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

Thursday, December 21, 2006

A 98 Minute Trade

Gross: +$707.00
Net: +$584.07
Loss From Top: 0
Trades: 54
Shares Traded: 202000

Stocks Traded Today (net profit/loss):
Rite Aid Corporation (RAD): +$701.00
EMC Corp (EMC): +$239.44
Jabil Circuit Inc. (JBL): +$110.26
Worthington Industries Inc. (WOR): -$45.94
Pfizer Inc. (PFE): -$166.18
General Electric Company (GE): -$254.57

Sorry for the late post's that busy time of the year so my posts may start coming a little sporadically...I'll try my best to get them out in a timely manner.

Anyways, as you can see, I mostly stuck to some fat scalping today.

Rite Aid (RAD) reported this morning and I intently watched this stock. But after some morning moves, this stock just became flat out boring.

But then later it seemed that RAD didn't want to go down further and it looked like it caught some support.

That's when I decided to go in long with 10,000 shares and I just sat there and waited....and waited....and waited....

I got into the trade at 2:18PM and I held this sucker for 98 minutes! I finally punched out at 3:56PM mainly because I just wanted to punch out before the close (us traders get penalized by the prop firm if we still have a position when the markets close....don't ask me what the penalty is, 'cause I don't know).

But all that waiting for that one trade only managed to get me $250.

Oh well, I guess it kept me out of trouble for the rest of the afternoon.

For the first 30 minutes, I was on the edge of my seat, ready to punch out for a 1-cent loser if the size behind my trade was going to break, but once it moved up one cent, I relaxed a bit - the support for my trade was pretty strong and there was no way that RAD would suddenly go severely against me (it was one of those really really slow stocks).

But after the first 30 minutes into the trade, I started looking around for other trades, but in the end, I didn't trade anything else.

It might have been a good thing too...there really wasn't much going on after that mid-lunch tank of the overall markets.

And wouldn't you know it, I was planning to leave early today at around 2:30PM so that I could get some things done, but this trade kept me in the office until the close.

Anyways, yesterday I told you how I hate fat scalping and this morning reminded me why.

I was up $500 fairly quickly, but then I lost it all after some bad fat scalps.

I got myself back together again and managed to make it back...

Today I mainly stuck to trading the thick stocks (RAD, EMC, PFE, GE) and mainly used 10,000 share positions. However that one RAD trade took up most of the afternoon, hence the low number of trades.

Two good trades and no bad trades (just a couple of 1-cent losers on 5000 and 10,000 share positions).

Tomorrow I'm probably just going to trade the morning....the afternoons lately have been extremely unbearable for me...

Good luck to those who trade tomorrow....if not, happy holidays!

Good Trades
9:40:24AM - Rite Aide (RAD) had opened and started moving up whlie the Futures were flat. When RAD broke it's intraday high at $5.55, I went long 10,000 shares. When it broke, it fairly quickly moved up and when it looked tired, I took half my position out and when it felt like it could go up any further, I took the other half out. In all, the whole position was taken for a 4-cent winner ($400 profit before fees ; Long 10,000 shares @ $5.55 ; Out: 9:42:07AM)

2:18:18PM - Rite Aid (RAD) was flat while the Futures were also flat. I was watching some big size on the offer push RAD down throughout the entire morning, but it looked like RAD didn't want to go down any further and so I waited until it looked like the big size on the offer was going to break...that's when I went long 10,000 shares. Held this till near the close and mainly exited because I ran out of time. I got out as follows: 2-cent winner (5000 shares), 3-cent winner (5000 shares) ($250 profit before fees ; Long 10,000 shares @ $5.46 ; Out: 3:56:32PM)

Bad Trades



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