Best or Worst Trades Ever

Originally posted by rs7

A guy I was trading with (major hitter) saw on the news wire that a 6mm share buy order (mkt on close) was entered by some institution. (probably an mutual fund?). It was in AOL. He calibrated his watch to NYSE time exactly. At about 5 seconds before the close, he put in a market order to short a TON of shares. 40,000. Now this was when AOL was a high flier and high priced. The 4pm closing price was what it was....don't remember exactly. At about 4:10, when they had matched orders, it printed 12 pts. higher than the prior trade. So now he had sold short the stock at that high price. The next morning, on the consolidated tape, it opened DOWN 4 pts., but that was still UP 8 pts from the 4 pm close, so he made 8 pts. on a trade he was virtually positive was going to work.

RS7
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Sorry rs7, I do not understand: your friend shorted AOL at the market, when the next morning the price was up 8 pts from the 4pm close, then he had a loss of 320k. If he managed to sell at the 12pts plus price he then had a profit of 4x40000 shares the next morning, because the price dropped by 4 pts ?????

Thanks for your patience

Bernd Kuerbs
 
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So he banked 320K and didn't even blink. To him it was just an obvious play and another trade. I guess that is why he gets to trade from his yacht in the carribean, while I am still commuting to the office.

But I learned to watch for extreme imbalances. Maybe some day.....

RS7 [/B][/QUOTE]

Rs7, what do you mean with imbalances?


Lojze
 
Originally posted by BKuerbs


Sorry rs7, I do not understand: your friend shorted AOL at the market, when the next morning the price was up 8 pts from the 4pm close, then he had a loss of 320k. If he managed to sell at the 12pts plus price he then had a profit of 4x40000 shares the next morning, because the price dropped by 4 pts ?????

Thanks for your patience

Bernd Kuerbs
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Sorry, I used the wrong numbers, but still..you have to understand that the LAST PRINT is what counts, not the 4 pm price:

At 4 pm: AOL $100 per share
stock does not trade until orders on 6mm shares matched...
At 4:10 pm, orders matched : AOL $112 per share
now he is short 40k shares filled @ $112
9:30 am next day: AOL opens @ 108 per share
This opening price is showing stock DOWN $4 per share because of late print.
9:30 am: Trader covers 40k shares @ $108. So consolidated tape shows negative open, but it is still up from 4pm price.

So my number of dollars was wrong..he made $4 per share, not $8 as I mistakenly stated, for a profit of "only" $160,000, (not 320K)

I did think I made it clear however that he was NOT filled at the 4 pm price...that was his purpose to put the trade in 5 seconds before the close of the market knowing he would be part of the 6mm share imbalance that he knew would be done seperately.

If I understood what he was doing at the time he did it, I would have done the same thing (smaller of course). But I did not understand until the next day. So I learned something!

Does this explain? Sorry I made the error and did not explain clearly.
 
Originally posted by OPTIONAL777
Worst Trade?

The girl I was dating before I decided to go back to my ex wife for the last time.
comedy!

777
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Originally posted by lojze
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Rs7, what do you mean with imbalances?


Lojze
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Every day at 3:40 pm, order imbalances show on new tape.
It means that there are more buy or more sell orders on close than can be matched....Do you have a source of news?
 
My broker called me a month or so ago telling me how he had just bought some Sept OEX 640 calls. I decided to pass on this well thought out recommendation, much to my delight. I have learned that sometimes making a decision that keeps you from losing money is almost as good as making money outright.:)
 
Originally posted by LouieR
I have learned that sometimes making a decision that keeps you from losing money is almost as good as making money outright.:)
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Indeed! The best offense is a supreme defense... By sitting on your hands in times where there is no edge present you are in all actuality playing offense...

Publias
 
Originally posted by rs7

Every day at 3:40 pm, order imbalances show on new tape.
It means that there are more buy or more sell orders on close than can be matched....Do you have a source of news?
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Yes, I do, but I am not following them much, except on Briefing.com and Realtimetraders.com

What am I missing?


Lojze
 
worst trade: several months ago i was long 10000 JDSU and was intraday up about 10000 $. I was about to sell when JDSU has been halted 20 minutes before the close. I knew JDSU were about to post results afetr the close that was the reason why i played with it.
1 hour later the results is announced 55 billions $ of losses!! and JDSU felt 3$ in 10 secondes. I finished by selling with a 18000 $ loss and i was 10000 up.
Yhe reason why jdsu was halted was because a hacker get access to the press release .

Best Trade : THe one that i do not have still made :)

One day i have made more than 50000$ in intraday with AMAT.

Today more than 10000$ on INTC was a nice trade
 
Originally posted by LouieR
sometimes making a decision that keeps you from losing money is almost as good as making money outright.:)
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Yup, and the word "decision" is what trading is about (I know I have said this probably too many times and it is getting old). But see what I had to say in "successful trading" about exactly this. It is not about "pushing the buttons" (or in your case letting your broker do it). It is about being patient and making the right DECISIONS!
NOT MAKING A TRADE does not equate to NOT DOING ANYTHING...again repeating myself. This is hard work for us that trade for a living! Knowing when NOT to trade!
Hope this is enough of this basic truism!
 
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