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

Monday, July 31, 2006

Not A Good Day To Swing A Big Bat

Gross: +$270.48
Net: +$53.90
Loss From Top: $99.32
Trades: 107
Shares Traded: 207404

Stocks Traded Today (net profit/loss):
Walmart (WMT): +$400.31
General Electric (GE): +$325.45
Advanced Micro Devices (AMD): -$10.62
Exxon Mobile (XOM): -$24.92
Bank of America (BAC): -$28.00
Motorola (MOT): -$35.27
Hewlett Packard (HPQ): -$56.70
AT&T (T): -$516.33

Talk about chop chop! Take a look at a chart for any of the major indices (Dow Jones, S&P 500, Nasdaq) and you'll know what I'm talking about. I usually call these types of chart patterns "spikes of death" because it indicates a very choppy up and down day without any kind of distinct trend. These kind of days usually don't amount to much and today was no different.

It's too bad too...I came in today knowing I must start being aggressive and start swinging a big bat by trading 10,000 or more shares and holding them for big profits. Good idea - bad day to do so. There were several times I was looking at a great winner on a big hefty position, but because of the choppiness of the markets, prices kept moving up and down like a yo-yo and it was difficult to capture much profits.

Lately I've had a great run with AT&T (T) and managed to pocket a lot of great profits with this stock. But today I couldn't get anything right on it. Practically every position I put on AT&T turned out to be a loser and as a result the majority of my losses on the day were because of AT&T.

I would have to say that I'm pretty happy with the amount of patience I had with several of my positions today. Had the markets actually trended, I think today would have been extremely successful.

However, because of the jagged way the markets moved today, I gained some, I lost some and resulted in an insignificant day.

I'm very disappointed. Not one of my goals were met this month. Only one $1000+ day and I am still looking for my first $10,000+ month. Next month, I will not put any monetary goals (it may affect me mentally) and I will strive to be as aggressive as ever (but at the same time, I have to know WHEN to be aggressive). I'll post my monthly statistics this weekend.

A pathetic end to a pathetic month.

Good Trades
10:51AM - (M) Walmart (WMT) started downtrending as were the Futures. There was some support at the $45.00 level and when the Futures started tanking, I went short 2000 shares at $45.00. I rode it down and took a bulk of the move downwards as profit. I got out as follows: 12-cent winner (800 shares), 13-cent winner (1200 shares) ($252 profit before fees)

3:19PM - (M) General Electric (GE) looked like it caught some support while the Futures looked like they were starting an uptrend. There was some great support on the bid, so I went long 10,000 shares. Just then, the Futures ripped up big time. I got out of my position as follows: 3-cent winner (5000 shares), 4-cent winner (5000 shares) ($350 profit before fees)

Bad Trades
10:04AM - (M) AT&T (T) and the Futures were uptrending and when some resistance broke, I went long 10,000 shares. The Futures continued ripping up and AT&T went up a few cents. I gave this position more time in the hopes of catching more profits, but I held too long. Prices started falling back down, so I got out of my position as follows: 3-cent winner (900 shares), 2-cent loser (2000 shares), 3-cent loser (800 shares), 4-cent loser (2000 shares), 5-cent loser (200 shares), 6-cent loser (3300 shares) ($341 loser before fees)
  • I've always been the type of trader that takes his profit too soon, but in this case, I was trying to practice patience (in other words, I was trying to be more greedy), and I ended up taking a big loser
  • I could have had a 4-cent winner on 10,000 shares ($400 winner!), but I decided to hold on a little longer
  • I think I have to learn to hold on to a loser a bit longer and to give a trade more time to become profitable; this went as bad as a 6-cent loser, but it quickly rebounded and would have been a profitable trade had I waited a minute longer
10:56AM - (M) Hewlett Packard (HPQ) was flat while the Futures were also flat. I went long 5000 shares when I saw some size on the ask break. HPQ didn't go anywhere and I had to get out for a 2-cent loser ($100 loser before fees)
  • Not a very good trade on my part...I guess I was still in my aggressive mode and just tried to hit anything that looked like it might go somewhere
  • there was no trend in both the stock and the this trade should not have happened.
  • This trade was also part of frustration...was fairly bored because the markets were not going anywhere and neither were very many stocks


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