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

Friday, November 03, 2006

I Haven't Seen This In A Long While...

Gross: +$728.66
Net: +$604.59
Loss From Top: $33.49
Trades: 66
Shares Traded: 106600

Stocks Traded Today (net profit/loss):
Walmart (WMT): +$432.00
Home Depot (HD): +$149.23
General Electric (GE): +$42.86
Corning (GLW): +$41.25
EMC Corp (EMC): -$6.17
Motorola (MOT): -$54.59

Before I get started, I'd like to quickly mention a blogsite that a fellow trader at the office recently started. It's called "Micro Cap Mayhem" and can be found at http://microcapmayhem.blogspot.com/. So if you're into micro-cap stocks, go check this site out!

Well, well, well! I haven't seen this kind of consistency in my trading in a very long time...

+$658 on Monday, +$455 on Tuesday, +$507 on Wednesday, +$512 on Thursday and +$604 today. I cannot even remember when the last time things seemed soo steady...

And how pathetic was October! Here we are, three days into the new month and I've already made more than 50% of what I made the entire month last month.

Let's hope I can get through this weekend and continue with the same consistency for the rest of the month.

In yesterday's monthly review, Tyro (from Tyro Trader) left a great comment. He stated:

"I don't know if you are anything like me, but when I'm constantly focusing on my failures, I trade worse. Now, I don't focus on the things I do wrong, I just try to be aware of them. Instead, I focus on the things I do right, and it's keeping me on the path."

When I really think about it, I totally agree with what Tyro stated. I think all of this has to do with having the right mindset. Having the right mindset also includes acknowledging when things go right.

What I was constantly doing was that when things went right, I'd say to myself that things could have been much better. And as a result, I kept pushing myself to do better and I kept trying to do things differently. It almost felt as if I was trying to fight with myself and everytime I did, the market punished me for doing so.

This week I've also noticed that since I'm no longer trying to carry out some sort of "ultimate" plan, I am free to go to where the opportunities are. In the past, whenever I tried changing my trading strategy, I'd limit myself to certain types of stocks.

For example, if I tried to change my trading plan to be more patient and try to capture large moves, I'd usually limit myself to thinner, faster moving stocks like Exxon Mobil (XOM) and Advanced Micro Devices (AMD). And if I tried to change my trading plan to include using bigger share size, I'd usually limit myself to thicker, slower moving stocks like General Electric (GE) and Motorola (MOT).

This week is a prime example of me going to where the opportunities are. On Monday, the bulk of my profits were on Motorola (MOT). On Tuesday, my star stock was Walmart (WMT). On Wednesday, my best stock was AMD. Yesterday it was Home Depot (HD) and today was Walmart again. All of these stocks were great for me because the opportunities were there (and not because they fit the mould of some new strategy I was trying).

Anyways, today was another day of some morning moves, but a rather dull afternoon. Walmart (WMT) just looked sick all morning and that was where the bulk of my profits came from today.

And I don't know about you, but for the whole week it seemed like the day went by much faster than usual. Today it felt like I had just come in to trade when it was already lunch time. All week I kept looking at the time and kept saying "Wow! It's already X o'clock already!" and before I knew it, the day was over. It could be because of the mindset I've had all week - I dunno.

Two good trades and no bad trades today.

Have a great weekend everyone! I'll post up Part II of my "Posts Of Interest" on Saturday.

Good Trades
10:26AM - Walmart (WMT) was downtrending and so were the Futures. WMT approached support at the $48.00 level (there was big size on the bid) when the Futures started tanking hard so I went short 3000 shares. I got out as follows: 4-cent winner (800 shares), 5-cent winner (200 shares), 8-cent winner (1500 shares), 10-cent winner (500 shares) ($212 profit before fees ; In: 10:26:45AM ; Short 3000 shares @ $48.00 ; Out: 10:29:19AM)

11:48AM - Walmart (WMT) was downtrending and so were the Futures. There was some support at the $47.51 level (big size on the bid) and when it broke, I only managed to get 1000 shares short. WMT looked like it was going to start tanking, so I managed to get another 1000 shares short at $47.50. As soon as WMT broke the $47.50 level, it just tanked hard. I got out as follows: 8-cent winner (1000 shares), 9-cent winner (1000 shares) ($170 profit before fees ; In: 11:48:57AM ; Short 1000 shares @ $47.51, Short 1000 shares @ $47.50 ; Out: 11:49:40AM)



Bad Trades
None.

8 Comments:

  • Congrats on a good week, JC. You're right that we should do more of what's working.

    By Blogger wincity, at November 03, 2006 7:42 PM  

  • Cheers to a winning week!

    By Anonymous StockRoach, at November 03, 2006 8:38 PM  

  • Wincity and Stockroach,
    Thanks guys - let's see if I can continue this all next week...then after that, lets see if I can continue this for the rest of the month!

    Have a good weekend guys!

    By Blogger J.C., at November 03, 2006 11:27 PM  

  • Please note that in this blog, I try not to discuss who I work for nor do I discuss my take home for privacy reasons.
    If you want to find more about where I work or what the pay structure is, please email me at:

    jc_at_trivita@rogers.com

    Thanks!

    By Blogger J.C., at November 04, 2006 9:17 AM  

  • Great week. Stay focused, keep up the good work, and don't stop posting.

    Question: What criteria do you use to determine what stocks you are going to trade in your portfolio and for any given day?

    Thanks for everything.

    By Anonymous Rudedog, at November 04, 2006 9:34 AM  

  • RudeDog,

    Thanks for your comments! I currently have a core list of stocks that I watch everyday and occassionally I'll have a stock that's been in the news. But most of the time (as you can see), I mainly stick with the same stocks day in and day out. If I find I'm having trouble trading a certain stock, I may switch it out with another. An example would be Citigroup (C). In the past I used to trade this stock a lot, but something changed and I kept losing money on it...thus, I switched it out with another stock.

    Have a good weekend and I wish you some good trading next week!

    By Blogger J.C., at November 04, 2006 12:28 PM  

  • Hi JC,
    Glad to see you back on the winning track. I enjoy reading your blog for great insights into my own internal struggles as a trader.
    Thanks for sharing the link to MicroCap Mayhem!

    By Anonymous Anonymous, at November 07, 2006 2:00 AM  

  • Phileo,

    Thanks for your comments! I think I should start linking to more sites and articles in my post and hopefully we can all discover new sites this way. Nice site you've got BTW.

    Good luck and good trading!

    By Blogger J.C., at November 07, 2006 8:37 AM  

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