Confessions of a Day Trader: Raise a glass to the trading god, banker hits maiden tonne
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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.
Bit of noise coming about China and iron ore price, so am watching BHP and FMG. Have a limit buy in on BHP which I just miss out on but FMG comes good. Buy 2000 at 21.71 and sell them at 2.78 and later in the day get 2000 at 21.39. Watch them bottom out at 21.20 before a nice rally gets me out of jail at 21.45.
Get an early trade on in Z1P and a couple of A$40 trades before their range slows towards the end of the day. All up A$440 for the day.
+2000 Z1P at 7.12; -2000 at 7.17; +2000 at 7.09; -2000 at 7.11; +2000 at 7.08; -2000 at 7.10; Profit A$180
+2000 FMG at 21.71; -2000 at 21.78; +2000 at 21.39; -2000 at 21.45; Profit A$260
Make a note, that today could be the day that CBA crack the 100.00 level on my trading note pad. Buy 1000 at 99.02 and sell them at 99.17 just as they take off and start heading to that magical figure. They reach 99.65 and move around that level before falling below 99.00! What a range.
Can’t believe that am able to buy 1000 at 98.91 and sell them at 99.06. Total profit on CBA today is A$300.
APT shoot upwards and downwards on smaller than usual volume. Buy 250 at 92.05 and another 250 at 91.93 before a mini rally and out they go at 92.59 for a A$300 profit.
Locked in a 3c turn in Z1P for A$60 profit. Plus A$660 for the day.
+1000 CBA at 99.02; -1000 at 99.17; +1000 at 98.91; -1000 at 99.06; Profit A$300 (could tomorrow be the day?)
+2000 Z1P at 7.10; -2000 at 7.13; Profit A$60
+250 APT at 92.05; +250 at 91.93; -500 at 92.59; Profit A$300 (moving around on small volume today)
CBA finally do it and crack the A$100 level! But can’t find a trade in them today.
Buy 2000 BHP at 46.65 at bang on 10.45am and sell them at 46.73 just before 11.00am for A$160 profit.
Buy and sell 2000 FMG for a 3c turn and 2000 Z1P for a 2c turn. Total profit A$260 for the day.
+2000 BHP at 46.65; -2000 at 46.73; Profit A$160 (pre 11.00am special)
+2000 FMG at 21.38; -2000 at 21.41; Profit A$60
+2000 Z1P at 7.13; -2000 at 7.15; Profit A$40
At 11.03am CBA crack the 100.00 level again, having been as high as 99.99 before then. Tickle in a small amount pre 11.00am just to see at 99.58 and out at 99.72 on a quick rally.
Back in for 1000 at 99.62 on a dip and out at 99.70. In last 15 min, they are below 99.00 and buy 1000 at 98.92 and leave them on a limit of 99.11 for the close, which they touch and then fall back below 99.00.
In between all of this IMU come on the radar as a big faller. About once a month these type of trades come along. I don’t like doing them in case they get suspended and ties up my capital, so happy to be in and out very quickly to bank A$500 on them.
Punted 2000 BHP for a 4c turn. All up plus A$920 for the day.
+100,000 IMU at 39.25c; -100,000 at 39.5c; +50,000 at 36.5c; -50,000 at 37.0c; Profit A$500 (once a month or so these type of opportunities come along)
+2000 BHP at 46.69; -2000 BHP at 46.73; Profit A$80
+500 CBA at 99.58; -500 at 99.72; 1000 at 99.62; -1000 at 99.70; +1000 at 98.92; -1000 at 99.11; Profit A$340 (Got some with a 98 in front of the trade. Didn’t think that would happen today!)
Take the day off and take some money out of the trading account and go away to spend it. I can’t express how important it is to take some time out, take some of your gains and turn them into something in the real world and raise a glass of Penfolds to the trading god.
Taking time out allows you to re-calibrate your trading rules and go over them in your head. So, here’s to Monday morning!
Gross profit: A$2,570
Less brokerage: A$302
Net profit: A$2,268
Most satisfying: IMU
Least satisfying: Z1P (Wed)