Week Two Results

	Wiggle Room Range
	Buy Price	Sell Price
BZ	$ 1.85	$ 2.20
GBNK	$ 1.90	$ 2.20
IGOI	$ 0.65	$ 0.75
CMRG	$ 2.00	$ 2.25
SSP	$ 2.00	$ 2.25
LCC	$ 2.65	$ 2.95
FRE	$ 0.72	$ 0.80
FOH	$ 0.68	$ 0.75
LVLT	$ 1.07	$ 1.18

 

BZ and SSP hit their buy price, but have not made it to their sell price yet. So I own $1000 each of those.

This week's numbers:

Week Ending	Stock	Invested	Sold	Fees	Net Profit
06/19	SSP	$1000	PENDING	$10	-10
06/19	BZ	$1000	PENDING	$10	-10
06/12	LCC	$1000	PENDING	$10	-10
06/12	FRE	$1000	PENDING	$10	-10
06/12	FOH	$1000	PENDING	$10	-10
06/12	LVLT	$1000	$1102	$20	82
06/12	GBNK (1)	$1000	$1157	$20	137
06/12	GBNK (2)	$1000	PENDING	$10	-10
	Profit to Date				$159

Step 2 – Finding the Wiggle Room

Now that I had my list I pulled up the charts for the last 10 days of trading. I noted the 10 day high and low prices, then eyeballed the chart to determine where I thought the wiggle room laid. No scientific statistical methods for me! I noted the wiggle room and then calculated what the profit would be if I bought at the bottom of the wiggle room and sold at the top of the wiggle room. I was only interested in stocks where I could make 10% or more in the wiggle room. This narrowed my list down to my top nine stocks.

These top nine are the stocks that I am going to use in my simulation over the next few weeks, to see if the system works or needs more tweaking.

	Last Ten Days		Wiggle Room Range		Potential
	Lowest Price	Highest Price	Buy Price	Sell Price	Per Share Profit in Wiggle Room	Percentage Profit in Wiggle Room
BZ	$ 1.59	$ 2.51	$ 1.85	$ 2.20	$ 0.35	18.92%
GBNK	$ 1.53	$ 2.45	$ 1.90	$ 2.20	$ 0.30	15.79%
IGOI	$ 0.60	$ 1.32	$ 0.65	$ 0.75	$ 0.10	15.38%
CMRG	$ 1.60	$ 2.60	$ 2.00	$ 2.25	$ 0.25	12.50%
SSP	$ 1.77	$ 2.58	$ 2.00	$ 2.25	$ 0.25	12.50%
LCC	$ 2.41	$ 3.20	$ 2.65	$ 2.95	$ 0.30	11.32%
FRE	$ 0.82	$ 0.71	$ 0.72	$ 0.80	$ 0.08	11.11%
FOH	$ 0.68	$ 0.75	$ 0.68	$ 0.75	$ 0.07	10.29%
LVLT	$ 1.05	$ 1.24	$ 1.07	$ 1.18	$ 0.11	10.28%
MGI	$ 1.45	$ 1.60	$ 1.46	$ 1.60	$ 0.14	9.59%
MSN	$ 0.61	$ 0.75	$ 0.65	$ 0.71	$ 0.06	9.23%
BSET	$ 1.95	$ 2.65	$ 2.20	$ 2.40	$ 0.20	9.09%
UIS	$ 1.28	$ 1.64	$ 1.40	$ 1.52	$ 0.12	8.57%
PIR	$ 1.75	$ 2.14	$ 1.90	$ 2.06	$ 0.16	8.42%
CNO	$ 2.30	$ 2.85	$ 2.45	$ 2.65	$ 0.20	8.16%
ETFC	$ 1.33	$ 1.56	$ 1.40	$ 1.51	$ 0.11	7.86%
PLA	$ 2.60	$ 3.39	$ 2.75	$ 2.95	$ 0.20	7.27%
EK	$ 2.48	$ 2.92	$ 2.60	$ 2.78	$ 0.18	6.92%
DYN	$ 1.87	$ 2.43	$ 2.05	$ 2.18	$ 0.13	6.34%
FRZ	$ 1.75	$ 2.00	$ 1.79	$ 1.90	$ 0.11	6.15%
FNM	$ 0.68	$ 0.78	$ 0.70	$ 0.74	$ 0.04	5.71%
AIG	$ 1.45	$ 1.74	$ 1.60	$ 1.69	$ 0.09	5.62%
RMX	$ 2.64	$ 3.00	$ 2.72	$ 2.85	$ 0.13	4.78%
OWW	$ 2.04	$ 2.48	$ 2.32	$ 2.42	$ 0.10	4.31%
BFLY	$ 1.15	$ 1.32	$ 1.19	$ 1.24	$ 0.05	4.20%
ALU	$ 2.41	$ 2.84	$ 2.60	$ 2.70	$ 0.10	3.85%
AEZ	$ 0.85	$ 1.56	No wiggle room
BBI	$ 0.69	$ 1.11	No wiggle room
FLWS	$ 2.25	$ 2.85	No wiggle room

Step 1 – The List of Potential Wiggle Room Stocks

The first thing that I did was get a list of all NYSE and NASDAQ stocks with a current price (I did this on June 7^th) of $3 or less. Then I went through the list and pulled out the companies that I had ever heard of before.

This got me down to 29 potential stocks:

Playboy (PLA)

US Airways (LCC)

Ready Mix (RMX)

Eastman Kodak (EK)

Conesco (CNO)

1-800-Flowers (FLWS)

Alcatel-Lucent (ALU)

Bassett Furniture (BSET)

Casual Male Retail Group(CMRG)

EW Scripps (SSP)

Boise Inc (BZ)

Orbitz Worldwide (OWW)

Guaranty Bancorp (GBNK)

Dynegy (DYN)

Pier 1 Imports (PIR)

Reddy Ice (FRZ)

American International Group (AIG)

Unisys (UIS)

MoneyGram (MGI)

Etrade (ETFC)

American Oil and Gas (AEZ)

iGo, Inc. (IGOI)

Bluefly (BFLY)

Level 3 Communications (LVLT)

Blockbuster (BBI)

Fannie Mae (FNM)

Fredericks of Hollywood (FOH)

Emerson Radio Corp (MSN)

Freddie Mac (FRE)

My Stock Selection Criteria

My selection criteria are really simple at this point:

1. The stock should be less than $3 per share – this may change as I have more money to invest.
   
2. I must have heard of the company before – this may change as I learn more about the stock market.
   
3. It must have easily identifiable wiggle room over the last 10 days of trading. Stocks that are going straight up or straight down are not targets for me.
   
4. Wiggle room has to be at least 10% - my current investing goal.
   
5. It must be trading on the NYSE or NASDAQ – no pink stocks.
   
6. (New one added after a week of looking at the charts) It must have reasonable trading volume. I am not sure how to define that at the moment, but will define it better as we go. For right now, if trading volumes are listed in the "thousands" instead of the "millions" or there was any time during the last two weeks where it showed no trading going on, I am going to take it off my list.