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

Tuesday, January 02, 2007

Trading Statistics For December 2006

Total Gross for Month of December: +$6,530.28
Total Net for Month of December: +$4,258.74
Total Fees (Gross - Net) for Month of December: $2,271.54
Total Trades for Month of December: 1,483
Total Shares Traded for Month of December: 2,234,320

Best Day for Month of December: Mon Dec 11 (+$1,116.29 net)
Worst Day for Month of December: Fri Dec 29 (-581.87 net)

Number of Positive Net Days for Month of December: 13
Number of Negative Net Days for Month of December: 6
Number of Trading Days Missed for Month of December: 1 (took day off on Canadian Boxing Day)
Number of Trading Days Lost Due To System Downtime: 0

Compared to Previous Month: +$842.46 (up 24.7% from previous month)
Compared to Same Month Last Year: +$3,453.81 (up 429.1% from same month last year)

Net Profit Distribution (# days):
(Excellent) +$1000 OR MORE: * (1)
(**Good**) +$500 TO +$1000: **** (4)
(*Average*) +$200 TO +$500: ****** (6)
(***Poor***) -$200 TO +$200: **** (4)
(****Bad****) -$200 TO -$500: *** (3)
(**Terrible**) -$500 OR LESS: * (1)

Top 3 Stocks For Month of December (Net Profit):
Rite Aid Corporation (RAD): +$1,133.72
Time Warner Inc. (TWX): +$845.53
DIRECTV Group Inc. (DTV): +$390.42


Worst 3 Stocks for Month of December (Net Profit):
ConocoPhillips (COP): -$471.21
Terex Corporation (TEX): -$237.35
Alcatel-Lucent (ALU): -$216.70


Total Number of Different Stocks Traded for Month of December: 77

List of Stocks Traded During the Month of December (with net profit):
Advance Auto Parts Inc. (AAP): -$72.11
AK Steel Holding Corporation (AKS): +$97.55
Alcatel-Lucent (ALU): -$216.70
Advanced Micro Devices Inc (AMD): -$178.34
American Express Company (AXP): -$33.24
Bank Of America Corporation (BAC): -$24.60
Best Buy Co. Inc. (BBY): +$49.46
The Bank of New York Company (BK): +$385.01
BellSouth Corporation (BLS): +$110.97
Peabody Energy Corporation (BTU): +$7.58
Biovail Corporation (BVF): +$13.03
Citigroup Inc. (C): +$304.10
Christopher & Banks Corporation (CBK): -$25.26
Circuit City Stores Inc. (CC): +$183.40
Celanese Corporation (CE): +$239.35
Chesapeake Energy Corporation (CHK): +$24.10
Caremark Rx Inc. (CMX): +$141.68
The Cooper Companies Inc. (COO): -$30.06
ConocoPhillips (COP): -$471.21
CSX Corporation (CSX): -$22.36
Cemex (CX): +$41.47
Cypress Semiconductor Corporation (CY): -$22.07
DuPont (DD): -$84.98
Walt Disney Company (DIS): -$2.22
Darden Restaurants Inc. (DRI): +$86.17
DIRECTV Group Inc. (DTV): +$390.42
Duke Energy Corporation (DUK): +$8.78
EMC Corporation (EMC): +$348.86
Ford Motor Company (F): -$145.43
Family Dollar Stores Inc. (FDO): -$77.82
General Electric Company (GE): +$64.32
Corning Incorporated (GLW): +$153.19
General Motors Corporation (GM): +$363.99
The Gap Inc. (GPS): -$155.68
Realogy Corporation (H): -$3.99
The Home Depot Inc. (HD): +$200.61
Harrah's Entertainment Inc. (HET): +$16.27
Honeywell International Inc. (HON): +$9.08
Hewlett Packard Company (HPQ): +$60.36
The Hershey Company (HSY): +$7.18
Intl Business Machines Corp. (IBM): -$6.63
Interpublic Group of Companies Inc (IPG): +$18.69
Jabil Circuit Inc. (JBL): +$110.26
J.C. Penney Company Inc. (JCP): -$26.87
Johnson & Johnson (JNJ): -$157.25
CarMax Inc. (KMX): -$124.43
The Coca-Cola Company (KO): +$226.05
The Kroger Co. (KR): +$185.28
L-3 Communications Holdings Inc. (LLL): -$48.68
Eli Lilly & Co. (LLY): +$40.94
Lowe's Companies Inc. (LOW): -$11.39
LSI Logic Corporation (LSI): +$12.07
Merck & Co. Inc. (MRK): -$53.96
Morgan Stanley (MS): -$117.11
Micron Technology Inc. (MU): -$20.73
Nortel Networks Corporation (NT): +$16.55
Nucor Corporation (NUE): +$33.04
New Corporation (NWS): +$206.63
NYSE Group Inc. (NYX): -$84.13
Pfizer Inc. (PFE): -$180.12
Rite Aid Corporation (RAD): +$1,133.72
Red Hat Inc. (RHT): +$160.63
Safeway Inc. (SWY): +$104.08
AT&T Inc. (T): +$103.21
Terex Corporation (TEX): -$237.35
Time Warner Inc. (TWX): +$845.53
Texas Instruments Incorporated (TXN): +$164.63
UntiedHealth Group Inc. (UNH): -$93.53
U.S. Bancorp (USB): +$267.65
United Technologies Corporation (UTX): -$16.95
Valero GP Holdings LLC (VEH): -$17.38
Valero Energy Corporation (VLO): -$34.92
Walgreen Company (WAG): +$39.86
Wal-Mart Stores Inc. (WMT): +$174.16
Worthington Industries Inc. (WOR): -$97.61
Weyerhaeuser Company (WY): +$287.87
Quiksilver Inc. (ZQK): +$106.23

