Confessions of a day trader: no bounce at 11 a.m. for minors? Zip it up!
Every Monday, the resident Stockhead day trader gives us an overview of the ups and downs in his trading journal and hints at what could happen this week.
Platform used: Markettech
Round trip: $ 10 (previously $ 40 on an alternate platform)
Rules of engagement: Never occupy any position overnight (unless you are forced to) and try to avoid suspension (if possible). No short circuit.
Monday, September 20
Today turned out to be an ALDI Today – Good Different Day.
I watched iron ore stocks rise after they opened on a short cover and then retail came in.
Didn’t budge until 11:48 a.m. and started by buying 1000 FMG at $ 14.25. Then 1000 RIO at $ 94.50, 1000 BHP at $ 37.38 and finally 1000 MIN at $ 45.26.
To even my tilt on iron ore games, decide to buy 2000 Z1P at $ 6.60, then 1000 CBA at $ 101.09.
So mix it up a bit.
It doesn’t work quite the way I thought it would because it’s these last two that hurt me the most. I have to buy another 2000 Z1P for $ 6.45 and another 1000 CBA for $ 100.81.
The oversold iron ore games start to roll out of their red zones in the afternoon and the RIOs were the first to go. Sell 1000 for $ 95.06 (+ $ 560), then the FMG for $ 14.63 (+ $ 375). The ABC also recovers and leaves at $ 101.10 (+ $ 300).
The other two Iron stocks start to come in and out of profits and seeing that I was down over $ 2000 on each of them at one point, just happy to come out with gains. Sell the 1000 BHP for $ 37.43 (+ $ 50) and the MIN for $ 45.33 (+ $ 65).
Decide to add another 4000 Z1P at $ 6.42 and watch them hit $ 6.32 before they recover. Cut them all down to $ 6.42 and reserve a loss of $ 420. So it was different. Thought I was playing it safe in Z1P but got skipped. Zip zap = ouch.
So up to $ 930 a day and was at one point well below the water before hitting bottom and coming back up to breathe.
Tuesday September 21
A fall on Wall Street and the price of iron ore down 8% to US $ 92. RIO and BHP are down around 3% and Square shares are down 2.3%, so even APT will have a slap today.
I really can’t think of what the market will do today if it doesn’t sell like yesterday. Even CBA grabbed a bit of a draft yesterday. So could they go below $ 99 and could RIOs go below $ 91?
We will see.
Well the RIO goes up and the CBA doesn’t go below $ 99 so that’s not what I expected.
Wait and the first purchase is of all things, Z1P. Buy 2000 for $ 6.16 and sell them for $ 6.21 for over $ 100. It is 11:44 a.m. for the purchase and 12:01 a.m. for the sale.
Then buy 1000 CBAs for $ 99.89 (12:10) and sell them for $ 100.05 (+ $ 160). Time 12:48.
So it is now almost three hours after the start of the trading day before I jump on the iron horse.
+1000 BHP at $ 37.98, 1000 FMG at $ 14.91 and 3000 RIO at $ 95.88. It is 13:27
Sell the RIOs for $ 96.11 (+ $ 690) and just trade a bit large position due to their volatility. They are moving like the ABC was yesterday.
It is 2:27 p.m. Dip my toes in 500 MIN only at $ 45.55 cause they can be a wild child. Then buy 1000 CBAs at $ 100.22 as they seem to go higher.
I have to add to the wild MIN and therefore add 1000 to $ 45.22 and sell the 1500 to $ 45.45 10 minutes later. + $ 180.
Double down on another 1,000 BHP to $ 37.75 and 1,000 FMG to $ 14.68. Then buy 3000 RIOs for $ 95.72 and sell them for $ 95.88 (+ $ 405).
Basically reduce the FMG to $ 14.68 and the BHP to $ 37.84, for a small combined loss of $ 35 having been around $ 470 at one point.
Back in another 1000 CBA at $ 99.91 (no goddamn bounce!) And 3000 RIO at $ 95.83. Sell the 2000 CBA for $ 100.19 (well + $ 250) then buy 2000 FMG for $ 14.73 like you never know. Buy 2000 RIO for $ 95.64 and see the table for the end result. Reduce the FMG by $ 100.
All in all, plus $ 1,430 gross and it’s been a long day and not like I expected. Almost everything lost in the last trade of RIO. Talk about being oversold.
Wednesday 22 September
Today is the day some of my favorite stocks take off at full blast, or just after 11am. After two days of decline, those who cannot make a margin were stopped within the first hour of trading. Once out of the way, bang, they’re gone.
I left a bit early to get ready before 11am and was a little on the wrong foot before they took off and similarly towards the end of the day when I was making a little profit I would go from miners to industrial.
In total, I handled 23 trades for gross profit of $ 2,025 and these volatile days are the ones I love. Not those boring, steady Eddie days.
The graphics tell the best stories of today. Left before the 11am rally in CBA, CHN, MIN and FMG and out of them all shortly after, in their rallies.
These 11-hour gatherings were so strong among the miners that it was difficult to find trades afterwards.
For example, buy 1000 MIN at $ 44.75 then 1000 at $ 44.45 before reselling them for $ 44.79 to make $ 290.
My next trades on them were to buy 1000 at $ 46.22 and sell them at $ 46.62 for a profit of $ 350.
So MIN had a one-day trading range of, wait, $ 44.10 to $ 47.59, with their last trade at $ 46.64.
Even CBA had a range of 97c, but only finished 9c below its opening price.
Like I said, take a look at the charts to get a feel for the day. Tomorrow will be interesting to say the least, but not that volatile.
Thursday 23 September
I only have eyes for FMG. Everything else was going the wrong way for me or like CBA, where every time I looked at them they would rally before I could be ready.
Bt and sold 1000 FMG for a 10c round from the start. Entry at $ 15.76 and exit at $ 15.86. Then come back to $ 15.72 per 1000, then another 1000 to $ 15.77. You’re not sure about this (no real rally) so sell 2000 at $ 15.78 for a small profit of $ 70.
It looks like FMG is starting to drift and decides to go 10,000 long but just doesn’t know when. So keep snacking.
To buy [email protected], then 2000 to 15.59, 2000 to 15.48 $ then 2000 to 15.42 $. Just missed the balance on a limit of $ 15.36, then they slowly start to climb and eventually they all go to $ 15.60 for a profit of $ 500.
All of this, plus $ 670 for the day.
Friday September 24
Another day of slow trading today. Added a graph on RIO as it shows their rally times, but not for me today. BHP and APT are both breaking their highs, so buy 2000 BHP at $ 37.59 and 1000 APT at $ 131.02.
APT rallies very quickly 10 minutes into the start of the trade and can’t believe it as they manage to sell the 1000 at $ 131.65 (+630) but also manage to leave another $ 890 on the table, but that’s life.
Finally see a profit in BHP at $ 37.67 (+ $ 160) and that was my day. It will be interesting to see what happens to the iron ore in Friday night trading.
End the week up $ 5,845 gross or $ 4,523 net, a bit subdued for the last two trading days, although Wednesday was a cracker. Still in confinement but I hope no longer.