Confessions of a Day Trader: The one where the Big 4 stock looks more like a commodity

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 August 22

A slower start to the week, as kind of expected. One thing I have noticed, though not sure if it means anything, is that the gap between the share price of CBA and RIO has narrowed to around less than $1.00.

CBA going XD and falling has brought it down to being priced towards a commodity stock, rather than a bank.

Anyway, Magellan go XD and it is not really a big volume stock, they seem oversold. Hovering around the $13.00 level, so have a nibble, just in case they bounce.

Which of course they don’t do, so I have to double down and get my average in cost down. Stick them on a limit, which they touch, go through and then collapse again.

So, am able to go again later in the day. No messing around, so all in for 6,000 for a 3c turn which should cover off all of my brokerage for the day.

In between all of this, CBA also come in twice. Once below $99.50 and then again at below $99.00. Second time around was towards the end of the day, so happy for a grab and run.

Up $970 but feeling a bit cocky mentally, so expecting a bump back to earth with some losses tomorrow!

Recap
Bought 3,000 MFG @ 13.07
Bought 1,000 CBA @ 99.38
Bought 3,000 MFG @ 12.92
Sold 1,000 CBA @ 99.65 ($270 profit)
Sold 6,000 MFG @ 13.06 ($390 profit)
Bought 6,000 MFG @ 12.80
Sold 6,000 MFG @ 12.83 ($180 profit)
Bought 1,000 CBA @ 98.87
Sold 1,000 CBA @ 99.00 ($130 profit)
 

Tuesday August 23

Today turns out to be a one step forward, one step back kind of day.

I do make a profit and a loss in RIOs today but also have a win elsewhere.

Finish up $165 after taking a late trading loss in RIOs in the 4.10pm ruckus.

Also today, RIO’s and CBA’s share price values kissed each other at 12.15pm and then crossed over.

CBA finished at $97.02 and RIO at $97.66, so that kinda tells you where sentiment is at.

Recap
Bought 1,000 RIO @ 97.86
Bought 3,000 SSM @ 0.835
Sold 1,000 RIO @ 98.20 ($340 profit)
Sold 3,000 SSM @ 0.850 ($45 profit)
Bought 1,000 RIO @ 97.88
Sold 1,000 RIO @ 97.66 ($220 loss)

Wednesday August 24

RIO and BHP were marked up in the US overnight, so it kind of gave me a lead, though you wouldn’t know it from the performance of RIO.

Anyway, kicked off the day in BHP and ended the day getting out of RIO for a loss.

In fact, end the day up $180 and CBA finished at $97.20 and RIO finished at $97.10, having been as high as $98.98. They had a day range of $2.40 and managed to bounce off their day’s low in the last 30 mins, so will try and make back my loss tomorrow.

Recap
Bought 2,000 BHP @ 41.86
Sold 2,000 BHP @ 41.92 ($120 profit)
Bought 2,000 RIO @ 97.20
Bought 2,000 CBA @ 97.52
Sold 2,000 CBA @ 97.65 ($260 profit)
Sold 2,000 RIO @ 97.10 ($200 loss)
 

Thursday August 25

Everything was up today on the old watch list today, though I managed two trades in ANZ.

They had a small trading range of under 20c but hit the same low three times and bounced and then became very boring for the rest of the day.

Up $500 and never got a look in at my RIOs. Had a lower limit buy in them below $97.00 but they never came close enough. I think I missed them by 5c or so. Will try again tomorrow as thinking Friday will have a weaker finish.

Recap
Bought 5,000 ANZ @ 22.80
Sold 5,000 ANZ @ 22.85 ($250 profit)
Bought 5,000 ANZ @ 22.77
Sold 5,000 ANZ @ 22.82 ($250 profit)
 

TGIF August 26

Can’t do anything in RIOs again today, though managed a couple of quick in and outs in CBA and ANZ.

Also went and had a go at CCX, who have fallen about 25% over the last two days. Didn’t make a big profit but enough to more than cover off today’s brokerage.

ANZ really was a quick one and CBA was a classic, wanting to break above $98.00. I was out as they hit that level and watched them keep going but as yesterday I was expecting today to be a down down, was happy with $195 profit.

Today up $645, $2460 gross for the week and $1906 net. Feels like Monday may actually be a down day looking at how this week went. We shall see!

Recap
Bought 1,000 CBA @ 97.81
Sold 1,000 CBA @ 98.005 ($195 profit)
Bought 10,000 CCX @ 1.780
Bought 5,000 ANZ @ 22.91
Sold 5,000 ANZ @ 22.97 ($300 profit)
Bought 10,000 CCX @ 1.755
Sold 20,000 CCX @ 1.775 ($150 profit)