Monthly Recap
Wow! Would you look at the number of stocks I traded this month!

December was a month of trying new things and trading new stocks. I mainly focused on trading stocks in the news, but I found that I had to also continue trading stocks that I'm used to trading for whenever the stocks-in-the-news weren't doing anything.

Usually the number of stocks I trade during the month hovers around the 20 - 30, but this month it was 77!

When I did trade the stocks-in-the-news, I kept my position sizes small - usually around 500 shares or so. I'm finding that my patience when trading these stocks needs to improve greatly if I want these kinds of trades to really work out.

But if I want to move on to the next step, I'm going to have to cast my fears aside and go in with positions that count. This will mean that in the months to follow, I either have to go in with a bigger position, or I have to scale into a large enough position for any substantial move to matter.

I'm glad that these past few months my numbers are on the way up again...but I've stated many times before that my numbers must improve way more than where they currently stand.

In the month of December, I decided that enough was enough and I was tired of trying to do the same things over and over again with results that did not please. I'm glad I had the courage to begin trading thinner, faster moving stocks and I'd have to say I got used to it fairly quickly.

Unfortunately I tried doing this in the month of December - a month that slows down and news-related stocks slows to a trickle. BUT, I'm glad I go started on this game-plan during this last month of 2006, which I'm hoping gives me enough practice to go into 2007 full steam ahead.

Also in the month of December, I started posting my "On Tap" posts and I'm finding it to be of great help. Instead of just writing down in my trading journal the stocks that are in the news, I'm finding that if I post them up, they are more concrete in my mind during the following trading day and that I seem to retain a lot more details about the stock.

Anyways, in short, December was a month of testing the waters and I'd have to say it was fairly successful. I shall continue with this strategy in 2007.

What was good in December?
  • A little more patience with my positions, both in riding winners and in waiting for the trade to work itself out
  • I was actually willing to take on more risks and to try something new (as I was tired of the same-old same-old)
  • For most of the month, I was fairly good at sitting, waiting, and observing and for waiting for trades to show themselves
  • There were many more 10-cent+ winners this month, mainly due to the fact I traded more stocks that were moving (however, most of these trades were on small share size)
  • I GOT NEW CHARTS! I no longer had to second guess myself as to what I was seeing on the charts and I had one less distraction during the trading day (what with all those application restarts I had to do)
  • By constantly looking for stocks in the news, I was able to keep myself out of boredom trades a lot more, simply because if a trade didn't look very good, I'd want to change stocks to see if there were possibilities elsewhere (whereas before when I mainly watched only a few stocks, I traded what looked the best at that moment)
And things not soo good in December?
  • I still didn't have the courage to put on bigger, more meaningful positions - even when everything told me it would be a great trade, I still was hesitant to put on a bigger position
  • Near the end of the month, I succumbed to boredom trades, mainly because there were fewer stocks in the news and a lot less movers out there
  • There were 6 trading days in which I ended the day negative...this is tied for the most in a single month; many of those negative days could have easily been avoided
  • Though more patience was demonstrated in December, a little more could have been welcomed
  • Again, another month in which I trusted the Level II more than the charts - I always ended up dumping most of my position because of something I saw on the Level II (even though the chart looked good)
Here are some things I'd like to work on in January:
  • Trade the charts more than the Level II - there were many times I only caught 1/3 or 1/4 of a move simply because I saw something on the Level II and exited my position
  • Be braver and take on bigger positions
  • I've got to change my thinking a bit - instead of constantly asking myself "Where should I exit my position?", I should be asking myself "Where should I add to my position?"
  • If I'm going to trade the thicker stocks, I should use a minimum of a 10,000 share position - no more measly 5000 share positions...this should have me looking for better setups
  • Continue looking for opportunities to trade any stocks that are in the news or stocks that are gapping
  • I must be more mindful of how the Hybrid stocks move and not panic when it does something I'm not used to seeing
A Quick Summary Of 2006
I'd also like to make a few comments about my trading year that was 2006.

