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

Monday, April 03, 2006

The Good, The Bad, And The Ugly

Gross: +$45.30
Net: -$120.25
Loss From Top: $406.74
Trades: 73
Shares Traded: 134800

Stocks Traded Today (net profit/loss):
Citigroup (C): +$88.22
Johnson & Johnson (JNJ): +$77.00
JP Morgan (JPM): +$64.02
Home Depot (HD): +$40.83
Hewlett Packard (HPQ): -$64.88
Pfizer (PFE): -$66.95
Corning (GLW): -$68.85
Walmart (WMT): -$189.63

Today was a wild roller coaster ride for me. In the morning, the overall market was strong and moved upwards until about 10:30AM. From that point on until roughly 2PM, the markets were flat and as we closed the day off, the markets started falling back down again.

I usually like the first few days of a new month because I can try new trading strategies, knowing that if I mess up, I have the rest of the month to make it up. But today I got myself in a jam and I had to spend the better part of the day getting myself out of it.

Here's a quick summary of my wild day today.

The Good:
This was the 6th straight trading day in which I was up almost $300 within the first hour of the opening bell. If I keep this up, I think I should begin risking more when trading in the morning (increase my share size).

The Bad:
Between 10:30AM - 2:00PM, I put on 7 bad trades in a row and losing over $550 in the process. I shouldn't have traded during those times as none of the stocks I was watching and the overall market were not going in any direction in particular. Most of the bad trades were the result of revenge trading...At one point, I was about ready to slap Walmart (WMT) with a 20,000 share order as a punishment for making me lose money - but I caught myself and tried to cool off.

The Ugly:
From 2PM onwards, I traded very sloppily in an attempt to get out of negative territory. I was switching from one stock to the next, looking for any opportunities and even if it had a slightest chance of making me money.

The best trade happened on Walmart (WMT) at 9:39AM. At that time, both WMT and the Futures were tanking so I shorted 4000 shares and got out as follows: 4-cent winner (800 shares), 5-cent winner (3200 shares) ($192 profit).

From 10:30AM onwards, it was one bad trade after another. The three worst trades were as follows:

At 1:24PM I went long 6000 shares on Pfizer (PFE). Had to get out as follows: 2-cent loser (5000 shares), 1-cent winner (1000 shares) ($90 loss).

At 1:35PM I went short 4900 shares of Walmart (WMT). Got out as follows: 1-cent loser (1900 shares), 5-cent loser (3000 shares) ($169 loss).

Finally at 2PM, Walmart (WMT) got me again - this time I went long 4000 shares and got out for $140 loss.

Today I overtraded, traded stocks that I told myself I wouldn't trade (PFIZER!), and I literally destroyed myself by revenge trading. By the time I realized all these things, the damage was done.


Post a Comment

<< Home