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

Wednesday, February 07, 2007

Just Keep Chugging Along...

Gross: +$932.00
Net: +$765.84
Loss From Top: 0
Trades: 66
Shares Traded: 152200

Stocks Traded Today (net profit/loss):
Cameco Corporation (CCJ): +$539.82
EMC Corporation (EMC): +$229.09
Infineon Technologies (IFX): +$188.56
National-Oilwell Varco Inc (NOV): +$160.46
CB Richard Ellis Group Inc (CBG): +$98.41
General Electric Company (GE): +$41.83
Motorola Inc (MOT): +$39.19
Corning Incorporated (GLW): +$33.84
Pfizer Inc (PFE): +$11.07
Computer Sciences Corporation (CSC): -$5.95
Lear Corporation (LEA): -$22.06
Embraer-Empresa Brasileir de Aero (ERJ): -$155.91
Time Warner Inc (TWX): -$172.20
DirecTV Group Inc (DTV): -$220.30

Well, not much for me to say about today's trading day...

Just kept doing what I've been doing the last two weeks or so. I'm glad to see some consistency appear in my trading.

I'm also finding that I no longer worry about some of the losing trades I sometimes take on during the trading day. If I lose $100 or even $200, I no longer fret too much about it (whereas in the past, I would have been really upset because it was rather difficult to make that kind of money back).

But lately with the new trading plan I have in place, I figure that that $100 or $200 can easily be made back on a single trade. I think the biggest thing that has helped my trading these last few weeks was my decision to move to using 5-minute charts.

Things just seem so much clearer during the trading day and with the 5-minute charts, I can quickly assess whether a stock is a good trading candidate or not.

Add to it a little more patience in holding onto positions and those $100 or $200 losing trades seem fairly easy to overcome in the long run.

It's because of this that I'm finding myself more patient in waiting for a good trade setup. In the past when I thought that a $100 or $200 loss would be hard to recover, I would find myself over-trading because I would get myself into trades that were only partial setups and hope it would turn in my favor.

But now I'm much more comfortable waiting for a good trade because I know that with my new charts and that little extra patience, any losing trade can be easily overcome. Obviously my patience still has a long way to go, but at least it's allowing my to capture more 10, 25, and 50-cent moves, whereas in the past, all I kept trying to do was capture 2 or 3 cents.

Well, today is mid-week and I'm already feeling quite exhausted from the week of trading so far. I don't know why, but as the week progresses, I keep finding myself more and more tired as the week goes on.

So far this week, I have been trading for the whole day...maybe it's because of me constantly looking for stocks to trade during the day and the constant flipping of one chart to another that has me mentally exhausted.

Perhaps it's a good idea to take some afternoons off during the week just so that I can recover...I'll see how I feel the remainder of the week.

One good trade and no bad ones today.

There were a couple of stocks today that I just couldn't seem to catch a break on. I traded DirecTV (DTV) a few times today, but they all ended up as losers. I found that all day today that DTV would move up and down and it constantly had me going for the exits.

Embraer-Empresa Brasileir de Aero (ERJ) was also moving today, but for the life of me, I couldn't seem to trade this one properly and I ended up with a few losing trades on this one as well.

I don't know if you can tell, but I'm really straining to think of things to write in this post...as I mentioned, I've been feeling really tired the last few days....it could be because of the extremely cold weather out there (with the wind, it's been feeling like -30 degrees Celsius, or about -22 degrees Fahrenheit)...I don't know.

Let's see if I can continue this consistency for the rest of this week....

Good Trades
10:20:24AM - Cameco Corp (CCJ) was moving up and had just broken it's intraday high. When the $37.50 level broke, I got partially filled for only 400 shares. As CCJ moved up, I added another 600 shares at $37.60 (thus, I was long 1000 shares total). I got rid of half my position a little too early, but I held the other half until CCJ just seemed to roll over. I got out as follows: 4-cent winner (100 shares), 14-cent winner (100 shares), 15-cent winner (300 shares), 65-cent winner (500 shares) ($388 profit before fees ; Long 400 shares @ $37.50, Long 600 shares @ $37.60 ; Out: 10:24:14AM)


Bad Trades
None.

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8 Comments:

  • JC,

    Great work for consistent ~1K every day!

    By Anonymous zbs, at February 07, 2007 7:46 PM  

  • Hi JC,

    I have been following your blog for a while and really appreciate your efforts. For newbies like myself ... would you mind sharing some basic tips

    1) Which software/brokerage firm do you use for trading
    2) You mentioned the system locks you down after you loose $600 on a day .. how does that work?
    3) Please pardon my ignorance here .. but too short (or go long) I am assuming you are using margin accounts?

    I read the article about your trade journal and found it really useful but was not able to find anything about what a typical day is like for you (in terms of using trading tools, creating filters for possible trades etc.)

    Thanks again for sharing your experience : )

    -AK

    By Anonymous Anonymous, at February 07, 2007 8:15 PM  

  • DTV's 5-min chat has shown the clear trend in first 40 min today, but I assume you missed this part...

    By Anonymous Anonymous, at February 07, 2007 8:22 PM  

  • ZBS,
    Thanks for your comments. Just need to keep it going and hopefully I can get as consistent as you! Good luck to you and your trading!

    AK,
    Thanks for your comments. I currently work for a prop firm, so I use their software (it's in-house developed). Since the software we use is in-house developed, the shutdown is automatically done by the system. The shutdown amount is calculated by looking to see what your P&L has been for the last several trading days...if your P&L has been high the last few trading days, your shutdown amount is higher...if you have performed poorly, then your shutdown amount goes down. The branch manager assigns each trader with buying power and the branch manager has the power to increase it or decrease it if he want to. Hope it helps!

    Anon@8:22PM,
    Thanks for your comments. Yuppers - I didn't know that DTV was moving until about half an hour into the trading day...and guess when I started trading it....right around the time DTV started testing the $26 level! Ha! Talk about bad timing! It was too bad too because when I brought up a chart on DTV I was thinking "Dang I missed some good moves on it this morning!". Hopefully you were able to catch some of that nice move up!

    By Blogger J.C., at February 07, 2007 8:34 PM  

  • Great job with the consistency. I'm glad to see you having success with longer timeframes.

    By Blogger Michael, at February 07, 2007 8:49 PM  

  • Michael,
    Thanks for your comments and thanks for your vote of confidence. I just wished that I had turned to 5-minute charts a long time ago...I'm just glad that I was willing to switch over now. Good luck and good trading!

    By Blogger J.C., at February 07, 2007 9:04 PM  

  • GOOD JOB ,jc!!
    your progress is clear!!
    which software are you using to watch charts?ESIGNAL ,CHARTWARE or other?

    By Anonymous wj, at February 08, 2007 6:33 AM  

  • WJ,
    Thanks for your comments. I switched to eSignal back in December and it really made a lot of difference from Chartware. It seems like Chartware still has many problems with it and I remember a couple of times I had to trade with no charts when I was using it. I'm glad I switched to eSignal...it seemed like once I made the switch to eSignal, I've been able to really work on my trading plan. Good luck and good trading!

    By Blogger J.C., at February 08, 2007 7:21 AM  

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