Recap of Stock Picks From February 16th 2007
This is part of my recap series for stocks I selected based on the StockScores strategy. If you didn't read the original article, here it is.
I wrote another article on this strategy called StockScores and Analyzing Stock Picks. The basics are certain statistics being in the recommended zones and a good chart pattern. I wanted to prove this strategy for myself and try paper trading.
Recap of My Picks
If I sold everything from the 16th today I would have had an actual return of -14.6%. The markets have been brutal so read on to see why.
All my picks met the criteria of a StockScores Sentiment score of at least 60 and a Signal score of at least 80. These are two numbers calculated and provided free of charge by StockScores Analytics using there "secret" formula.
The first was ETG on the Toronto Stock Exchange (TSX). It broke resistance. Bought at $2.03 and put in a stop loss at $1.75.
Since Then: Last traded at $1.60. Nothing but down.
Action: I would have sold at $1.75 and taken a loss on the position.
Where Did I Go Wrong? There was resistance in November at a little over $2.00. This could have limited the gains. I think the biggest problem with this stock in the short term was a small upside in comparison to the downside.
T.ETGNext up is TTH on the TSX. It had recently broke through some resistance and had dropped. I thought it was a good opportunity to buy a correcting stock and then ride it farther up. Buy at $2.20 and stop at $2.00.
Since Then: It did go up to $2.30, but has since dropped to $1.88.
Action: It was sold. Another loss.
T.TTHNow for PTM. This trades on the TSX as well. It was classic. Broke out on high volume. Buy at $2.98 and stop loss at $2.55.
Since Then: Big drop shortly after my buy, but not too my stop loss. It is down to $2.58 right now.
Action: Hold on, but keep a watchful eye.
T.PTMLast is CPX on the TSX. Broke resistance on volume. Buy at $6.83 and sell at $6.00.
Since Then: It has slowly dropped since it's big spike. Trading today at $6.14.
Action: Hold on, hold on, hold on.
T.CPXOverall
Here are my overall numbers. We will assume I put $2,000 into each stock and paid $30 on commission when I bought and would pay the same if I sold. If I exited all my positions from the 12th today. Here are the numbers.
| Stock | Purchased | Sold | Change | Profit After Commission |
|---|---|---|---|---|
| T.ETG | $2.03 | $1.75 | -13.8% | -$335.86 |
| T.TTH | $2.20 | $2.00 | -9.1% | -$241.82 |
| T.PTM | $2.98 | $2.58 | -13.4% | -$328.46 |
| T.CPX | $6.83 | $6.14 | -10.1% | -$292.05 |
| Total | -11.6% | -$1168.19 | ||
What a brutal set of picks. For your information though, the market has been dismal the last couple days. There has been turmoil overseas and the DOW had its biggest one day drop since 911 five years. When I factor in my commissions I would suffer a loss of -14.6%. Also, I would have only held on to 2 of the stocks, so I would have the leftover money from the sales to enter into new positions in the future.
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Category: Investing
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