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

Friday, September 08, 2006

Dreams

Gross: +$219.34
Net: +$35.40
Loss From Top: 0
Trades: 156
Shares Traded: 146364

Stocks Traded Today (net profit/loss):
Advanced Micro Devices (AMD): +$162.88
Walmart (WMT): +$151.95
Exxon Mobile (XOM): +$45.70
Home Depot (HD): +$18.04
Citigroup (C): +$5.06
Hewlett Packard (HPQ): +$2.73
EMC Corp (EMC): -$3.34
Motorola (MOT): -$347.64

Today I left the office around 1:30PM as I had to return home so that contractors can do some work on the house.

As I made the journey home, there were only a few people on the bus and the quiet of the day had me half daydreaming and half thinking as I stared out the bus window. I started thinking about what I was doing all this for and what my dreams and goals in life were.

So what are my dreams?

I dream that in the future I live in a great house with a swimming pool in the back. I also dream that I can travel anywhere in the world at anytime so that I can see the best this world has to offer and I can meet the people of this world. And when I die, I'll have a smile on my face knowing that I can truly say that I have lived on this world and I got to see the wonders of human kind.

I dream that there is a smile on my wife's face everyday, knowing that she is taken care of and that she no longer has to worry about whether we can afford nice things or not. I dream that I can take my wife and family out to dinner or lunch as often as we please without having to worry about the bill. And I feel so great that my family knows that I'll be there to look after them financially if needed.

I dream that I get to do something I absolutely love for a living and that I jump out of bed every morning excited to get the day started. I dream that I can take the day off whenever I please and that I can leave for vacation or leave during the middle of the day on my own free will.

I'm guessing that you all know that the last paragraph is currently reality for me. But I'm really trying to work on the rest and I sincerely hope that the old saying "if you're doing something you love, money will follow" is true.

I figure that you are only here on this Earth for a limited time. This is YOUR life and you only have ONE shot at it. If you waste time or screw it up, tough luck...there is no dress rehearsal. I think no one should lay on their deathbed and think "Boy, when I was younger I should have...or I could have...". Well guess what, by that time, it's too late and you can't turn back time.

I think less than 0.1% of people have their dreams become reality. Well I don't want to be that 99.9%...I'm going try real hard to do this...if I fail, at least I can say I tried.

I truly hope the path I am currenly on leads me to my dreams. And I hope that all of you reading are on a path that leads to your life goals and dreams. Then comes the question: are you doing everything in your power to reach those dreams?

As you can probably tell, there isn't much for me to say about today's trading. I did have a slow start in the morning and within the first 30 minutes I was down $475! That was the slap in the face that got me to see the light and I managed to make it back to eek out a positive day.

No real good trades today, but there was one bad trade that almost had me shutdown again today.

Good Trades
None.

Bad Trades
10:01AM - Motorola (MOT) was uptrending while the Futures were slightly downtrending. I went long 1000 shares at $23.47 initially when I saw a level with some decent size break. There was some moderate resistance at the $23.50 level on the offer (about 800 size), but then the Futures popped up and then suddenly I saw a huge buy order (1000 size) show up for the price of $23.50! I tried to get as many shares at $23.50 and managed to get long another 3800 shares. BUT, that was the end of the up move and things started screaming back down. I got out as follows: 1-cent winner (1000 shares), 3-cent loser (1000 shares), 11-cent loser (1000 shares), 13-cent loser (1800 shares) ($364 loser before fees ; In: 10:01:02AM ; Long 1000 shares @ $23.47, long 3800 shares @ $23.50 ; Out: 10:03:18AM)
  • In the excitement of everything, I broke one of my trading rules, which is to NEVER get long if the resistance/support level is 2 or more cents away from the best bid/offer (in this case, prices were at $23.48 when the buy order appeared)
  • I should have also been very weary about this one, even with the big buy order...since the offer showed 800 size while the buy order showed 1000 size, this had a good chance that everything would be filled in one print (that dreaded "One Print Break!")
  • I also felt I was missing out on a great move my Motorola; I watched it uptrend strongly during the first half hour and I didn't want to miss the next move made by MOT

5 Comments:

  • good for you. I like how you described your dreams. I hope they come true.

    No reason for me to to dream or even live, for that matter.

    By Anonymous Anonymous, at September 08, 2006 10:42 PM  

  • Anon,

    Thanks for your comments.

    I sometimes just start thinking about these things from time to time. Not sure why they come up, but they do.

    Hmmm...I hope everything is going ok for you. You seem fairly pessimistic! Just keep your head high and give it some time and hopefully you'll get to where you are going.

    Best of luck to you!
    JC

    By Blogger J.C., at September 08, 2006 11:04 PM  

  • J.C: So, we are having a similar dream huh. :)
    I like what you've written : "You are only here on this Earth for a limited time. This Your life and you only have ONE short at it, ..no dress rehearsal"

    Hope your dreams come true.

    Gav

    By Anonymous Gav, at September 09, 2006 9:22 PM  

  • Hi JC,

    I read 1 of your older entry a while ago. You mentioned something about getting paid if you provide add/liquidity and you need to pay extra if you take away liquidity.

    Can you please what you mean by adding/provide liquidity versus take away liquidity.

    Thanks.

    By Anonymous Anonymous, at September 09, 2006 9:31 PM  

  • Gav and Anon@9:31PM,

    Thanks for your comments.

    Gav,
    Hehe...I think many people have similiar dreams to mine...I'll give this thing some time and we'll see where I go. I hope in time, you'll also get to where you want to go to...just keep up the good work on your site - I think you might find that by working on your site daily can really help you reach your goals faster!

    Anon@9:31PM,
    By adding liquidity, I mean putting out an order and waiting to get filled (i.e. your put your order at a price that will appear on the Level II, but not get filled). For example, let's say the bid is $1.00 and the ask is $1.02; if I want to add liquidity, I'll put in a buy order at $1.00 (my order won't get filled right away because no one wants to sell at that price) and I have now just added liquidity.

    By removing liquidity, I mean taking shares away from the Level II that is already there. Using the same example where the bid is $1.00 and the ask is $1.02; if I want to remove liquidity, then I'll put in a buy order at $1.02 - I'll get filled right away and I have just removed liquidity.

    On the NYSE, certain ECNs (Inet, Arca, etc) give you credits for ADDING liquidity (putting size on the Level II and waiting to get filled) and you must pay extra for REMOVING liquidity. Please note that on the NYSE the credits are not very much and probably not worth the while.

    HOWEVER, on Nasdaq, the credits are much higher and I know several traders that make lots of money just by trading credits. Note that on the Nasdaq, the reverse is true: you MUST PAY for ADDING liquidity and you'll recieve credits for REMOVING liquidity. Why it's the opposite between Nasdaq and NYSE, I don't really know.

    Hope that answers your questions!
    JC

    By Blogger J.C., at September 10, 2006 9:01 AM  

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