July Trading Journals

Discussion in 'Trading' started by Hitman, Jul 2, 2001.

  1. Actually, scalpers have the highest degree of failure! Call Online Trading Academy and ask them why they have changed their methods of training over the last two years. If they answer the question honestly, you will learn that they couldn't keep scalpers in business. Most of them went bust in a short time. Ask them about their pride in-house scalper, Adam, the guy who once executed 1700 trades in one day (it was the national record at the time). This is the same guy who made millions scalping ... and had to make a career change after losing his money and their money.

    But then again, you go for 0.25-0.5 and the stock moves against you 3 point before you can find liquidity to get out and it will take a lot of trades to make up for that one.

    As an active member of Day Traders USA, I have seen traders come and go. There are two guys whom I have the highest regards for. They both have two completely different styles. Stan Kim and Tony Oz. Stan Kim http://www.snailtrader.com has found the right trading style for his personality. Tony Oz http://www.stockjunkie.com will cut a trade loose faster than anyone I know. My trading style is a combination of what I have learned from these two traders.

    The amazing thing is that I don't see any scalpers at the meetings anymore. They all vanished over the last year. It is also a shame that neither Stan or Tony attend meetings on a regular basis. But us diehard traders go every other week :)

    #71     Jul 24, 2001
  2. Hitman


    Solid game as I was able to shake out the vacation rust early and played well with conservative size. 6600 shares on 4 of 8 shooting, +901 before commissions, +617 after, 2 bullets.

    Pre-Market: Heavy news, mixed earnings in energy/technology sector, quite a few UTY downgrades and I should have took advantage, unfortunately I rarely trade UTY stocks and didn't want to waste a bullet in unfamiliar territory. Positive earnings by PHM made me interested in construction sector.

    9:30: Very bad trade as I went long in MER on a XBD gap-down, 16 cents loss and that was a quick wake up call. Took FLR long and lost 5 cents. Saw XNG sell-off, there were a lot of mixed news in energy sector but the chart doesn't lie, shorted EOG at 32.08 and again, didn't sell enough off the first print, only 600 shares instead of the full bullet, and got 65 cents out of the trade, some choppy squeezes but I pulled out another 30 cents shorting a squeeze. Unfortunately I never saw a convincing offer so I didn't go serious size on those trades. Shorted VTS and never got anywhere, not enough volume and the stock for the most part drifted and never gave me the momentum I wanted. Barely covered the bullet cost after many small moves.

    9:45: Long IRF 33.49 for a sweet 70 cents trade on SOX pop. Very strong sector against the futures downdrift in the morning. Took RDN on IUX pop but only a nickle for that trade. Tried HP on OSX squeeze and lost 2 cents.

    10:30: Took EPG on a bounce for 30 cents profit. Market is too slow for my taste, not going to push myself too hard after a vacation . . .
    #72     Jul 24, 2001
  3. Hitman



    Boca was great, but I think New York is better for my situation. Florida is better in my opinion when I am older, or when I have someone to move down there with. To give up my entire social circle in New York to move down to Boca alone is a little unrealistic at this point, but it fully lived up to my expectation, a great place if you want to move your family there . . .
    #73     Jul 24, 2001
  4. aldrums


    Bill, you forgot to mention Sammy Chua, LOL. Didn't Daytrader's USA try to groom him into some kind of trading guru? The last time I saw that kind of promotion it was at a record company. What was the deal with that anyway?

    Just Curious,

    #74     Jul 24, 2001
  5. LOL,

    It was a Richard Rueb Exclusive Production. He was never really one of us if you know what I mean. Richard was impressed by him and tried to sell him to us. Some fell in the trap and some didn't. LOL.

    There was something about him I did not like. He is not sincere and down to earth like Tony and Stan. Actually, he got into lots of trouble with one of the ladies during his presentation because he said nasty things about Wade Cook. And she was a Wade Cook fan. It got ugly. He didn't get his presentation back on track. It was all down hill from there.

    #75     Jul 24, 2001
  6. Hitman


    Black gold, that is what today's game was about. While my execution in the afternoon wasn't that hot, I really liked the way I handled pressure after I went 3 for 11 in the morning and down $300 by 11AM . . . I was able to keep my composure and came back with one connected shot thanks to a bottomfish. Then, the goddess of luck just shined upon me as the OPEC cut their inventory, causing a massive energy rally, and dropped a gift in my lap. While I was unable to take full advantage, missing most of the initial move and didn't pyramid into positions in time, I managed to put together my third $1000+ game of the month.

    7 of 16 shooting on 15400 shares, +1584 before commissions, +1164 after, 1 bullet. +$1750 for the week, +$7600 for the month, 4 games winning streak, 23 of last 25, with a legit chance to contend for 10K mark this month, which would be a double on my original estimate. Today was the classic example of being on a roll, had I been on a losing streak I could have left early, instead, when the confidence is up, it is a lot easier to overcome the initial deficit after a very poor open performance.

