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

Tuesday, April 11, 2006

Not Again!?!?!?!?!

Gross: +$104.80
Net: +$57.76
Loss From Top: $51.00
Trades: 29
Shares Traded: 40940

Stocks Traded Today (net profit/loss):
Citigroup (C): +$61.22
Home Depot (HD): +$44.65
Hewlett Packard (HPQ): +$12.28
Walmart (WMT): -$9.93
Alcoa (AA): -$50.46

Ha! The system goes down again today and we were left with nothing to do but twiddle our thumbs for most of the day.

The execution server went down at around 10:30AM and did not come back online until roughly 3PM.

I have a feeling someone is getting in big trouble over this. This has happened at least 3 times in the last week and a half. Not only does it cost the company profits (I think there are well over 400 traders worldwide missing out on making money), but the company also has to eat all the losses that may have occurred during the downtime (and believe me, there are some really big players in our company with some really big positions).

Today there was a great move in the morning, but the rest of the day seemed to go nowhere (even though I didn't get to participate in it). Unfortunately I missed most of the big downward movement of the market because I simply couldn't find anything good to short.

After a brief pause by the market at around 10AM, it started a second leg downwards. I was able to catch a bit of that move, but I was so upset that I didn't hold onto my position. At that time, I managed to get short 5000 shares of Walmart (WMT).

For some reason, WMT looked unwilling to go down with the rest of the market, so I got out of my position. Once out of my position, WMT tanked hard and fast...I all I could do was sit and watch as it plunged 20 cents.

I then put on a bad trade on WMT and lost everything I had made. It seemed like as soon as I got out of that losing trade, the system went down.

After the system was down for about an hour and a half, many of the traders went home (as they figured it wouldn't come back online). I stuck around in the event they got the system up and running (cause I'd rather be trading than anything else!). Plus, this week is going to be an extremely short week for me, so I wanted to trade as much as I could.

Finally at roughly 3PM, they said we could trade again. I found few opportunities here and there, but I couldn't make a decent day out of it.

Good Trades
10:18AM - Walmart (WMT) and the Futures were downtrending. The Futures suddenly tanked really hard, so I got short 5000 shares when the support level of $45.50 broke. It moved down a few cents, but after a few minutes, WMT didn't seem to go anywhere, so I got out as follows: 2-cent winner (3200 shares), 3-cent winner (1500 shares), 4-cent winner (300 shares) ($121 profit before fees). After I got out, WMT lingered around for another minute or two, but then tanked really hard (rats! missed out on a great move!).

3:45PM - Both Citigroup (C) and Futures started moving back up after being stuck near the lows of the day for most of the afternoon. I got long 3000 shares when I had a chance and got out as follows: 3-cent winner (1000 shares), 4-cent winner (2000 shares) ($110 profit before fees)

Bad Trades
10:31AM - Walmart (WMT) and the Futures were still downtrending. I got short and got partially filled for 1900 shares. Unfortunately, after such an extended move downwards, both the Futures and WMT bounced back up. I got out for a 6-cent loser on the entire position ($114 loser before fees).
  • I should have been more cautious when I got into this position. Both WMT and the Futures had already tanked a great deal and was due for a bounce at anytime soon. Unfortunately I got short almost near the low of the day on WMT.
  • If I had wanted to go short on WMT, I should have waited for the Futures to start tanking hard again. This is because after an extended downwards movement, there is a greater chance of a bounce - and to prevent getting caught on the wrong side of a bounce, I should have waited to see if the Futures were going to tank some more.


Post a Comment

<< Home