Confessions of a Day Trader: All at sea? Time to set sail for home… and 2022

Each Monday, Stockhead’s resident day trader gives us a peek at the highs and lows of his trading diary and hints at what might be coming this week.

Platform used: Marketech
Round Trip: A round trip is $10 up to $25,000 and then above $25,000, commission is at 0.02% in and at 0.02% out.
Rules of engagement: Never hold any positions overnight (unless forced) and try to avoid any suspensions (if possible). No shorting.
 

Monday December 20

What starts out as a few nibbles, just to get set and get my eye in, turns out to become the dealings of a madman.

Buying 300 (only) MFG compounds to 25,600 as I chase them down to find a bottom and a short squeeze. The squeeze finally comes around after the very last purchase of 10,000 at $19.70. They fell to $19.53 before bouncing.

So, when a stock falls 30% or more and the news is out and digested, then two more days of this would mean the shares would almost disappear. At some point a shorter must cover and create a short squeeze. Like waiting for the right wave, you have to be in the ocean to ride it.

I was well and truly in the ocean with MFG, compared to CIM, which behaved itself in the paddling pool. Cut the Z1P after closing out MFG.

A big day that started out small, leaves me drained but up $1,712 gross.

Recap:
Bought 300 MFG @ 21.28
Bought 500 CIM @ 15.59
Bought 2,000 Z1P @ 4.17
Bought 300 MFG @ 20.88
Bought 1,000 MFG @ 20.67
Bought 2,000 MFG @ 20.58
Bought 6,000 MFG @ 20.15
Bought 6,000 MFG @ 19.90
Sold 500 CIM @ 16.17 ($290.00 profit)
Bought 10,000 MFG @ 19.70
Sold 25,600 MFG @ 20.05 ($1,502.00 profit)
Sold 2,000 Z1P @ 4.14 (-$70.00 loss)

Tuesday December 21

A very slow day today, with most of my watchlist up. Managed one trade in 2500 FMG, after they had a bit of a sell-down. Left a bit on the table, but don’t really care as a profit is a profit. Plus $175 and relaxed.

Bought 2,500 FMG @ 19.56
Sold 2,500 FMG @ 19.63 ($175 profit)

Wednesday December 22

Got a bit more aggressive today as a few fallers looked overdone and I thought not worth tiptoeing around – just go for it.

RIOs were marked up overnight and touched $101.70 as a high. Bought 2000 at $98.91 and sold them 20c higher.

CHC got marked down over an acquisition and had a range of $21.62 and $19.70. Took me three goes to find their bottom, but got there in the end.

First purchase was at $20.15 and last was at $19.86. Both gave me a bit of pain before the gain!

Ended the day up $930 but don’t think will be so aggressive tomorrow or Friday, as I can see maybe a few tears because of lower volumes and interest.

Recap:
Bought 2,000 RIO @ 98.81
Sold 2,000 RIO @ 99.01 ($400 profit)
Bought 2,000 CHC @ 20.15
Bought 2,000 CHC @ 20.03
Bought 4,000 CHC @ 19.86
Sold 8,000 CHC @ 20.04 ($530 profit)

Thursday December 23

Everything is getting slower and the daily swings are getting smaller.

Could only find one trade today in FMG, who were trying to nudge $20.00 yesterday so picked up 2500 at $19.20 and watched them fall below $19.00 and then slowly climb back up to become a profitable trade.

Got the feeling that you could make money today, whether going long or short.

Plus $300 and tomorrow the markets shut at 2.00pm.

Recap:
Bought 2,500 FMG @ 19.20
Sold 2,500 FMG @ 19.32 ($300.00 profit)

Friday December 24

Looked, searched and gave up today.

Volumes low and movements were not too large. The biggest faller out of the top 200 was RWC, who at $6.15 were down 2.38% on 500,000 shares.

CBA for example opened at $100.58 and closed at $100.63 on 888,000 shares and APT opened at $86.55 and last trade was $86.65. Their range was $1.04 but only on 321,000 shares mind you.

So happy to pull up stumps and head for the beach.

Plus $3117 gross and $2711 net. Another short week next week, though we may have a bit of year-end touching up.

Let’s see.