    Pre-Market: DD beat, SLB beat, CEX/OSX here we go!

    9:30: XTC strength as I took AT and stopped out for a 20 cents loss. Which turned out to be the intraday low and it ran from there. Took DNA on BTK strength but the market was very shaky and I got out for flat before it ripped. Tried VTS expecting OSX rally and lost 10 cents. Shorted HP on OSX sell-off and got nowhere, couldn't recover my bullet cost on that one. CEX sold off, but I was expecting a reversal all along, yet when it happened I failed to take advantage, very very poor execution there as I moved a huge move.

    10:00: RLX rally, out of all retailers I took CVS and it refused to go anywhere and I gave up 10 cents. Tried TER on a SOX pop and grabbed 20 cents. BBY was a nightmare today despite of RLX strength it had a big seller in him and I stopped out for flat. XAL rally took CAL and stopped out for 10 cents loss. Took 15 cents out of CRA on a BTK pop. The momentum was just not there. I was down $300 on the day and playing a very poor game.

    11:00: Saw WR on NYSE losers list. Watched the tape and the specialist literally waved a flag for me to get in when he printed size volume and knocked out a size offer, took 50 cents off 1000 shares and I was instantly back in the game. The damn sun burns from Boca started to sting badly and I had to run out to get Aloe . . .

    1:00: Tried ATW and UFI and lost 5-10 cents a piece, poorly timed entry point as the specialist didn't print size, I basically jumped into stationary stocks and that is never a good thing for this kind of bottomfish plays.

    2:04: Took MU on a SOX rally but it never got anywhere, got out for flat. Started to see some momentum in OSX, followed by volume prints. On CNBC there was talk about the OPEC meeting, and all of a sudden, the indexes rocked! I should have fully expected this as the OPEC has been in meeting all day and could have came up with the inventory announcement at any time. Most of my favorites already up too much. Still, grabbed 25 cents off VTS as it refused to move. Took 25 cents off KMI, missed re-entry as it finally vanquished the sellers and took off for a 1.5 point run. Caught half a point on WFT. The one stock that saved the day was EPG, as I took 1.5 point off it (still left almost 1 point on the table). Unfortunately I didn't pyramid into it when I had the chance, could have made a lot more, and I missed a lot of laggers. Overall, OPEC handed me a gift and I should have kept more of it.
    #76     Jul 25, 2001
  7. Wtg Hitman,

    Yesterday was my best day for a while too. It sort of reminded me of the good old days!

    #77     Jul 26, 2001
  8. dozu888


    candletrader, do you trade NYSE or NAZ, intraday or swing?

    #78     Jul 26, 2001
  9. NYSE and Nasdaq, intraday solely
    #79     Jul 26, 2001
  10. Hitman


    Ouch, never would I imagine 300 shares can ruin an entire game, and it did, in spades. One touch of death blow in the hand of DST and I never recovered from that, couldn't keep my composure and churned myself into a deeper hole but managed to make some ground during the final hour, finished with my worst game since early June, and 75% of that came in one trade off 300 shares on a day I traded 20000 shares each way. I was opening the door to a much much bigger hole and I was very lucky to finish where I am today, playing uphill against a large deficit is a true test of mental endurance and I simply missed so many shots I normally make, and did not show toughness. Basically, I mailed it in after the DST disaster, as I stopped believing in that I could have pulled the game out. With the number of opportunities this afternoon, I had every chance I needed to get back into it.

    6 of 19 shooting on 20800 shares, -510 before commissions, -988.48 after. I was down as much as $1500 and I lost $750 on 300 share's worth of DST. With the pay period closing in 3 games, I must avoid disasters and keep my composure, forget going for 10K, I am shooting 42% second pay period versus 70% first half, this will NOT get it done. I am still holding on to a $2000 lead for the pay period, it is time to play with a sense of urgency to build upon this lead, DO NOT give it up! I handed a size day right back to the market with sheer stupidity, protect the lead!

    Pre-Market: DD beat earnings (CEX), HAL beat earnings (OSX).

    9:30: BTK strength, took DNA and it was very choppy, got 30 cents out of it. I have watched this for way too long and I simply ignored the energy sectors. When I realized they were going up (the indexes didn't immediately open, the stocks did), I was chasing tops, took VTS and out for flat, took EPG and lost 30 cents (it already ran 60 cents when I bought it, very dangerous to do off the open), took EOG after I saw the first print at 34.00 and I was filled at 34.45! Sector reversed and I should have got out immediately half on a bad fill, instead I waited and got out at 33.90! A very bad open performance as had I went for the energy first I would have got nice moves out of oils, instead I was hit hard by the energy reversal as I chased trades.

