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 | |||||
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