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

Saturday, June 10, 2006

Not Enough Time (Fri Jun 9 Results)

Gross: +$981.80
Net: +$804.87
Loss From Top: $46.31
Trades: 98
Shares Traded: 168300

Stocks Traded Today (net profit/loss):
Citigroup (C): +$399.38
Home Depot (HD): +$191.70
Bank of America (BAC): +$94.97
General Electric (GE): +$67.96
Walmart (WMT): +$60.33
Tyco (TYC): +$25.71
Hewlett Packard (HPQ): +$25.17
Merck (MRK): +$24.21
JP Morgan (JPM): -$5.60
Motorola (MOT): -$22.80
Micron Tech (MU): -$56.20

As a result of my slightly improved trading strategy, I might have to accept the fact that I may put on more trades than usual. Not that I'm complaining or anything (the results from the last few days have been more than I could ask for), but usually when the number of trades become high, I often wonder if it is possible to reduce the number of losing trades (and hence reduce the number of overall trades).

I'll continue to trade the way I have the past few days and if it continues to be successful all next week, I'll then look to improve upon it.

On Friday, I was a little disappointed with the results, but still a good day nonetheless. I kept my losses to a minimum, but I just felt as though there wasn't enough time during the day. I was basically trading away and before I realized it, there was only 10 minutes left in the trading day.

Who knows - since the NYSE and Euronext have agreed to merge, they may come a time when we can have a 12-hour trading day (where NYSE equities begin trading on Euronext at 4AM, continue on when the NYSE opens until it closes until 4PM).

I wouldn't know what I'd do if it ever came down to that. But if it does ever happen, I know I'd be in the office by at least 8AM (I'd love to trade when all those 8:30AM economic numbers come out).

It was a fairly whippy trading day on Friday with a lot of bounces and jiggles in the market. Because of all the bouncing and jiggling, I found myself having to exit many of my positions for small losers. I still don't feel comfortable yet holding positions like before because the volatility was still alive and kicking.

I can't wait for Monday!

Good Trades
9:56AM - Citigroup (C) and the Futures were moving up when the Futures suddenly ripped up hard. I got long 6000 shares and got out as follows: 3-cent winner (1000 shares), 4-cent winner (1700 shares), 5-cent winner (2000 shares), 6-cent winner (1300 shares) ($276 profit before fees)

1:16PM - Home Depot (HD) and the Futures were downtrending. There was some support at the $36.85 level (about 400 size on the bid) when the Futures started tanking. The size at $36.85 started breaking, so I went short 4000 shares. I got out as follows: 5-cent winner (3000 shares), 6-cent winner (1000 shares) ($210 profit before fees)

Bad Trades
10:44AM - Micron Tech (MU) was flat and so were the Futures. I saw two levels on the bid with big size (each at about 500 size on the bid) and so I went long 6000 shares. Well prices hung around for a while at which point the Futures decided to start tanking. I got out as follows: 1-cent winner (500 shares), 2-cent loser (800 shares), 3-cent loser (4700 shares) ($152 loser before fees)
  • Firstly, my trading rules specifically state that I should never get into a position based entirely on what I saw on the Level 2. The two levels that were supporting my trade quickly disappeared and I was a sitting duck
  • When prices started hanging around with such good support, I should have started second guessing the position and exited wherever I could (instead of waiting for the Futures to tank)
  • Lastly, because this trade did not meet all my requirements and if I still wanted a position, I should have used fewer shares


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