Trading conditions

A nice momentum dump occurred when the Dow pierced through the 10,000 level. I scalped the dump, but ended up being cut up when the market snapped back. I was left with but a minor profit. This profit was diminished to an even smaller net profit for the day by a subsequent scalp.

I only traded twice today, and had a net gain of 4 cents (10,000 shs). I stayed firmly in cash for the vast majority of the day ... this, for me, proved to be the most profitable thing to do. Remember, cash is a position.

A not very profitable day, but at least I didn't lose anything.

Although I have been trading for some years now, this year's Summer conditions has been particularly brutal. It has forced me to focus more, and reinstitute a policy of extreme discipline. Summer has so far been net profitable for me, but it has been tough. Some days have been great ($10k plus) but many more have been small gains or small losses (+/- $few hundred).

We need a volume injection to create sustainable intraday trends. Perhaps the return of institutional money after Labor Day can be the catalyst ... time will tell.
 
I didn't trade much either today. I made 9k on a hc scalp, but blew 8k on other dumb stuff. After commish, I took $150. I guess that will cover tonight's bar tab.
This market has been brutal (especially if you don't short much like me). The dow has dropped 500 pts in 4 trading days. As far as I'm concerned, it's too oversold short term to get short. I also recognize true fear out there, and I'm very timid to the long side, so I'm basically sitting it out, and I'm very slowly picking at some cheapie calls on the most oversold merchandise. If we bounce, I'll clean up, if not, those calls are about the price of my stop loss had I played them with common. It seems like a good tradeoff.
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Look at the qqq's and some entertainment stocks as good oversold candidates. I have some aol calls. Via.b, yhoo and dis aren't bad looking either. Tomorrow is international markup day, and these mutual funds are really hurting, so it would make sense for them to try and gun it.
 
Candletrader Where is this "intraday volume injection" going to come from with 80% of retail accounts crippled with the shingle of "Pattern Day Trader" hung around their necks? If anything you have probably witnessed the the end of any intraday patterns other then slimjims.:mad:
 
Candletrader - thanks for your many informative posts. I probably missed it somewhere but why do the new SEC margin rules affect direct access brokers that fall under NASDAQ guidelines differently than those that fall under NYSE guidelines ? This seems inherently unfair IMO to companies such as IB and their customers. IB should be able to offer cash accounts with real-time buying power if other brokerages are allowed to do the same. :)

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Well, in my discussions with a representative from one brokerage, I have concluded that those direct access brokerages that come under Nasdaq guidelines - Cybertrader and Datek come to mind - will (for regulatory reasons that I have not as yet been able to identify) be allowed to offer their less well capitalised customers cash accounts with real-time buying power. This will enable the (generally younger, less well-funded) customer to daytrade to his heart's content from the longside, as long as he remains within his means. For example, a guy with a $20k account would (at current prices) be able to trade CIEN in lots of 1000 all day long.

On the other hand, brokers that come under NYSE guidelines (for example IB) seem to have a regulatory difficulty with offering cash accounts with real-time buying power.

These are my findings so far... I may be totally wrong about them (and I apologise if this proves to be the case). But there still remains some hope for the younger and/or less well-capitalised trader to participate in this game.
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Hello All,

I'm new to the site and have really been enjoying reading through the threads but was wondering if someone knew how to get this 'trading conditions' thread over to the "Trading" forum. It's a more intuitive place to find it, imho.

On a separate note, I find that some of the best posts involve those with actual trades members have made, either good or bad. We can all learn from each other's successes and failures (hopefully less of the latter). The popularity of this thread and Hitman's "*** Trading Journals" are testimony.


Regards.
 
Originally posted by wirelessbull
Candletrader - thanks for your many informative posts. I probably missed it somewhere but why do the new SEC margin rules affect direct access brokers that fall under NASDAQ guidelines differently than those that fall under NYSE guidelines ? This seems inherently unfair IMO to companies such as IB and their customers. IB should be able to offer cash accounts with real-time buying power if other brokerages are allowed to do the same. :)
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I spoke with a very credible sounding rep at Datek, who explained to me the quirk vis-a-vis NASD brokers vs NYSE brokers. As mentioned, I have nothing in writing to this effect, but such a quirk may explain IBs stance on cash accounts versus the stance of Datek on cash accounts. I suggest that the only way to know for sure is to wait for September 28th to kick in (at which date Nasdaq firms must comply), and then simply phone around asking for various brokers' stance on long-side daytrading in cash accounts.
 
Originally posted by sallyboy
... was wondering if someone knew how to get this 'trading conditions' thread over to the "Trading" forum. It's a more intuitive place to find it, imho.
Regards.
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Agreed. I am not sure how/why I have ended up in Professional Traders, and would prefer to be in the Trading forum.
 
I will periodically add people to my recommended ignore list on the first post of this thread. To choose to ignore someone, simply go into your personal account and add them to your ignore list.
 
Originally posted by candletrader


Geez Praetorian,

You are a heavy drinker :D
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you have no idea at all........ I woke up from my stupor at 11:15 or so today, I totally missed that 1 pt aol move I was looking for. I should have flipped my calls for 3k, instead I made chump change..... by the way, did anyone see me out last night? Last thing I remember is buying some beers at Phillips........After 4am, I can't piece together the rest of last night.........
 
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