Confessions of a Day Trader: Australians all – let us rejoice!

Picture: Getty Images

Each week, 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 January 16

Everything up this morning and even RIOs touch $123.40 before retreating a little bit. Their final day range was $2.58.

I of course got stuck into FMG, but being a Monday, first trade and all that, I went for half the size of Friday’s trading.

They had opened at $22.73 and I managed to get a quickie in for first trade of the week and make $250.

When they came back again and with $250 under my belt I took the decision to go a bit harder. This proved my downfall for the day.

They actually fell to $22.04 and I of course had emptied both barrels way before they hit that level. I had to wait till the 4.10pm ruck to get back a bit of dignity.

Finish the day down $100, though it was looking like down $1800 at one point, hence cheese sandwich for lunch with sweaty palms. Hopefully tomorrow we can have steak.

Recap
Bought 2,500 FMG @ 22.41
Sold 2,500 FMG @ 22.51 ($250 profit)
Bought 5,000 FMG @ 22.49
Bought 5,000 FMG @ 22.24
Sold 5,000 FMG @ 22.33 (-$175 loss)
Sold 5,000 FMG @ 22.33 (-$175 loss)

Tuesday January 17

FMG start trading below $22.00, after opening at $22.05. Pick some up at $21.93 and leave a limit order in at $21.80, just in case.

Well Just In Case came in and they went below $21.70, so had to pull the trigger again. They were 90c higher at the close yesterday, so surely they should bounce, I thought to myself.

Eventually, they put on a spurt and shot back up towards the $22.00 level and I’m out at $21.95. Ironically, having opened up at $22.05 and reaching a low of $21.63, they closed at $22.03 and on a volume of 8.9m. A 2c difference on nearly 9m shares is just trading madness at its very best.

Later on, CBA had a dip and headed towards the $107.00 level and with a nice profit in the bin, they were just too tempting. Total for day plus $1,110, which more than makes up for yesterday’s effort. Steak tonight for dinner, bbq and a nice red. Yippee!

Recap
Bought 2,000 FMG @ 21.93
Bought 2,000 FMG @ 21.80
Bought 2,000 FMG @ 21.68
Sold 6,000 FMG @ 21.95 ($880 profit)
Bought 1,000 CBA @ 107.16
Sold 1,000 CBA @ 107.39 ($230 profit)

Wednesday January 18

I start my day with WDS and I end my day with WDS. What seemed like a good trade at the time, took all day to come right and avoid taking a loss.

Having seen them open at $37.51 and reach a high of $37.88, I thought getting set in 2000 at $37.31 was a smart move. Er, no.

Over the rest of the day, they fell below $37.00 and kind of hovered around that level before tumbling down to a low of $36.70 and finally rallying at 3.30pm to close at bang on $37.00.

If it wasn’t for a quick trade in CBA, I really would have been spinning my wheels.

Up $540 after being down $1,600 at one point and boy, it was a long day.

Recap
Bought 2,000 WDS @ 37.31
Bought 2,000 WDS @ 36.99
Bought 2,000 WDS @ 36.85
Bought 2,000 CBA @ 107.12
Sold 2,000 CBA @ 107.31 ($380 profit)
Bought 2,000 WDS @ 36.78
Sold 8,000 WDS @ 37.00 ($160 profit)

Thursday January 19

Well.

Australian equities seem to be decoupling from the rest of the world at the moment.

RIOs touched $126.35 after having a low of $122.51. CBA came in with an 11.00am special at $107.45 and then touched a high of $108.83.

FMG reached $22.60 and this market looks so strong. Not sure if it’s a bit of a suckers’ rally.

Up $330 and cautiously looking forward to tomorrow. If it’s up again, I think I’m in trouble.

Recap
Bought 1,000 CBA @ 107.45
Sold 1,000 CBA @ 107.78 ($330 profit)

Friday January 20

Managed to get a couple of trades in at around that 11.00am time frame. Noticed that WDS seems to have had a bit of a run. Did them in half the normal size as convinced that will maybe have to double down below $37.00.

Ummed and ahhed about buying another thousand just before they took off. I had the original thousand on a sell limit of $37.35 but as they went on a rally really quickly, I adjusted it down.

Should have kept it though. CBA looked like they were about to break out above $109.00 and trigger off some stop losses, which they did for a quick 12c turn.

Nothing else to see or do with the Friday weekend coming up, so did nothing else.

Up $220 today and $2,300 gross or $1,870 net as WDS and FMG took a bit of wind out of my sails. Australia Day coming up next week and then after all said and done, back to normal.

Everything has been a bit of a tear and I noticed 10yr bonds rallied 22 basis points yesterday. It’s all happening here folks!!!!