I had started 2006 excited as ever - full of confidence, full of hopes. Well, 2006 didn't turn out as I had expected and I can definitely say that it was an emotional roller coaster ride.

I kept my trading strategy more or less in place for most of the year. I did have trouble trying to cope with larger share sizes and it took me a few months to adjust and by the middle of the year, I THOUGHT I was on track to where I wanted to be.

But then the 2nd half of 2006 turned out to be a total disappointment. My profits sagged along with my confidence, morale and my emotions. As the months went on, I found it harder and harder to trade...perhaps it was the emotional baggage I was carrying from the disappoints of the previous months, or perhaps it was from me trying too hard.

Near the end of 2006, I had enough of going nowhere with my trading strategy and forced myself to start looking elsewhere....that's where the stocks-in-the-news trading came about.

If I were to sum up my trading disappointments in 2006, I could do it in one word: fear.

As I look back and reflect, I can clearly see that fear was the one component that had the most impact on my trading and the one thing that is probably preventing me from being where I want to be.

It seemed like just before I get into any position, I stop and I get fearful of how much money I can potentially lose on the trade. As a result, I always found myself reducing my share size just before getting into a position.

And this seemed to dictate everything I did.

Fear didn't only appear before getting into a position. It would also appear while I was in a trade...I would always take my profits too quickly because I was fearful I would lose those profits if I didn't take them right then and there.

It was also fear that had me miss many great trades in 2006.

Whenever a new year rolls around, it gives people hope that it will be a great year and it often gives people an excuse to make changes. With that, I too am going to try to change the way I do things in 2007.

If there is a year in which I have to prove to myself I can do this, it will be in 2007. I've said it many times before, but I never seem to be able to follow through on my words: I must take on more risks if I want to get to where I'm going.

This'll mean that my daily P&L SHOULD fluctuate a lot more. In all of 2006, I was comfortable with what I was doing because it was SAFE, but I was not happy with the results. Well, if I wanted to be safe, I might as well get a regular 9-to-5 job. If I want to play this game, then I have to actually PLAY this game.

If 2007 is the year in which I must prove myself, then I've got to do everything in my power to make it happen or go bust trying!


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7 Comments:

  • Wow sounds like you had quite a year. Excellent set up for your blog and your posts. I can tell you are putting a lot of time in to it. Keep up the good work. Have a happy and prosperous 2007 :)

    I am new to this whole blogging thing. My website is
    www.thekingofinvesting.com

    By Blogger Ben, at January 02, 2007 4:31 p.m.  

  • Awesome summary JC! You'll do great in 2007 - I just know it!

    For trading on news and earnings reports, I love to use the following Yahoo! info./resource. For your fellow blogger fans... if you haven't checked out this free info. - do so! and happy trading for 007!
    (dir-dirdir-dir-dir [insert theme music for Bond here]

    http://biz.yahoo.com/research/earncal/today.html

    Cheerios.

    By Anonymous Anonymous, at January 02, 2007 4:35 p.m.  

  • WOW, JC, you did a great job! I wish you can improve your trading skills in 2007. So do I.

    By Blogger ADAM, at January 02, 2007 6:04 p.m.  

  • Ben, Anon@4:35PM, Adam,
    Thanks for your comments and thanks for the encouragement. Here's wishing you the best of luck in 2007 and some great trading!

    By Blogger J.C., at January 02, 2007 7:47 p.m.  

  • Interesting site and comments on your experiences. Would like to do better myself and hope to learn from you. Thxs for your sharing.

    By Anonymous Ron, at January 05, 2007 4:11 p.m.  

  • Ron,
    Thanks for your comments and compliments! I hope to learn much more as the years go by so hopefully my readers can learn along! Good luck to you and your trading!

    By Blogger J.C., at January 05, 2007 8:48 p.m.  

  • Great blog - wonderful insights JC ...can you please send me your email address - I can't seem to find it on your site. I'm Claude in Toronto at
    katz1410@yahoo.com

    By Blogger claude, at January 13, 2007 1:09 a.m.  

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