Life's a beach, until you buy Zip. Picture: Getty Images
Confessions of a Day Trader: I do love to BHP beside the seaside
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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: $10 (previously $40 on alternative platform)
Rules of engagement: Never hold any positions overnight (unless forced) and try to avoid any suspensions (if possible). No shorting.
Monday April 19
Decided over the weekend to start trading from a van by the beach. Found one on the weekend on Gumtree and of course the only time to view it is during trading hours. So miss the opening and finally get back after lunch.
Not much happening my way, though Z1P are trending down. Dip the toes in and buy 1000 at 9.03 as the day’s low is 9.00 exactly. Put in limit trigger buy for 2000 at 8.90, if they do break through the 9.00 level.
They don’t touch either buy or sell limits, so have to cut them at 8.94 at the close of play. So lost A$90 for the day.
+1000 Z1P at 9.03; -1000 Z1P at 8.94; Loss A$90 (got me pecker caught again!)
Tuesday April 20
I notice today that the swing movements are very slow (see graphs) which makes today hard for me. I manage to make A$100 on BHP and lose A$100 on CBA and that’s after watching both of them slowly fall to my trigger points.
BHP took about 90 mins to create A$100 for me and then CBA about the same time to crystallise a A$100 loss. So, a doughnut day for me today.
Beach trading room not yet ready, though tomorrow ready to go.
+1000 BHP at 47.25; -1000 BHP at 47.35; Profit A$100 (boring)
+1000 CBA at 87.86; -1000 CBA at 87.76; Loss A$100 (boohoo)
Wednesday April 21
Beach trading room set up. Celebrate with a coffee and of course a doughnut. Hoping that will be the only doughnut today. Let’s see!
Lots of fresh air and everything I touch instantly falls the moment I hit the buy button… and rego for van cost A$338. However, whilst waiting in the RTA, things are moving my way and my ledger shows me that I have almost made this so far.
CBA was kind to me today twice today and BHP needed a double down before adding to the rego payment. See charts.
Also had a go at NXL, CFG and ORG but all boring compared to CBA, the A$156bn stock that swings +/- A$1.7bn in a day. End the day up A$490, rego covered, watching the sunset with beer in hand. Life’s good.
+1000 NXL at 4.25; -1000 NXL at 4.28; Profit A$30 (A$308 rego left to go)
+1000 CGF at 5.19; -1000 CGF at 5.23; Profit A$40 (A$268 to go)
+1000 ORG at 4.05; -1000 ORG at 4.05; Doughnut (pfftt)
+1000 BHP at 46.43; +1000 BHP at 46.25; -2000 at 46.41; Profit A$140 (A$128 to go)
+1000 CBA at 87.26; +1000 CBA at 87.36; -1000 CBA at 87.41; -1000 CBA at 87.49; Profit A$280 (Kaching. Now A$152 over rego!)
Thursday April 22
Get distracted by BHP at 11.00am, having bought 1000 at 47.125 at 10.53am. This meant that I missed out on the same movement by CBA. Out at 47.25 at 12.49pm. then back in for 1000 at 2.34pm. Price 47.29.
Sold them at 47.33, with 45 mins to go before the close, as I didn’t want to wait around and waste time. All up plus A$A$165 for the day.
Bit peeved that I missed CBA, so will have to adjust my new trading view a bit, so more productive. Can’t see the 11.00am movements happening tomorrow, but let’s see.
+1000 BHP at 47.125; +1000 BHP at 47.29; -1000 BHP at 47.25; -1000 BHP at 47.33; Profit A$164
Friday April 23
Sun’s out but that’s about it for me on this Friday. Can’t find anything to have a go at except APT.
Buy 200 at 122.95, having seen them bounce off 124.00 12 times. Sell them at 123.17 as volume sooooo slow. Book in A$44 gross for the day. Covers lunch and coffees for the day.
See chart on Kogan, as this could be interesting on Monday. Have also added RedBubble to my watch list.
+200 APT at 122.95; -200 APT at 123.17; Profit A$44 (covers off on lunch and coffees)
Gross profit for week: A$608
Brokerage: A$170
Net profit for week: A$438
Most satisfying: CBA (Wed)
Least satisfying: Z1P (who else?)
