Scalping Journal

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.
 
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.
 
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
 
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.
 
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...
 
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
 
Quote from Midas:

Since scalping is very expensive and you are taking small profits; what commission do you pay per share?
$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.
 
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