Monday: +1000
Tuesday: +2000
Wednesday: +5491 88,200 shares
This week has been great for financial stock traders. It seems like every move is about 75 cents even in the 10 stocks. I've been pretty sick though, so have been going home early and crashing, which has been the reason I skipped the last few post. I don't know if other people have noticed this for themselves, but I tend to trade better when I'm sick. I don't know the reason, but I know playing baseball was the same way. I always had my best games hitting and pitching because I zoned in more, and every thing seemed slowed down. Of course, I've only been trading half days, so the weariness of being sick hasn't truly gotten to me.
Today was all about WB. I made some money premarket jumping on LEH long when it was negative and every other broker was positive, but I made about 4500 in WB today.
The opening move in WB was ridiculous and screamed short cover. The market was negative, brokers, except MS, were all negative, and the rest of the banks were negative to up 1.5%. Yet WB, with no news, was trading up 8.5%. I waited for the big volume spike and the shooting star formation in WB signalling the top of the short cover and hit the bids at 30.23 after it had run up from 28.14 to 30.50. There was hardly an uptick all the way down to 29.60 and I covered at 29.65 when we held for a little. However as the market bounced some WB could not get above 29.70, so I shorted again at 29.48 when the market started to breakdown once more. This time WB ran all the way down to 28.50 and began to bounce where I covered at 28.65.
WB has a huge short interest and today was the day some decided to cover because as the market sold off to down 100 points, WB rallied back up to the 30.00 level. Then MER came out with write down news tanking the rest of the financials and WB and JPM remained strong for the banks. But as the market sold off further and brokers got slaughtered with WB still up 3.5% I began shorting again at 29.00 looking for a run down to flat on the day. WB came in to exactly flat and started to bounce and I covered at 28.25.
WB has a difficult stock to trade because it tends to be up huge on down days and down big on up days. Today I had a good read on it when usually I do not. Tomorrow is going to be a very difficult day to trade with options expiration and a 3 day weekend coming up, so I'll most likely make it a half day again.
Wednesday, March 19, 2008
Week so far 3/17-3/19
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7 comments:
nice work, congrats!!!
Yeo Evo what's good man how much you luvin this juicy market huh???? These financials are absolutely disgusting that move in Freddie and Fannie this morning was insane... Nice trading though mah man!
hey ET,
thanks for the answer to ur previous post. i am still making the mistakes of entering the position when the stock is still going up or when is falling instead of waiting for the reversal. today i went short in WB at .00 and i got stopped at .20, seeing it later to crash 2$. i keep making the same ol' mistake over and over (going against the momentum being scared that i will miss the reversal move). still i have learnt alot from u and sanglucci over the past months and i am happy that ur blogs are out there to give us some clues. today i shorted BAC in the highs when the SPY was going down and BAC was refusing to move. had i been more confident i would have made shit load of money. i made 60 cents on the trade with 300 shares although i entered for 1 point. however later i lost alot of money trying to catch a falling knive in the financials, which really shook my confidence.
keep up the good work man...people like u and sanglucci give me the strength to stay on the positive side. :)
Swift,
Just wanted to say I was in the same boat a while back. I'm also a reversal trader, but am now waiting for confirmation of the reversal in the form of taking out the prior bar's high (if that makes sense). Used to trade nice doji's and hammer's after long declines, but would not wait for the doji/hammer high to be taken out. Two largest losers came trading like this. Stock prints nice doji or hammer, but continues down...Now I wait for confirmation, maybe miss out on a few cents, but feel more confident and the numbers support it. Good luck.
Masterjaz out
Thanks guys. It seems the market has a lot more momentum than in the past few months, so it's not necessary to pick the tops to feel comfortable in these big sell offs or theh bottoms on the rallies. They seem to go a good distance fast. So if you're in a trade and it's not immediately going your way 5-10 cents, then maybe look to start exiting, because the big trades I've caught have been the ones that don't tick against me for the first 1% of the move. The trades that I lose money in are the ones that fight me then explode as soon as the market goes against me as well. Swift, the WB trade, I actually was in the exact same boat as you. I shorted at 29.95 and was stopped out at 30.05 on the first up move. But then was confident enough in that trade to try it again. I saw the reversal pattern and the stock hardly ticked against me again. If your idea is solid, stick with it and wait for the tape action to turn in your direction.
Sanglucci,
Absolutely love the financials right now. Every day there is a chance to catch a 5% move in something. Hope the volatility stays up and you keep killing it.
Edwin,
I've been following your blog for a few months now and have been very impressed by the consistency of your profitability. You seem to have a good sense of how to find and capture opportunities as well as how to manage your risk.
The reason I'm leaving this comment is that I've built numerous automated and semi-automated high-frequency trading platforms and I'm looking for a trader with whom I can partner for this latest version. What I'm suggesting is that I could build a custom trading application around your ideas and trading style that would allow you to trade a lot more stocks and manage risk more systematically. With this system you would be able to set up and adjust trading parameters for stocks on an individual or group basis and leave the order management up to the software. The concept and technology are based on what's being done at the most sophisticated and successful trading firms in the word, but what I need is a trader who knows how to make money consistently and who has the ability to describe at some level what is they're trying to do.
While you're probably making around $1,500 per day now (which is great), with a custom built trading app we could probably magnify that number substantially. I'd rather not write any more about this in a public comment, so if this sounds at all interesting to you then please just send me an email (jasonr11@gmail.com) so we can set up a time to talk. Even if you're happy with what your doing and aren't sure you want to change anything, I think this would at least be worth a 15 minute phone call.
By the way, I would have sent you an email, but since you don't have an email address posted on your blog I had no other choice but to leave a comment.
Thanks,
Jason
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