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

Wednesday, November 01, 2006

The Joy Of Pressure-Free Trading

Gross: +$692.24
Net: +$507.25
Loss From Top: 0
Trades: 116
Shares Traded: 177600


Stocks Traded Today (net profit/loss):

Advanced Micro Devices (AMD): +$624.68
Home Depot (HD): +$169.06

Corning (GLW): +$118.64
Micron Tech (MU): -$8.60
AT&T (T): -$34.64
Motorola (MOT): -$41.30

Exxon Mobil (XOM): -$156.64
Walmart (WMT): -$163.94

I can certainly get used to this!

Today was the first time in a long time I enjoyed the pleasures of pressure-free trading.

No longer was I trying to make a new strategy work. No longer was I trying to hit a certain monetary target. No longer was I trying to force myself to think straight. No longer was I trying to force myself into an uncomfortable position or trade. And no longer did I feel pressure to try to prove anything in particular.


I just did what I know - and my trading day didn't seem as stressful as it usually is.

In fact, when I encountered some big losing trades (there were 2 of them - see bad trades below), I didn't really feel all that upset at all! I didn't feel the need to extract revenge or feel the need to make back what I had lost. I was actually quite surprised at myself for managing those losing trades quite well.

As usual, Advanced Micro Devices (AMD) was a gold mine for me again today. Managed to make two good trades on this stock today.

The two bad trades I made were on Exxon Mobil (XOM) and Walmart (WMT). Both of these bad trades involved smaller share size (1000 shares and 2000 shares respectively), which was a good thing - both of these losers sort of ran away from me and I bailed out. The smaller share size also reflected how confident I was about these positions (which is what I SHOULD do).

I'm keeping this post short so that I can get working on my October monthly stats (and you all know how much time and effort it takes for me to get that posted). I'm hoping I can get it out tonight, but if not, then tomorrow night.

I haven't been updating my daily spreadsheet so I don't know where I stand for the month of October, though I have a feeling it's not going to be good...

Good Trades
10:00AM - Advanced Micro Devices (AMD) was downtrending hard while the Futures were also falling. AMD reached the $20.85 level where there was some support on the bid (about 400+ size on the bid). Just then, the Futures tanked hard, so I went short 4000 shares when the level broke. Rode it out for as long as I could and got out as follows: 5-cent winner (2000 shares), 11-cent winner (1000 shares), 17-cent winner (1000 shares) ($380 profit before fees ; In: 10:00:06AM ; Short 4000 shares @ $20.85 ; Out: 10:03:10AM)


11:15AM - Advanced Micro Devices (AMD) was uptrending, but looked like it was turning down while the Futures were turning down. The Futures suddenly tanked hard so I went short 4000 shares @ $20.93. On the way down I got half my position out and I got the other half out when the down move didn't seem sustainable. I got out as follows: 4-cent winner (2000 shares), 6-cent winner (2000 shares) ($200 profit before fees ; In: 11:15:00AM ; Short 4000 shares @ $20.93 ; Out: did not record...handwriting illegible - sorry!)



Bad Trades
10:36AM - Exxon Mobil (XOM) had just finished ripping up after the crude inventory report while the Futures were downtrending slightly. There was some big resistance at $71.70 and I got long 1000 shares when it broke. It move up a few cents, but then XOM just tanked down hard. I couldn't take the pain any longer so I punched out for an 18-cent loser ($180 loser before fees ; In: 10:36:38AM ; Long 1000 shares @ $71.70 ; Out: 10:37:33AM)
  • This is an example of a trade in which I didn't feel too comfortable with - I'd go in with small share size (for me, that's 1000 shares)
  • Exxon was very volatile after the crude report and because XOM just finished a major move, it was anyone's guess as to which direction it would move next
  • I accepted the risk with this trade, but I just didn't expect it to jump so far away from my entry point - I'll get these from time to time...I'm just glad I only used 1000 shares
11:35AM - Walmart (WMT) was downtrending while the Futures were slowly downtrending. WMT started testing the $49.00 level when the Futures tanked a bit. I went short 2000 shares at $49.00 when the level broke, but the Futures suddenly ripped back up. WMT also popped up and I just felt totally uncomfortable with this position, so I punched out as quickly as possible. I got out as follows: 5-cent loser (700 shares), 6-cent loser (1300 shares) ($113 loser before fees ; In: 11:35:36AM ; Short 2000 shares @ $49.00 ; Out: did not record)
  • It was another position I felt uncomfortable with, so I only got in with 2000 shares - I felt uncomfortable because the overall trend was down, but the short-term trend was sideways
  • I might have jumped the gun with this position - I got in a little too early because the Futures move down was not definitive, but just more of a chop

6 Comments:

  • nice job

    By Anonymous Ugly, at November 01, 2006 7:00 p.m.  

  • Interesting Blog. Please check out my Blog at www.coastsystemstrading.blogspot.com and let me know what you think.

    By Blogger coastsystemstrading, at November 01, 2006 7:09 p.m.  

  • Well done JC, well done.

    By Anonymous StockRoach, at November 01, 2006 8:18 p.m.  

  • Looks like you're on a roll. Congrats.

    The XOM trade was on the heels of the 10:30 weekly EIA report on crude inventories. Oil can be widly volatile at that time, sort of like equities after a FOMC statement. Maybe you could avoid XOM from 10:29-11:00 on Wednesdays. - Boyd.

    By Anonymous Anonymous, at November 01, 2006 8:25 p.m.  

  • Hi JC,

    Great shorts on AMD, I like the way how you lock in your profit at different stages. Excellent trading! I also did the same thing as you on XOM. I long 1000 @ 71.70 too and got out with a 200 lost. So you are not the only one that make bad trade, I made them too! Enjoy reading your blog as always.

    Have a good week,
    KL

    By Anonymous Anonymous, at November 01, 2006 9:10 p.m.  

  • Ugly,
    Thanks man - I'm hoping for a great November for the both of us!

    Coastsystemstrading,
    Thanks for your comments! I've checked out your site - interesting indeed! I shall be quite interested in following your progress!

    Stockroach,
    Many thanks my friend!

    Boyd,
    Thanks for the congrats! XOM can be a crazy beast especially when inventories come out - I thought XOM was crazy, but I also watched VLO pop up $1 when the inventories came out...now that's an even crazier beast!

    KL,
    Thanks for the compliments! Hehehe - I think many traders at where I work also got caught in the same trade as well! I heard many moans and quite a few people swearing when XOM jumped down like that!

    Wishing all of you some good trading for the rest of this week!

    By Blogger J.C., at November 01, 2006 11:13 p.m.  

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