Diary of a daytrader.The completed article with the trading.

Naz

Experienced member
1,391 24
I wrote this article in sections because it was a true day.If you've already read the first part skip it and go further down to the trading part.


My day realy starts when i leave my desk at home and catch the tube into work in the city about 12 noon.Up to that time i'm a free agent i normaly phone a couple of Naz traders and swap views,find out stocks their looking at and check them out on my pc.I normaly switch on CNBC once just to get a feel for the rest of the world and see what the US futures are doing.

Today I'm realy fired up because we've got a Fed rate cut tommorow the Nas has got strong resistance at 1500, at any time we can get a US strike happening Against Afghanistan.The the US indices made a good run up on Fri and they're consolidating at their highs.Daytraders always seem to be anticipating what may happen and reacting to it,trying not to have an opinion themselves but going with the broader picture.

I,ve done my home work over the weekend.I've got my longs and shorts.I might change some of them when i sit at my desk an hour before trading starts and start looking at the latest news on briefing .com and CNBC.I'll also look at the pre market trading and see how all the stocks in the Naz 100 are trading.I,ve got two accounts,a scalping account and an intraday swing account.Between them i have four level 2 screens showing.

I trade with 20 other traders and i will listen for anything interesting that might be said from them all.Finaly i realy want the move today, up or down,further consolidation all day would be a bore,but i'll just get on and scalp it.

I,ve got one stock(VRSN)which can move 10% in a day,i've done my homework got my plan,got my levels and i,m ready to rock.If the Nas starts moving either way quickly i will switch in to this stock in an instant.As soon as i get in i dont need to think because i,ve done all my homework on it, i know everything i need to know to trade it and i,m away.

At anytime i feel this stock is going to run for three to four dollars i'm going to take a position in my swing account,enter a stop and close it down so its wiggling and jiggling dont freak me out.If it moves in my direction i'll open up the screen and trail the stop.More than likely i'll be scalping the stock in my other account to get a real feel for how its behaving.

IF this worked then i would hope to come out with profits on my scalping account and a large profit in the swing account.One of the reasons i trade the Nasdaq is becuse it is volatile and can give you decent profit oppertunities.

OK now two hours later from last post.I've just been looking at US web sites and one of the major ones has shown a 2 day graph of VRSN on their web site with their support level for the stock.It was $1/2 further away than mine was.So as the public realy follow this particular Guru, this has given me more information of where other retail daytraders will support the stock.To me its a real stroke of luck.He also posted where he wants his viewers to buy for the swing trade,once again this is giving me loads of more info for important levels to trade against.

THE TRADING PART

I arrive at work and because i've been into VRSN lately i check how the stock is trading premarket.I immediately go against my rules and buy premarket because it is trading at the support level mentioned on that US web site.I buy on the bid and get a great fill.I come to my senses after words from traders either side of me and offer it out on the ask $1/2 away.A little while later it gets taken and i'm 1% up,i make sure i let them know i've just had a result.
Now of course i'm fired up about VRSN and think its my day.So when the market opens and sells off i dont look at my list of shorts to trade with the trend,i scalp VRSN which is going against the trend(ie very strong).VRSN fills the gap but my scalping is mixed(to much wine at the weekend i think,i never drink Mon -Fri because i know it affects my trading).
I carry on scalping getting nowhere fast.I'm just to slow of the mark.I've seen this happen in my log time and time again on a Monday.
After VRSN fills the gap it consolidates at its highs and various comments from around the room about how strong it is dont help me take my next swing trade which is a short as First Boston is a big seller.This was alerted to me by a shout from another trader.
I stop scalping and take $1 profit from the VRSN plunge in my swing account
My swing account is up and my scalping account is down leaving me flat at the moment.

Now i know that VRSN can do a 3--4 dollar move during a day.So i reckon that if the general market stops sliding and hopefully improves.VRSN is strong against the market and it will run up strongly.So i wait and watch.VRSN finish's falling.i see First Boston buying like crazy on my level 2 and i go long in the swing account.I'm now scalping the stock in my other account.I call out to the room and loads of us are into VRSN.The stock moves beautifuly.

That was my move of the day,I got my scalping account sorted out,made another $2 in my swing account and went out and had a break.

I,m now flat in my scalping account after commissions and $3 1/2 up in my swing account which is approx 8 1/2% up.
VRSN didnt disappoint and came in with its daily three to four dollar run but now i feel its weak against the market and its right at its highs from the last two weeks.Which is $43.So i short the stock at $42.20 in my swing account,put in a stop just over $43 and close that account down so i cant see the wiggles and jiggles.I then stop trading because i'm up on the day and i'm using some of my profits on a risk reward stratergy on VRSN to hold overnight.AS the fed cut is later in the day on Tuesday it gives me ample time to manage the short on VRSN when i come into work on Tuesday.

I go home early leaving the short on VRSN live.When i get home i check VRSN's price which is within 5c of where i shorted it.So far so good.I try to finsh this article but to tired i go to bed.

Running the two accounts,was a tip i learnt from a mega trader in the States it has helped me out time and time again.Thanks Omar.
 

payneg01

Member
83 1
Hi Naz thanks for your posts, my thanks also go to Sharky, Chartman , Darth and all the other regular post-its on our site. Have a look at Acambis (ACM), it's been good to me in the past. I don't hold this stock to-day. Good luck Greg
 

romany123

Junior member
23 0
Thanks Naz
Awsome.....makes me feel like a schoolboy. Just goes to show the level of expertise on these boards. Think I will put the kettle on and have a think.
 
 
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