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

Wednesday, August 02, 2006

Batter Up

Gross: +$1,140.00
Net: +$814.84
Loss From Top: 0
Trades: 126
Shares Traded: 328960

Stocks Traded Today (net profit/loss):
AT&T (T): +$478.33
Motorola (MOT): +$228.62
Hewlett Packard (HPQ): +$163.15
Exxon Mobile (XOM): +$67.04
Advanced Micro Devices (AMD): +$54.87
General Motors (GM): +$32.98
JP Morgan (JPM): +$16.90
Walmart (WMT): +$5.04
Home Depot (HD): -$13.95
General Electric (GE): -$21.26
Time Warner (TWX): -$196.91

As was the theme the previous two trading days, today I was determined to be a big player and to start swinging with a big bat. I was tossing around 5000 and 10,000 share orders like Caesar salad!

Today I also utilized a feature that our trading software offers, but never had a chance to use. It's called "Stock Tracker" and it basically allowed me to put in a list of stocks in a small window and from there I can see the bid and ask sizes (among other things).

Boy I wished I used this Stock Tracker earlier! I found it easier to find opportunities (instead of having to display several Level 2 screens). Since I could keep track of more stocks than usual, you can see I traded quite a few different stocks today (11 in total today).

Look at the number of shares traded today! I'm starting to get up there and today I felt as though I didn't use the biggest size I could have put on on some of my positions. Soon I'll be trading half a million shares a day and perhaps someday I'll be those big players trading one million shares or more a day.

Even with the big size I traded today, there are still some things I need to work on. I hit a lot of singles today, but didn't really hit any home runs (and believe me, there were several positions that could have been held for home runs).

There were some great moves on GE, MOT, and T, however I got out of many of my positions too early and only managed to capture a portion of the moves.

I also chose my trades a little more wisely today. I only put on a position (or tried to) in stocks that were breaking out or that were clearly trending. There were a few trades in which the stock was trendless, which ended up being losers (*cough*TWX*cough*).

The markets also helped out a little bit because it actually moved around today (unlike the previous two days). There were some nice up-swings and down-swings and I was able to take advantage of some of them.

I'm glad I had a bit of a rebound on AT&T (T). As mentioned in my post yesterday, I lost over $1000 on this stock the last two trading days. In fact, I was up almost $700 on AT&T earlier today, but a few hits in the afternoon brought it back down to $470 profit on it.

I made a stupid trade on Time Warner in the mid-afternoon in which I lost $250 and I had to spend the rest of the day playing catch-up.

I'm going to re-define a bad trade as a trade in which I lose $150 or more. Previously I had bad trades being those that lose $100 or more, but since I'm using big size, I'm bound to have many $100 losers (1-cent loser on 10,000 shares, or 2-cent loser on 5000 shares).

With this new definition, I have two good trades versus two bad trades today.

Tomorrow, let's see if I can put 2 and 2 together (big position + holding on to winners longer).

Good Trades
9:43AM - AT&T (T) and the Futures were uptrending. I saw a level break on AT&T and tried to get long 10,000 shares, but I only got partially filled for 4300 shares. I rode this winner for as long as I felt comfortable and got out as follows: 4-cent winner (2000 shares), 7-cent winner (2300 shares) ($241 profit before fees)

11:12AM - AT&T (T) was uptrending while the Futures were uptrending. I got long 5000 shares in the hopes of holding on to a trend trade, but just then the Futures ripped up hard. I got out of my position as follows: 6-cent winner (2000 shares), 7-cent winner (3000 shares) ($330 profit before fees)

Bad Trades
11:35AM - AT&T (T) was uptrending while the Futures were uptrending. The Futures had just finished ripping and I don't know why, but I decided to go long 10,000 shares after the Futures move had finished. Bad idea...I got out as follows: 1-cent winner (2000 shares), 2-cent loser (4600 shares), 3-cent loser (3400 shares) ($214 loser before fees)
  • Ahhhhh...I think I was a little to over-excited from the great moves in the morning and I prematurely got into this position
  • It's never a good idea to get into a position right after the Futures finished making it's move
1:42PM - Time Warner (TWX) was flat and so were the Futures. I was watching big sizes on the bid and ask on TWX for the longest time and when I thought the ask was going to break, I went long 5000 shares. The next thing I knew it, TWX gaps 5 cents against me! I got my entire position out for a 5-cent loser ($250 loser before fees)
  • Tsk tsk....I know I'm smarter than to take a position in a stock that's flatlining AND when the Futures are also flatlining
  • I should also have been more cautious especially when a stock like TWX flatlines...either size would refill as soon as it breaks or it'll fake you out...oh well....lesson learned


Post a Comment

<< Home