PropTrader - Daily exploits

Well the day that I was going to skip turned out to be probably the best day of the week for trading.

I really wanted to take a trade on AIB which I have wanted to do for a while. I have been taking the position short most of the week but there is a buyer who won't let it drop or the specialist is an idiot hahaha. This thing is really poised for big drop but its doing it so slowly. I have been shorting since $0.92 and have never been able to make more then 1-2c on it. Its now reached a low during the day of $0.75. Since I can't hold overnight positions I have always had to exited only to see it open up below the lows of the previous day. Very frustrating. Check AIB out on the daily for the past 3 months and you will understand why I'm bearish. Tried the trade today and actually sized up to 30k position but it still wouldn't go and finished on its highs. +$300 but I'm sure I will make a $1-2k trade on this soon.

I didn't want to trade anything else today but then the mortgage news came over the wires. BAC WFG and JPM all took a chit. I watched as Citi traded down almost 10c to $4.90 and I never once really wanted to take the trade. I saw it never test the 90 level and then went back up through 92. This was the time I should have shorted but still didn't really want to trade it. When it got back down to 90 I was so sure it was going lower it was not funny! I sized up and took a 30k short at $4.90. It came back up through the level but then broke back through it and started hitting the 89s. WFG broke new lows and XLF was coming down. Covered 10k @ 88 to cover fees and reduce risk. I then took out 10k @ 87 and 10k @ 86. That put me +$800 on the symbol for the day (I think I took a tiny position before?).

I was then up $800 after a few little losses on BAC (I really gotta quit this stock as I don't seem to have an edge) and CTIC which broke out but failed to test the highs again.

I was reluctant to go long financials as the price action was not convincing either way. This meant I avoided shorting Citi on the recovery. No more trades taken for the day.

The week/month/year is currently flat for me and I feel fine with that... actually quite happy as its been a tough week. I think I have really avoided and couple of big drawdowns by reducing my size. This is not something I did well in the past... I would not reduce it at all or reduce it too slowly and the damage was already done.

Earnings are next week so we should see a bit more action...

Date: 07/01/2011
Net P&L: +$800
Month Balance: +$30
 
Definitely one of those tougher weeks.

I had hopes that the new year would jump start things, but that just goes to show how useful "hope" is in the markets... ;)
 
Quote from ScottSam:

Definitely one of those tougher weeks.

I had hopes that the new year would jump start things, but that just goes to show how useful "hope" is in the markets... ;)
More...

Yeah I always joke that when you start hoping... you know your f****d... but you just can't bring yourself to admit it yet!

The market will improve right when everyone agrees with some poster who starts a thread titled "day trading is a dead industry?"

btw I'm reading "Reminiscences of a Stock Operator" at the moment... I can't believe I never read this book before. I guess it goes to show you that just because something is old doesn't mean it ain't good. I will share some quotes that I really liked in this journal when it applies to something I have done in trading that day. A special thanks to ET member LEAPup for sending me his collections of good books
 
Well, today was another waste of time. I think its one of the few days for a long time I have traded less then 100,000 shares in a day.

I'm watching this market and I can't stop thinking... there is no point risking anything. This thought just keeps going though my mind and keeps getting confirmed by the market action.

It was times like this I would over trade and just spin my wheels over and over again. However not now! There is no reason to take any risks in this market as the pay offs are just not worth it... there are still isolated movements but I'm talking about the market as a whole.

I even took AA into the earnings halt. I took it on the short side as I really didn't see much upside after the run up we have seen in this stock. The last time I was in a halted stock I lost $20,000, however this time there was no chance of this happening as I only had small size... very small size. The traded was basically out of boredom which is something I shouldn't do. It also wasted 30 mins of my time. System wouldn't let me add to my short so I only had a very small position and covered for an equally small profit hahaha

Once the financials start reporting (JPM this Friday) I think things may start to heat up. Otherwise I'm going to be sitting on my hands like many others traders I assume.

My estimates for fees were too high so I'm actually up $125 for the month... money is money I guess

Date: 10/01/2011
Net P&L: +$25
Month Balance: +$125
 
Quote from DEM BONES:

Prop,
have you considered playing stocks with news that have good volume and movement such as LDK,SHAW,and UTA did today?
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I noticed LDK but it was just sitting in a range. The other 2 stocks really ain't my style. Even though its high volume for that particular stock I prefer not to touch them when they are doing no more then 2m in a day... Not that there is not $$ there I just don't have a lot of experience trading that style.

The other thing I have noticed is that you need a really good news service and scanner. I have tradethenews on speaker and flyonthewall on my screen... both of these show news too late.

