Phase 2 of Simulation

I am starting to get excited about all of this. During Phase One, I invested a total of $8000 in pretend money and made a profit, after trading fees, of $486 – about 6%. However, I also would still have $8000 tied up in the market. I will continue to track these purchases and results, but for Phase 2 we will assume that I have an additional $10,000 ($1000 per stock) to invest. Not exactly real world for me, but since I am going "live" at the end of the month with my paltry little $1000 total, I don't think it makes a difference. J

I got an annoying email from etrade a couple of days ago that they are raising their price per trade to $12.99 each. Blah. I will probably decide to change services later, but for now I will include the rate change in my calculations from this point forward.

So I went through the same stock selection process and came up with a new list of stocks. I think that doing this every four weeks should work for my purposes. I added some new criteria this go round. I have decided to exclude stocks trading under $1 from consideration. I think that the strategy will work for those stocks, but it will take a longer period of time based upon what I learned in Phase 1. I also figured out a starting point for including trading volume into the mix: If the daily volume is represented in thousands, not millions, I am excluding it from the list.

Here is the new list for Phase 2:

Symbol	Company	Sell Price	Buy Price	Return
BZ	Boise Inc.	$ 2.05	$ 1.70	21%
CNO	Conesco	$ 2.40	$ 2.00	20%
TWMC	Trans World Entertainment	$ 1.00	$ 0.85	18%
LCC	US Airways Group	$ 2.70	$ 2.30	17%
RAD	Rite Aid Corporation	$ 1.45	$ 1.25	16%
UIS	Unisys	$ 1.50	$ 1.30	15%
LVLT	Level 3 Communications	$ 1.50	$ 1.30	15%
GBNK	Guaranty Bancorp	$ 2.05	$ 1.80	14%
NLS	Nautilus Inc.	$ 1.30	$ 1.15	13%
SSP	E. W. Scripps Company	$ 2.15	$ 1.90	13%

 

Tracking of Phase One:

Stock	Buy Week	Invested	Sell Week	Sell Price or Sold	Fees	Net Profit
SSP (2)	07/03	$1000		2.25	$10	-$10
CMRG (2)	07/03	$1000		2.25	$10	-$10
IGOI	07/03	$1000		.75	$10	-$10
GBNK (3)	07/03	$1000		2.20	$10	-$10
CMRG (1)	06/26	$1000	07/03	$1125	$20	$105
SSP (1)	06/19	$1000	06/26	$1125	$20	$105
BZ	06/19	$1000		2.20	$10	-$10
LCC	06/12	$1000		2.95	$10	-$10
FRE	06/12	$1000		.80	$10	-$10
FOH	06/12	$1000		.75	$10	-$10
LVLT	06/12	$1000	06/12	$1102	$20	$82
GBNK (2)	06/12	$1000	06/26	$1157	$10	$137
GBNK (1)	06/12	$1000	06/12	$1157	$20	$137
Total Profit:						$486