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

Tuesday, January 16, 2007

Mr. Cheapie

Gross: +$271.00
Net: +$143.30
Loss From Top: $276.01
Trades: 71
Shares Traded: 108600

Stocks Traded Today (net profit/loss):
Advanced Micro Devices Inc. (AMD): +$171.89
Countrywide Financial Corporation (CFC): +$166.60
US Bancorp (USB): +$155.34
ConocoPhillips (COP): +$91.98
Rite Aid Corporation (RAD): +$66.17
CSX Corporation (CSX): -$32.84
Wells Fargo & Company (WFC): -$63.74
EMC Corporation (EMC): -$169.43
AMR Corporation (AMR): -$242.67

What a tough day it was for me today. It was tough to trade and the errors in judgement were very costly.

Once the opening bell rang this morning, I had a difficult time finding good opportunities.

After the first hour of trade....I hadn't really traded at all! That first hour is usually the "money" hour for me, so it was definitely a disappointing start to the day.

Luckily I was able to make some profits here and there and by lunch I was up about $400.

But then it happened....

I put on a trade during lunch on ConcoPhillips (COP) that lost me a bundle and that basically tripped me up for the rest of the day (see bad trades below).

Well after I had lost that bundle, I felt I needed to make that money back because I wanted to leave early today.

It seems like every time I get myself in a jam or I feel pressured to make money, I turn into "Mr. Cheapie".

Mr. Cheapie is a guy who looks for those thick stocks, goes in with a big position and tries to make a few pennies (in other words, a cheapie trade). It's fine if the thick stock is moving or trending, but if it's moving sideways, Mr. Cheapie is just looking for trouble.

Well guess what happened after that COP trade...Mr. Cheapie paid me a visit and I quickly found myself in an EMC trade.....a trade in which I would lose more money (I'd lose almost $150 on that trade).

If I felt the need to make money after the COP trade, you can imagine how I felt after losing even more money on EMC.

Anyways, once those two trades happened, it just set me up for a rough afternoon....an afternoon in which I'd see myself lose everything I had made on the day....an afternoon in which I'd see myself get into negative territory...and an afternoon in which there were a few questionable trades.

I had to claw my way back into positive territory and by 3:15PM, I was feeling beat and I decided to call it a day.

Today there were several trades in which I thought I'd give a little more time to work themselves out...unfortunately I gave them a little too much time and I found myself having to eat big losers in the process.

There were also a couple of trades that started off as a great winner, but I'd later find myself chasing prices to get out of the position for a loss. One trade in particular was on AMR Corp (AMR).

When AMR broke the $39 level, I tried to get 2000 shares, but got partially filled for only 600. So I held this position and was quickly a 25-cent winner. I decided to hold for a little longer, but then prices just seemed to move fast and it resulted in a 10-cent loser.

I also had this happen to me on ConocoPhillips (COP) as well.

There were two bad trades and no good ones today. I'm not going to bother posting up the charts tonight...

Anyways, I'm still pretty beat and today's trading just seemed very exhausting...hopefully tomorrow I can get back in the groove...

Good Trades
None.

Bad Trades
12:18:18PM - ConocoPhillips (COP) was moving down while the Futures were flat. COP came down to the $63.00 level and when it broke, I went short 2000 shares. Well COP went in my favor briefly, but went back up. The 3-minute chart still looked promising, so I gave this position more time....perhaps I gave it too much time and I had to get out as follows: 9-cent loser (1500 shares), 10-cent loser (500 shares) ($185 loser before fees ; Short 2000 shares @ $63.00 ; Out: 12:21:44PM)

1:46:27PM - AMR Corp (AMR) was moving up while the Futures were flat. AMR came up to the $40.00 level and when it broke I went long 2000 shares. Initially it went in my favor, but I held too long until I couldn't take it any more and I bailed on this position. I got out as follows: 10-cent loser (1000 shares), 11-cent loser (1000 shares) ($210 loser before fees ; Long 2000 shares @ $40.00 ; Out: 1:49:50PM)

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3 Comments:

  • protect those profits! where was your $0.10 cent Sell Stop Limit? It would've cost you nothing to protect that $0.25 cent winner you had to punch in that order..come on, captial preservation is key, good luck tommorow, get to the office early! -Cal

    By Blogger Cal, at January 16, 2007 9:20 PM  

  • Cal,
    Thanks for your comments. Yea, I kinda let that slip...after it retraced about half that gain, I started to rely on "hope" and I was "hoping" it would come back. *sigh* just another reason why "hope" is bad...I hope everything's going well with you (I know you kicked some ass with those AAPL options!). Keep raking in the $$ - I know we're all waiting to see what you do next! Good luck to you and your trading!

    By Blogger J.C., at January 16, 2007 9:35 PM  

  • Nice buys

    By Anonymous QUALITY STOCKS UNDER 5 DOLLARS, at April 11, 2013 12:36 AM  

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