To be honest I really missed a trade on S today... when it broke down from the 52-56 levels. This was one I was watching... got distracted on something else and when I noticed it was already trading in the mid 40s.
 
Another boring day for me. Went to take lunch and came back in to see a massive red candle on the SPYs. I was like wow... what's going on? Then I was like... hmmm its actually only 40ticks. This is how much this market has lulled me into sleep that a 40 tick move makes me excited. Sad.

Anyways, Citi was hitting the $4.95 level... it was only 1c down (3c if you count that it was hitting the 97s). Waited... waited ...waited... then bamm... took the short 20k. Immdediately came back up through the level...SIGH! But no, it went back down and then started hitting the 94s and then took out the 93s as the market headed lower. I initially had a cover for 10k @ 92 but as the market got down to settlement I decided to wait and see if the SPYs were going to break even lower.

Nope, market started making up the move as it always does. I ended up punching out on BOSX@ 93 level (u collect credits for removing liquidity on it now).

Couple of other minor moves. Nothing really to note. LVLT looks interesting. Took 1-2c off it today but maybe it will liven up in the next few days.

Green is green and I'm just biding my time till the $$ is in the market

Date: 11/01/2011
Net P&L: +$210
Month Balance: +$335
 
Quote from PropTraderMTL:


The other thing I have noticed is that you need a really good news service and scanner. I have tradethenews on speaker and flyonthewall on my screen... both of these show news too late.
More...

Funny you should mention that. I am actively seeking a faster news/rumors service myself.

Not easy to come by.
 
Well, I don't want to say it but... another FRUSTRATING DAY. That makes it...well let me see... carry the 1... minus 2... divide by pi... yup... that makes it EVERY DAY this month hahahah.

Only 2 real trades today...

Long 25k Citi @ $5.01 and added 10k @ $5.03... out at $5.02. I waited 2hrs for this trade. I was patient... or so I thought. Nope not enough. Just need to sit on my hands the entire day. Could have got the print @ $5.08 for a $2k trade. But no, I got out and net of fees I made $70. No real reason to revisit this trade. I have learned this lesson a bunch of times... make the market prove you are wrong... take a loss.... anything but take a flat. Just need to keep it in mind and have faith that I will make the right decision going forward.

Shorted XLF at the top and on the only real pull back of the day. Shorted 10k @ ?.51 and covered @ ?.47. Took the entire move except for I guess the reversal at that same level. +400

Couple of paper cuts on a few stocks meant I end the day +$300. It sounds weird to say but it actually doubled my month... what a joke!

Anyway, stay calm, stay patient and jump on those trades like a freakin tiger... thats the plan!

Date: 12/01/2011
Net P&L: +$300
Month Balance: +$635
 
15 ticks down on the SPY and they turn the buy programs back on.... buy buy buy... a little downturn.... and then they turn on the buy programs again... This is what seems to happen on the market every day at the moment.

There was a bit of selling on some stocks but on the whole we are still buying the highs.

Citi... the bain of my existence... had 3 easy trades. Short the open... buy the support / resistance of yesterday and short the 4.10-11 area and cover support again. Guess how many I caught. 0. End of story.

I really just can't read this stock at the moment. The tape doesn't make a lot of sense a lot of the time... at least not how it used to trade. Guess its all the hedgies buying. I think I will give it a miss for a while. I never lost $$ on it but I managed to buy the bottom and short the top... and not in the bad way either. Managed to make $0 or close to it on both those trades. This is what tells me not to trade it because when I get it wrong I'm going to lose a lot.

My main trade today was a short on AMD... it tested the 8.32 level in the morning... bounced.... tested and broke it later... bounced hard and squeezed the shorts... came back down but didn't break it and bounced up to 35-36... I felt the bounces were getting smaller and it still really wanted to break this level. So I got short @ 8.35 with 10k. It never went against me i.e. going through 36 or even going through 35 after I put the trade on.

I waited while the HFTers bounced the thing around for a while... price getting worse all the time... after waiting a while it went and broke the $8.30 level... didn't want to do much below it and then bounced back up to 32. I covered 5k @ 30 on the way up and 5k @ 30 on the way down. If I had more patience then I could have held to 26-27 level. +$500

All in all the day was OK but there is really not a lot to be made in this market at the moment. I'm very happy to be positive and its a sign if I can make $ in this sort of market then I will be raking it in when conditions improve.

Green green green and planning to keep it that way!

Date: 13/01/2011
Net P&L: +$430
Month Balance: +$1,065
 
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