Confessions of a Day Trader – Week 1: No beer snobs, please
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Each Monday, Stockhead’s resident day trader gives us a peak 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.
Full of frustration as away on a must-attend family function with no reception and even hiking to the top of the tallest hill gives no joy. With a 10-hour drive back tomorrow, it will also be reception patchy, so keen to leave early!
Leave early and I volunteer to do the first bit of driving, so I can swap over at 9.30am and get my phone, head and thumbs into trading mode.
I see that BRN are down 7c to 39c and as they were still the most talked about stock on the forums, I buy a small 10,000 at 39c. Out 10 mins later at 39.5c for a quick $50 profit and start looking around for another trade.
Eventually buy 1000 FMG at $16.87 whilst we are waiting in a lunchtime Macca’s drive-through. As they closed around $17.00 previous day I figure they may get pushed back up there for the close. They do push up and I’m out at $16.93, having been down $100 at one point. My timing was out a bit, though I manage to book a $60 profit.
Had a small 10,000 punt on EM1 at 7.8c, as they had been up to 9c on Friday. Though volume is good, it’s starting to fall and so is the stock’s volatility. Out at 7.9c as getting bored and it pays a $10 profit, which covers off my cheeseburger combo.
Back home! Screen and full internet! But have to complete an internet advert picture for a client, so checking markets in between downloads and tweaks. Watching BRN, DOU, EM1, FMG and PLL for any pull back opportunities.
DOU is trading around 25c, having hit an intraday high of 49c a couple of days ago and was down to around 22c yesterday. Every time I check them they are a touch higher, so just watching for a pull back, which doesn’t happen as they close the day up a massive 54% to 34c.
All the others I’m watching are all a touch higher, except FMG, which is ticking a bit lower. Out of boredom and lack of watching patience I buy 1,000 at $16.92 at bang on 11.23am. Bugger me, they do it again and 30 mins later they are down to $16.82 and hit a low of $16.81. Whilst making lunch I’m down A$110, so it’s just going to be a cheese sandwich.
I have to wait till 3.55pm until a profit reappears and I sell out at $16.96 to make $40. Could have had a juicy steak sandwich, instead of cheese.
That was a wait of 3.5 hours, with a lot of screen refreshing going on from 3.30pm onwards. Maybe 100 times or so, partly to feel for the trend and partly out of frustration on my timing issue again.
European stocks are down a bit, with the FTSE falling almost 2%, though Wall Street hardly moved.
FMG opened weaker than I thought, having been $16.92 on the close yesterday, so I put on what I think is a cheeky bid at $16.66 (“the devil’s bid”) and I get hit early on, which turns out to be the low of the day.
Now, getting the low of the day is more of a fluke than me fine-tuning my timing, but still pretty chuffed. Don’t get out at the high though and sell out at $16.79 within 30 mins. Back in at lunchtime for another 1000 at $16.70 and out before the close at $16.73, for total FMG profit of $160 for the day.
However, I did fancy having a go at DOU, who opened up at 36.5c and quickly hit a high of 39c. Saw them come down and keep bouncing off 31.5c so buy 10,000 at 32c just after midday and watch them go up to 33c, down to 32c and then back past 33c. Put in a sell at 34c, which gets taken out as goes to 34.5c.
An amazing volatility stock, which hasn’t had a speeding ticket yet, which makes me a bit nervous that they may hit a trading halt. They close at 30c on a volume of 65m.
So that’s O/36.5c H/39c L/30 on a total of 65m and close back at their low for the day. Amazing stuff. With a Friday coming up, I reckon they could hit 25c tomorrow.
Miss out on EM1, who close at 10.25c on 129m T/O. Can’t believe that they were in my hands at 7.8c on Tuesday.
Off to the beach wondering what tomorrow will bring and happy for today’s $200 plus in the bin.
Well, nothing really happened overnight and being a Friday – unless you can spot something early – the longer it takes to find a punt, the less time to you have left in the trading day.
Taking this on board, at 2.05pm, I pull the pin. Had an order in to buy 1000 FMG at $16.62, having watched them bounce three times off of $16.60.
Order placed at 11.23am and pulled it at 2.05pm. They got down to $16.64 and then promptly went to $16.68 and broke through $16.70 and just kept going to %16.78. Volume 20% of yesterday’s.
Everything else on the watch list just as boring, though DOU did get down to 28.5c and I was waiting around for them to hit 25c but they never did.
EM1 touched lucky for some 13c and almost a doubling from three days ago.
Anyway, not too bad a week as I managed to use some of my profits to get a case of Toohey’s New for $45 by redeeming the docket at the end of my paper receipt. With $2.40 coming back from recycling the bottles, they come down to $1.78 a 375ml (not a 330ml beer snob) so compensates for a day watching the paint dry.
7 Round Trips: $70
Gross profit: $520
Worst trade: No losers this week, though no trades on Monday or Friday
Best trade: 10,000 DOU in at 32c out at 34c