Confessions of a Day Trader: Was it all a dead
cat rabbit bounce?
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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: 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.
Got caught today in a downdraft of falling iron stocks with differentiating results.
Rio had a range of $120.26 to $116.79 and I managed to get two good results from them but in FMG I got a bit cocky with my starting size.
Decided to go for 2000, instead of 1000 and paid the price and managed to snooker myself because of it. If I had stuck to 1000, I could have averaged down three times instead of once only.
So made $700 in RIOs and lost $1,220 in FMG leaving me down $520 before brokerage. I was expecting this to happen to me last week! Let’s see what Tuesday brings.
Bought 2,000 FMG @ 21.60
Bought 2,000 FMG @ 21.43
Bought 1,000 RIO @ 117.81
Sold 1,000 RIO @ 118.20 ($390 profit)
Bought 1,000 RIO @ 117.45
Sold 1,000 RIO @ 117.76 ($310 profit)
Sold 4,000 FMG @ 21.21 (-$1,220 loss)
Today was getting hard to find anything as day ranges are getting tight and some volumes are Easter Holiday low.
CBA missed their 11am run and it came a little bit later. Managed to pick up 1000 at $106.18 on their way up and get a quick profit. Of course they went even higher.
Someone asked me once how do you know a share price is about to go up? Easy I said, I just sell it and that is a signal for them to rise!
Just remember though, you do want to sell as they are going up, otherwise you can get caught with only selling a portion.
FMG seem to like the $21.19/20 level, so managed to get a small turn. Clawing back yesterday’s losses.
Up $250, so $270 left to go.
Bought 1,000 CBA @ 106.18
Bought 1,000 FMG @ 21.14
Sold 1,000 CBA @ 106.37 ($190 profit)
Sold 1,000 FMG @ 21.20 ($60 profit)
With Easter getting closer, volumes are drying up.
Made a very small turn with FMG around that 21.20 level and RIOs a bit stronger.
Then CBA started nudging towards their day’s low, so picked up 1000 and walked away for a bit.
You can see why I did this from the screen shot. Sold them higher. See chart.
Up $410 so back in the black. Tomorrow will be slow!
Bought 1,000 FMG @ 21.21
Sold 1,000 FMG @ 21.26 ($50.00 profit)
Bought 1,000 CBA @ 106.20
Sold 1,000 CBA @ 106.56 ($360.00 profit)
Volumes low today.
BOQ pops up as a big large cap faller today and hovers around the $8.00. Paid $1c above that as over 400,000 were on the bid there.
They actually got sold through it and then they bounced. I missed the top of the bounce – see chart – but for a one trade day very happy.
Up $350 for the day and after Monday’s loss, scrape through on a shortened week plus $490 gross or $235 net, which equates to over 200 Cadbury Creme eggs to hide around my garden!
Another short week next week and itching to see if I can beat this week’s effort.
Bought 10,000 BOQ @ 8.01
Sold 10,000 BOQ @ 8.045 ($350 profit)