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

Monday, March 12, 2007

Seeing Green & A Re-vamped Daily Post

Gross: +$322.00
Net: +$236.25
Loss From Top: $44.31
Trades: 55
Shares Traded: 110600

Stocks Traded Today (net profit/loss):
Dollar General Corp. (DG): +$135.74
Federated Department Stores (FD): +$102.22
Hewlett-Packard Company (HPQ): +$98.18
Micron Technology (MU): +$88.71
Pfizer Inc. (PFE): +$84.72
Constellation Energy Group Inc. (CEG): +$71.46
Sierra Health Services Inc. (SIE): +$24.38
ConocoPhillips (COP): +$23.95
Cooper Tire & Rubber Company (CTB): -$1.57
Eli Lilly & Co. (LLY): -$12.61
The Goodyear Tire & Rubber Co. (GT): -$31.23
Nortel Networks Corporation (NT): -$59.20
AK Steel Holding Corporation (AKS): -$66.23
General Electric Company (GE): -$105.55
Titanium Metals Corporation (TIE): -$116.71

Green....

I miss seeing that color in my blotter. Though today was hardly impressive on my part, I'm just very glad (and somewhat relieved) that I ended the day in the green.

I really tried to take it easy today and I tried not to get myself all riled up.

This morning was the first morning in a while in which I didn't start the day off with consecutive losers. I really tried to sit and be patient for the trades to show themselves.

Over the weekend, I compiled a new list of stocks to focus my attention on. I was mainly looking for stocks that would move and had less volume than the typical stocks I was used to trading.

But today I didn't put on any positions with much conviction and I wasn't really able to take any good swings. There were two bone-head trades I put on that I shouldn't have.

The first one was on General Electric (GE)...I just go in at the wrong time after the Futures had ripped up. The second one was on Titanium Metals (TIE)...I don't know why I put that trade on as the chart all morning just looked ugly.

Starting today, I'm going to re-vamp my daily posts a little to include more charts and setups.

In addition to outlining my good and bad trades, I'll add two new categories called "Missed Trades" and "Failed Setups".

In the "Missed Trades" section, I'll outline a few trades that I was watching, but missed getting into. The reason I would miss getting into the trade is that either I was too slow and was unable to get shares at the desired price or my focus was elsewhere at the time.

Keep in mind that I'm the kind of trader that doesn't like chasing a stock. Usually if I've identified a level and I miss the break, I usually will not chase a stock to get into a position. I don't know why....it's just the kind of trader I am.

In the "Failed Setups" section, I'll outline a few trades that I actually took because of a good setup, but ultimately failed and I either had to get out for break-even or a loss.

By adding these two new sections to the post, I hope to further force myself to analyze what I may be doing wrong and what I may be doing right with my trades based on what the charts show.

I'll try my best to remember to write down these kinds of trades in my trading journal so that I can post them up in the evenings.

Please note that the setups presented are not the only kinds of trades I take. Sometimes I just see an opportunity for a quick scalp and I'll take it. Instead, what will be presented are the setups to trades that I had intended to hold for longer period of time.

Also, from here on in, I'll post 5-minute charts instead of my usual 1-minute charts....they're just much cleaner to work with and label.

*Sigh* This is going to mean much more work on my part, but I hope my trading will benefit from this extra analysis and hopefully it also gives you folks more of an idea of what I look for in a trade.

With that, there were 4 missed trades (mainly because I was focusing my attention on a CEG trade) and I also placed that CEG trade in the "missed trade" section because I got out too early on a trade I was intending to hold till the end of the day.

There was one failed setup and no good trades nor any bad trades.

Let's see how long I can continue with these kinds of posts (in other words, let's see how long before I start getting lazy with these kinds of posts)...

Missed Trades
(trades that I was watching, but missed because either I was too slow and couldn't get shares or my attention was focused elsewhere)

  • Constellation Energy Group (CEG) - I went long on a break of it's intra-day high and only managed to get 300 shares...my intent with this trade was to hold onto it for the entire day or exit when I saw two red candles on a 5-minute chart. I held onto this position when I saw the first pair of red candles, but on the second set, I exited. I've got to work on my exit strategy for this kind of trade...since my attention was focused so much on this trade, I missed several other good breaks (see below)

  • Alcan Inc. (AL) - I was waiting for the $53.50 level to break (intra-day high), but I missed it as I was tending to the CEG trade


  • Federated Department Stores (FD) - missed break of long-time resistance at $45.00....tried to go long 4000 shares on break, but didn't get any shares...the break of this level was extremely quick


  • Hovnanian Enterprises (HOV) - missed break of intra-day low...I tried to get short a few times, but I just couldn't get any shares


  • Trina Solar Limited (TSL) - I was kind of wary about trading this one since it was very thin and the spread was horrendous, but I was keeping an eye on the $44.25 level (intra-day high), but I missed it as I was tending to the CEG trade (was only going to trade 100 or 200 shares on this one)


Failed Setups
(trades I took that I thought had a good setup, but failed and either I got out at break-even or for a loser)

  • AK Steel (AKS) - broke intra-day high, but quickly reversed...got out for a loss


Good Trades
(trades in which I make $200 or more)

  • None


Bad Trades
(trades in which I lose $150 or more)

  • None

Labels:

7 Comments:

  • If you look your charts they look like pinoys swing setups but on 5min charts not 30min. In a year you will have to change your blog name to NYSE swing trader's Tale. I know you prefer to scalp but there is a lot's of potential in your setups. After a month of posting this kind of charts make a review to see what would be best way to utilize this kind of opportunities.

    By Blogger FX, at March 12, 2007 6:54 p.m.  

  • Glad to see you back in the green.

    By Blogger Bubs, at March 12, 2007 7:12 p.m.  

  • FX,
    Thanks for your comments. Yea, I sort of based them on Pinoy, Trader-X, and Dummy-style setups. In the past, I used to just scalp stocks that broke their intra-day highs/lows, but by applying this new setup, I'm hoping to capture bigger moves. I told myself that once I start holding positions for longer periods of time, that this blog will be renamed "An NYSE Trader's Tale". Hopefully that can happen sooner rather than later!

    Bubs,
    Thanks for your comments. Yea, it was another one of those days where I just wanted to stop the bleeding. Good luck to you and your trading this week!

    By Blogger J.C., at March 12, 2007 9:36 p.m.  

  • JC: thanks for the update. Congratulations on the green day. Your reads were good; just need to get into positions a bit sooner. A complete fill on CEG would have been great. With all respect to traders suggesting longer positions; may I suggest that you stay with scalping. Take profits. You can get back in if higher resistance is taken out. Also, I'm finding short positions are very slow to fill unless trading q's or oih etc. Also thanks for the new format.

    By Blogger Gordon, at March 12, 2007 9:49 p.m.  

  • The new format is definately better than the other. Keep it this way please.

    JB....

    By Anonymous Anonymous, at March 12, 2007 11:23 p.m.  

  • JC,
    Thanks for going to the effort to post those charts. Very interesting to see what you were thinking and when, and especially seeing how you handled the ones that flipped over on you.

    By Anonymous Will, at March 12, 2007 11:30 p.m.  

  • Welcome back to the green!! And thanks for the informative charts.

    Ah, I want to watch the Futures as you do when making trades. How can I look them up? What are the symbols? Thank you in advance!

    By Anonymous Anonymous, at March 13, 2007 1:10 p.m.  

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