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

Wednesday, April 11, 2007

Couldn't Find Anything Good To Short

Gross: +$414.20
Net: +$403.17
Trades: 57
Shares Traded: 56200

Stocks Traded Today (net profit/loss):
Chico's FAS, Inc. (CHS): +$267.32
The Progressive Corporation (PGR): +$81.07
The Gap Inc. (GPS): +$72.43
Gold Fields Limited (GFI): +$57.48
American Home Mortgage Investment Corp. (AHM): +$45.08
Clear Channel Communications, Inc. (CCU): +$20.54
Tele Norte Leste Participacoes SA (TNE): +$10.07
Wal-Mart Stores, Inc. (WMT): -$25.84
The Mosaic Company (MOS): -$124.99

Today I took my trading up a little notch by increasing my share size by a little bit so that my position sizes were between 1000 - 2000 shares.

The last little while I've been using 500 - 1000 shares just to get myself back in a groove and now I feel a little more comfortable increasing share size again.

Just had a simple game plan today....get in and get out fast. I wasn't expecting as much movements in the overall markets as we experienced this morning....I was thinking it was just going to be choppy or flat until the FOMC minutes.

Nonetheless, I was just happy to get in and out quickly even if my gains could have been a little more on some of my positions.

I may continue to up my share size little by little for the rest of this week and if things go well, I'll up using position sizes I was using before the dreaded month of March occurred.

There were a couple of trades in which I felt I could go in with a bigger share size, but I didn't want to do anything that would beat my confidence level down again, especially since my confidence level had been stuck in the basement for the better part of a month now.

I didn't really capitalize on much in the morning since the Futures kept going down and for some reason, all I could find were longs, so I had to pick my spots carefully.

Then from 11AM - 2PM it was a real snoozefest....I just tried to keep acutely aware not to do something foolish. I decided to stay after lunch just to see what the markets would do after the FOMC minutes.....

As you can see, the markets moved down a bit after the FOMC minute release. Unfortunately I wasn't able to capitalize on that down move....and again, for some reason, all I could see were longs.

I've also noticed that lately my trading fees have been getting smaller and smaller.

One of the more obvious reasons is that I was using smaller share sizes (and hence the fees for trading are smaller).

Another reason is that I've been receiving a lot of credits for adding liquidity using Arca and ISB. As some of you know, you'll receive a credit of $2 per 1000 shares for adding liquidity (for those who have flat fee trading or set trading fees, you won't be able to take advantage of these credits).

Take today as an example....the difference between my gross and net is only $11.03.

The reason is because my ECN fees for the day was -$11.88. Yup, you read that right....this means I received a credit for executing my trades using the ECNs that I do.

Keep in mind that the way I trade is that I'll usually punch into a position (remove liquidity), but when it comes time to exit a position, I'll add liquidity using Arca or ISB just so that I can collect the credits for doing so.

This helps offset my trading costs greatly and will have more of an impact if I were trading more shares or if I did lots of trades during the day.

Just thought I'd throw that in as I've been getting quite a few emails regarding my fees.

Anyways, there were no good trades nor any bad ones. I was in and out too quickly to really realize any big gains.

Tomorrow I'll turn it up a notch....


Good Trades
(trades in which I make $200 or more)
  • None

Bad Trades
(trades in which I lose $150 or more)
  • None

Labels:

6 Comments:

  • Can you tell me what your commissions were on 56200 shares. And where can I find more info on the trading credits that you talk about? Thanks.

    TonyB

    By Blogger TonyB, at April 11, 2007 7:46 p.m.  

  • TonyB,
    Thanks for your comments.

    As mentioned in my post, I had a credit of $11.88 for my gateway fee (or ECN fee). The difference between my gross and net was $11.03. This means that the $11.03 consisted of my execution fee (goes to the prop firm), SEC fee, clearing fee (goes to Morgan Stanley), and the NASD fee.

    Had I not had credits from the ECN fee, you can see that my costs would have been doubled.

    For more info on Arca fees check here:

    http://www.nyse.com/productservices/nysearcaequities/1157018931977.html

    Alternatively, you can check this thread at EliteTrader:
    http://www.elitetrader.com/vb/showthread.php?threadid=46482

    Lastly, I just found this page:
    http://www.tradewallstreet.com/orderrouting.htm

    Hope it helps!

    By Blogger J.C., at April 11, 2007 9:27 p.m.  

  • How much money do you trade with everyday?

    By Blogger Jon, at April 12, 2007 12:20 a.m.  

  • Jon,
    Thanks for your comments. I have a buying power of $900,000 and stays at $900,000 no matter how much I gain or lose.

    Hope it helps!

    By Blogger J.C., at April 12, 2007 3:49 p.m.  

  • j.c,
    Im newbie at this, so you spend 900k a day, and only make 4-6 hundred dollars a day? Do you spend all of that 900k daily?

    www.JonWaraas.Com

    By Anonymous Jon Waraas, at April 13, 2007 9:00 p.m.  

  • Jon,
    Thanks for your comments. No....when I say I have a buying power of $900,000, that means my position cannot be over $900,000 (i.e. the maximum I could buy is 100000 shares of a $9).

    I usually never go anywhere near that amount when I trade. Also keep in mind that I don't hold overnight positions and all I'm doing is day trading.

    Just because I have $900,000 of buying power, doesn't mean I use it all...most of the time, I'd say I only use about $100,000 on any one trade.

    Hope it helps

    By Blogger J.C., at April 14, 2007 10:20 a.m.  

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