    9:52: Took TER on SOX pop and lost 20 cents. BKX move, took COF/PVN, lost a nickle on COF but got 40 cents on PVN. BKX and futures was very choppy in the morning and I had to get out. CEX pop, got DD and stopped out flat. Took some ROH and made 20 cents. A serious lack of momentum in the morning. Tried DNA again and made 15 cents on a BTK pop.

    10:30: The art of bottomfishing, found ENR on the losers list. Very thin, trends slowly but nicely, just the type of stock I excel at. Yet I uncharacteristically blew it. With this kind of plays you have to get out at first down tick, and you must not rush your shots. I took 400 at 20.50, got out at 20.47 immediately when I saw that the huge sizes printed at ASK didn't do anything. Took 600 at 19.99, very rushed shot, VERY, lost 20 cents as I didn't get out fast enough, very bad. But it gets worse, I bought some at .85 on a chase, went to 800 shares before the tape shows confirmation, and allowed it to go 30 cents against me. You MUST get out as soon as you see a downtick and you can not allow anything more than 5-10 cents loss when you try this type of trades, excluding slippages. Finally, I nailed it at 19.11 with a limit buy at 19.20 but I only got 600 shares filled there, sold for a nice 60 cents gain as the seller was done, but I lost way too much first two attempts. On this kind of plays, if you get it you get it, chasing equals sure death.

    11:54: A trade that I will remember for a very long time to come. Given the ENR trade, which I ended up losing money on, I knew I wasn't hot with bottompicking today, so when I saw DST on the losers list I really should have spend more time watching it. I was down $200, who cares, I know I can come back from a deficit like that very easily in the afternoon with just one or two good plays. Stock was falling like a rock, I saw huge, and I mean huge size going off at 52, I rushed and bought 300 shares before I scrolled through the tape to see that this stock has been falling through figures! This is a news stock that is falling like a rock and it is far more volatile than my usually bottompick plays. As soon as I bought, I saw the BID stepped down to 50. I should have sold market immediately, I thought the specialist was playing games, 2 prints later, 51, and I should have just ate that 1 point loss, but it was down 5 points, how much lower can it possibly go? Besides, I have 300 lousy shares, a trivial position. Risk management called me "something is up with this stock, avoid concentrated losses", and I was like, 300 shares? Boom, 50, big psychologically support level, boom, 48.50. I waited for a squeeze and got out at 49.50. This is hands down the most number of points I have ever lost since I worked at this firm, and the underestimate of how much 300 shares can hurt did it for me. When a stock is trading figure to figure, 300 shares can hurt A LOT . . . Psychologically, I was shot, I was stunned, and I could have done myself a favor if I just went home. I was lucky this afternoon that I finally hit a couple of solid shots because I really could have been blown out.

    12:00: Risk Management just announced that those traders with negative caps should avoid trading DST at all costs, I guess a lot of other people got smoked. Took MMC on IUX pop and out for flat. Took UTX for a 8 cents pop. Took SLB on AG Edward upgrade and lost 20 cents, when I trade based on news events like that I am too desperate. Took MAY on RLX pop and got out flat. Took DNA on super high volume prints and lost 20 cents. Took AT on XTC strength and out for flat. I slapped myself a few times and went for some cold water, the lunch was just delivered and I really didn't have much appetite for it. Yes, I have lost far more than what I was down before, I started to remind myself that it was all one trade (even if I can not blame on the slippage because I had quite a bit of time to get out), and if I continue to play the way I was playing I could be looking at a much bigger deficit. It can ALWAYS get worse.

    2:00: Everything started to run up. Took CVS and stopped out for 10 cents loss, stock just not ready to rebound today, . Got serious churned in DNA, really thought it would break out with BTK/Futures/Daily all pointing up, didn't happen, broken even in him across a number of trades, seller won't let this one rip. Tried WLP on HMO strength, churned away 10 cents as it would not join the rally. Took AT and lost 20 cents. Fortunately, got 1000 UTX and got 45 cents off that, biggest winner of the day and I looked at the score board, I am down 3 digits and there simply wasn't much I can do. Everything rallied and once I missed the beginning, chasing is a sure recipe to get hacked.

    Tommorrow I am looking for a solid game to close the week out, I am still up $800 for the week, don't want to give that up.

    I really don't know what happened with that trade. Normally I am a lot more careful than that. The best time to get into a position like that is when a stock comes down stepping with size, and you limit buy just as it takes out a large offer. In the case of DST, there was no offer, there could have been any number of shares to go and it was like playing chips at a casino to jump in. Very very bad shot, and it was made far worse due to the inability to take the point hit immediately.
    #80     Jul 26, 2001