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

Thursday, August 31, 2006

Three Times A Charm...Or Is It?

Gross: +$625.35
Net: +$387.56
Loss From Top: 0
Trades: 156
Shares Traded: 213800

Stocks Traded Today (net profit/loss):
Exxon Mobile (XOM): +$144.96
Corning (GLW): +$143.77
Motorola (MOT): +$138.79
Walmart (WMT): +$115.56
Bank of America (BAC): +$6.76
AT&T (T): +$3.29
Home Depot (HD): -$8.33
Hewlett Packard (HPQ): -$11.55
Advanced Micro Devices (AMD): -$36.82
Ford (F): -$108.88

It was another day (and third in a row) in which I broke my record for number of trades. Yesterday I mentioned that I usually trade a lot for "quick" scalps if I feel defensive.

Well this morning I came in determined to look for setups in which I could get into a big position and hold it for some big-time winners.

I tried doing that this morning...with limited luck. I put on a few big positions, most of which either went nowhere, or I had to get some out for partial gains and the rest out for a partial loss.

It was around mid-morning when I decided that I didn't really like the market action, and so, I went back to my good old defensive self again and just scalped my way through the day.

Is this a good thing? you can see from the results this week, the rewards are...well... just not very rewarding!

See, the problem with with my "quick" scalp trades is that I can do a few profitable trades in a row, but they will always be that one trade that goes against you, and since I will usually do my "quick" scalps on thinner stocks, I'll often have to punch out of these losers for a relatively big loss.

In other words, one loser will often times wipe out the gains of several winners. So again, is this a good thing? I certainly wouldn't want to do this day in and day out. In fact, this kind of trading is something I really would like to avoid. My ultimate plan is to start practicing patience by holding my winners longer and to actually trade...and when the markets aren't doing much of anything I can resort to quick scalps (but I don't want to do this all day long!).

Anyways, tomorrow I'll be leaving for a Labor Day weekend getaway, so I won't be in tomorrow. If I have time tonight, I'll post up my trading statistics for the month of August (beware! they might not be pretty!), otherwise I'll post my August stats when I get back from vacation.

Good Trades
9:52AM - Ford (F) had a nice uptrend while the Futuers were sideways. When Ford broke some resistance, I went long 10,000 shares and I got it out for a 2-cent winner ($200 profit before fees; In: 9:52:36AM ; Long 10,000 shares @ $8.40 ; Out: 9:57:55AM)

Bad Trades
11:41AM - Ford (F) was moving up while the Futures were moving down. Ford was approaching it's intraday high at $8.46 and when I thought it would break, I went long 10,000 shares. I basically went long at the high of the day. I had to get out for a 2-cent loser ($200 loser before fees; In: 11:41:00AM ; Long 10,000 shares @ $8.46 ; Out: 11:43:36AM)


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