Scalping Journal

Discussion in 'Journals' started by eusdaiki, Dec 11, 2006.

  1. I want to start this journal to record my progress as a scalper. I haven't traded any markets for several months, Im going to be scalping stocks with a volume of no less than 2 million shares per day and that are part of the SHO pilot program [no uptick rule].

    I trade from level 2 and TAS data, no charts [at the most I use them as reference]

    Today I started trading on TDW. I started with trading it with good results, on 100 share lots. After 23 trades I was tied with the market at -$1 gross... after that things got ugly in 4 consecutive bad trades I lost 1,5,2 and 10 cents reaching my max loss for the day at -22 gross [max loss is 20 cents for now, I might adjust it to a tighter stop later].
    I felt that as the day progressed I became slower at identifying the change of directions in the stock, and that caused me to decrease my performance. I had several scenarios where I would lose money attempting to do a long, and then by the time I came around to do a short I lost money there too...
    I need to work on my endurance to be able to trade profitably.
  2. Today I got killed.
    My excecutions where sloppy, I didnt get to feel the direction of the markets and my attention span was very low... Totally out of focus.

    -20 gross -22net after 10 trades.

    Lesson of the day, if you're not focusing on sim mode, stay on sim mode.
  3. There is hope.

    60+ trades

    Net $38 Gross $67

  4. It was quite a fun day.
    Started trading at 13:00.
    Did most of my trades on HR. scalping the spread taking from 3 to 5 cents per trade... with up to 300 shares. :D

    now that was fun. :D
  5. The plan was simple...

    Buying at 62.29 selling at 62.30 on EXC. The stock had been going up and down between .31 and .29 for several minutes. I place my bid and wait a few minutes with no luck. Then size vaporized and the stock drops... exec 800 shares at .22 for a nice -56 loss...

    Well I learned a couple of lessons

    1 dont try to play a stock that's worth >$60 for credits... :(
    2 dont inflate your volume on a given trade... use it same size all day... give or take a couple of hun...
    3 trend is your friend...
    4 dont go in/out of trades for 1 cent profits... at least 2 cents...

    Aside from this horrendous trade the day was actually quite good. I was up $36 gross, down $17 net... on 300 share lots and 92 trades [46 round trips].
    not the best day but not so bad either. Could've ended on the green with a little caution.
  6. I don't know how I was able to call the bottom so precisely in CMG. I wish I knew, that way I could do it again, this time buying the stock [not shorting it, like I did today... right at the bottom...] Afterwards liquidity evaporated quite nicely and my 600 shares [two 300 share orders filled at pretty much the same time...] look like a lot of volume... Lost 20 cents getting rid of them... but I gainned a couple of lessons.

    Dont short stocks that are so far below VWAP... in those cases enter long first.

    Dont rush into moving larger blocks... I would get back to large volumes in time, no need to rush it, and dont put two limit orders...
  7. No trading yesterday, had a final exam in school... so I decided to focus on studying for one day...

    now... let's make some money. :D
  8. good day today.
    +67 net +155 gross.
    I followed my rules didnt screw up.
  9. Midas


    Since scalping is very expensive and you are taking small profits; what commission do you pay per share?
  10. $0.14 per trade. I trade through Swift Trade...

    One thing I forgott to put down yesterday, I listened to classical music during trading... that helped me in remain calm.
    #10     Dec 20, 2006