Confessions of a Day Trader: Throw the towel in!

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 June 6

I’m bbbbbback!

Will be interesting how I go after three weeks, making coffee and trading again after my break. As I have said, taking time out whether making or losing helps you to refocus.

When I do get a chance to look at my watch list, all 10 are in the red.

How’s that snapshot of CBA? Just had to have a go there. So first trade for 3 weeks is on.

Couldn’t really find anything else from my watchlist, but the biggest major faller was worth having a go.

I got the timing slightly wrong in Magellan (MFG) and had to double down but they came through in the end.

Their trading range was only between $14.68 to $12.82 on 5m volume!

Then CBA came good as well, though I missed my first opportunity as was distracted and still getting my set up right. So a bit rusty. Tomorrow will be better.

Up $640, so happy with that. Tomorrow is RBA interest day at 2.30pm, which will keep me on my toes till then 🙂

Recap
Bought 1,000 CBA @ 104.63
Bought 1,000 MFG @ 13.02
Bought 2,000 MFG @ 12.88
Sold 3,000 MFG @ 13.06 ($400.00 profit)
Sold 1,000 CBA @ 104.87 ($240.00 profit)

Tuesday June 7

Rate day, which means waiting around till 2.30pm before doing anything. I just watch CBA ahead of the RBA’s announcement.

At 2.30pm this is what happens and then their fall is very quick.

Having watched them all day and the last time this happened, it was built into the market.

So, this is strange for me to watch as we all knew what was coming -a rate hike at 2.30pm.

Bit bigger than expected but I think the reaction was to way over sell them.

Below $102 looks good to me so picked up double normal size, as their high was $104.31 and their low was $101.83. I got lucky by catching them at their low. Very rarely happens but occasionally it does.

50c later out they go. I know they will go higher but think I have been rewarded for my patience and will take a grand out of one trade.

Up $1000 today and ready for next month’s RBA announcement.

Recap
Bought 2,000 CBA @ 101.83
Sold 2,000 CBA @ 102.33 ($1,000.00 profit)

Wednesday June 8

Day started out well and then became brutal. The selling down of CBA was relentless and after booking an early profit and buying some WBC, i could have cut 1/2 of my CBA exposure.

Thought about it, but took the view that the short covering would send them higher.

Well I was wrong about that. Don’t know if it is because I am just back settling in and in a difficult time, but I should have followed my gut.

Instead I held on to the bitter end and paid the price. Down $2,955 for the day and don’t want to really talk about it.

Recap
Bought 1,000 CBA @ 99.85
Sold 1,000 CBA @ 100.15 ($300.00 profit)
Bought 1,000 CBA @ 99.44
Bought 1,000 CBA @ 98.65
Bought 1,500 WBC @ 22.22
Sold 1,500 WBC @ 22.34 ($180.00 profit)
Bought 1,000 CBA @ 97.92
Bought 1,500 WBC @ 21.99
Sold 1,500 WBC @ 22.10 ($165.00 profit)
Sold 3,000 CBA @ 97.47 (-$3,600.00 loss)

Thursday June 9

Volumes up even more today and eventually we get a bounce in the bank stocks.

Way over sold in my book, so spread the love around three of them. Left a bit on the table with CBA, though happy to claw back some of my losses.

I’m sure I wasn’t the only one to take a big hit yesterday and still kicking myself for not cutting half of my CBA, when looking at a small loss. Still don’t want to talk about it. Plus $655 for the day.

Recap
Bought 1,000 CBA @ 93.52
Bought 1,500 WBC @ 21.12
Bought 1,000 NAB @ 28.01
Sold 1,000 CBA @ 93.99 ($470.00 profit)
Sold 1,000 NAB @ 28.12 ($110.00 profit)
Sold 1,500 WBC @ 21.17 ($75.00 profit)

Friday June 10

Still licking my wounds a bit from Wednesday and long weekend coming up.

Manage to find an 11.00am special in FMG but not much else. Stay away from CBA, as thinking will have a look at them again, starting on Tuesday.

Up $360 for the day and down $300 gross for the week or $686 net. What a week to come back to from my break. The brutal sell-down in CBA, and in fact all the banks this week, is good in one way – sort of short and sharp rather than a slow death. Maybe by Wednesday CBA may have found a base.

Let’s see.