Thursday, October 25, 2007
I don't even really want to write about my day right now but I'm forcing myself to because it's important to not let little things like losing massive amounts of money effect you too much.
I'll start by saying that when ANW traded $43.50 today, I had 2000 shares long and was up over $4000. I guess that was around 10:15 or so... so I was feeling pretty good. I mean, I made good money yesterday and surfed. Then, I woke up this morning, surfed, got to my desk at 9:25 and in less than an hour had made $4000 more. What's better than that?
That it closed down below $38 means that my day could have been much worse had I held it or bought more but that doesn't make me feel much better.
It's easy to look at the graph now and kick myself for being a little stubborn. I mean, the stock was down over 4 points with oil rallying like mad and the other shippers turning positive. I figured it had more to retrace. I at least thought that if it didn't retrace fully that $43 was a "safe area" for the stock to chill out at for awhile.
Wrong. I exited most of my position around $42. I had gains in the stock, but a fraction of where I was. Most of my "giveback" came in not realizing profits in this name. Probably $3000 of the $5000 I gave back.
Then, I started to play around with WCG. (To borrow a phrase from "the Fly," "Odd, no?") And yes, that graph is scaled properly... the stock gapped down 70 points or so...
So, mistake #2. After giving back loads of paper gains in one stock, I began dabbling in a stock that may be engaged in fraud. And I lost 2.5 points faster than you can say "Lester, The Wombat Of Stock Market Volatility." I bought at $50 and sold at $47.50.
I bought back at $55. I sold some at $59.50 and the rest at $50. Later, I churned the stock with 100 and 200 share positions and lost a couple hundred dollars more. It wasn't my worst stock of the day, but I lost a good amount it him, $550.
What else happened? My day had so many twists and turns that it's hard to remember... oh yes, the 1pm POT conference call bonanza.
First I short POT, up near $111 and quickly lost a point or so...
And then MOS, only I lost more here because I traded it with larger size because it felt "safer." It wasn't.
Basically, I didn't make many good trades at all after the ANW reversed on me. I stopped trading for awhile when my P&L was around $600 and I thought of calling it a day. However, I didn't because ANW called to me again. Needless to say, I lost more there.
All told, I ended about $5000 lower than where I was at 10:15 when I was at my "highs," both mental and financial. I have to say that a day like this is a very interesting case study in something psychological, though I'm not sure what exactly. I experienced many different feelings today. One thing that I can learn from today is this...
When you make a lot of money, don't get too happy about it. And when you lose a lot of money, don't get too upset about it. Don't form an emotional relationship with money.
Look upon gains and losses in the market with equanimity.
That said, I still feel like jumping out the window into my rhododendrons...
Here's the damn stats:
Best, MTG, $555
Worst, RDN, -$578
80,200 shares traded.
24 stocks traded. 9 winners, 15 losers.
NOTE: I have to get my stock link code back on my website. When I was screwing with the template the other day, I accidentally erased it. Deal!
UPDATE: It's 4:50 and still no word from Stewie. Until I hear from him, Stewie and his blog suck.
Momojuicing, $4832 on 21,600 shares traded.
Evolution, $2303 on 60,000 shares traded.
Stewie, $1200 on 35,000 shares traded.
OBAT, $572 on 8400 shares traded.
Akalawoo, $276 on 3 contracts traded.
Denarii, -$8 on 2200 shares traded.
Tapeworm, -$155 on 6 contracts traded.
Me, -$772 on 80,200 shares traded.
Dehtrader, -$931 on 11,300 shares traded.
Wow, what a day! The Wombat Of Stock Market Volatility was out in full force today as individual stocks jumped around like an innocent college student getting tasered.
Okay, that was in poor taste but I'm in a horrid mood.
And, with the volatility came some volume again. While it's still not great, I've come to appreciate any day we trade over 1.5 billion shares on the NYSE. Actually, it's amazing given some of the news out there that we only traded that much. But this is the new reality at the NYSE.
So the big news in the VO is that we added a fresh face, Stewie, into the mix. While Stewie is more of a swing trader than a daytrader he'll be posting his numbers here daily. Why anyone throws themselves willingly into the "pressure cooker" otherwise known as the VO is beyond me.
I'm trying to be in a good mood right now but the fact of the matter is that I feel like jumping out my second story window and landing in my deer-eaten rhododendron patch below... I guess it's time to get working of my daily post to purge myself of my pent up anger.
UPDATE: It's 4:10 and I have yet to hear from Stewie... this does not bode well for our "VO relationship."
UPDATE II: Evidently and "email issue." I take back what I said about Stewie. He's a great guy and his blog is "engrossing."
Will this chart...
Look like this chart soon?
Could be. However I won't be profiting from the move since I GOT STOPPED OUT OF MY FED SHORT AT $55!!!! I suck at "swing trading." Perhaps Stewie can teach me something.
That's right. Just when you thought the VO couldn't get any "bigger" there we go with another expansion.
While some of you may not know Stewie, he's famous over at Wallstreak where he routinely makes gobs of money while scaring bears out of the market. And I'd link to Wallstreak, but that would probably crash it's servers...
He has a no-frills type blog where he discusses his trades, discusses what it's like to have a football-shaped head, and explains that the market will continue to go up, forever.
Go check it out.
Meanwhile, I also want to extend the invitation to any traders out there who want to share their P&L via the comments section. I know there's that idiotic P&L thread over at "elitetrader" (where I refuse to link) but really, who wants to read through that crap!
It's much more fun here. Tell all your friends.
I had such a great morning surfing, and was feeling so "amped" (to use the slang that "the kids" use) that I came in planning to post this song right away.
Then, I started trading and I realized the song was perfect for today's trade as well. As Momo said over on his site, today is "one of those days" where you can either make a lot, or lose a lot. And already, at 11:13, I've done both.
I'm not particularly happy about it by the way, as I'm currently at the low end of my range. And I'm also "out of the market" suddenly. Like, I've lost the "electricity" needed to trade right now.
When you're in a fast market and then get out, it's sometimes hard to get back in.