would like to borrow to me? Today should have been a $1000+ day, but because I'm lacking that key ingredient, today's numbers were the result.

Aside from big losing trades, the thing that gets me really upset is when a good trade is cut short because of my impatience. I end up taking a 1 or 2-cent winner when it could have been a 10-cent winner (or more).

Today there was a trade on Micron Tech (MU) - I had 4000 shares long, got out for a 2-cent winner, could have been a 10-cent winner (missed out on $320 profit).

Then there was a trade on Bell South (BLS) - I had 2600 shares long, got out for a 1-cent winner (400 shares) and 3-cent winner (2200 shares); this trade could have been at least a 10-cent winner (missed out on $190 profit). I also missed out on another $800 (see below for the trade of the day).

On Hewlett Packard (HPQ) I was long 5000 shares, got out for an $80 profit (1-cent winner on 4000 shares, 4-cent winner on 1000 shares), but it could have been easily a $500 profit (missed out on $420).

There are many aspects to trading and obviously this is one of the ones I have to really work on. We'll see if we can work on that in the next few days.

One good trade to tell you about today. Occurred on Bell South (BLS). All morning, BLS was downtrending. Then at 11:02AM, BLS reached some support at $33.75 (I think there was maybe 400 size on the bid). Anyways, the Futures tanked hard so I went short 4000 shares at $33.75. Got out of the trade as follows: 1-cent winner (1000 shares), 7-cent winner (1000 shares), 8-cent winner (1000 shares), 9-cent winner (1000 shares) ($250 profit before fees). Again, my impatience caused me to get out of this good trade too early. After I got out, I watched in horror as BLS continued falling another 20 or so cents (missed out on $800 profit!!!!).

Honestly, there was no real good reason for me to have gotten out of BLS when I did - the Futures were continuing down and there were a lot of eager sellers (lots of big sell orders on the way down). Again - this is something I'll work on.

No bad trades today. Hopefully I can keep this habit going...


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