My Experiment is Over!

For a while, I was experimenting with a stock trading technique.

The Idea

I picked a stock based upon its Beta value, which indicates the volatility of the stock price. The higher the Beta value, the more the stock price fluctuates.

I tried this, because I tried to extend my test with the Slow Stochastic technical indicator, telling me when to buy and sell. The more volatile the stock price, I figured that it would provide me with more opportunities to buy and sell--and MAKE A PROFIT.

Note: The Slow Stochastic indicates when a stock is theoretically overbought (time to sell) or oversold (time to buy).

Test Number Two: Cheating the Technical Indicator #2

I'm still cheating my technical indicator test with Biopack Environmental (BPAC).

I'm still doing the Buy & Hold thing on this one, and it's pretty boring right now.

Buy Price: $0.29/share

Current Price: $0.19/share

The financial numbers were released recently, and they looked pretty good. I wonder whether I'm missing something here.

I admit that there seems to be a limited amount of profit on environmentally friendly food packaging material, but we DO eat a lot of food on this planet. I imagine that someone would have to sell a whole lot to make a modest amount of profit, though.

I'll keep you posted.

Test Number Two: Cheating the Technical Indicator (Part 2)

I'm still holding onto Biopack Environmental (BPAC), and I'm still cheating.

I'm not using the Slow Stochastic technical indicator. I'm using that ol' buy and hold method now.

I have to admit, it's certainly not as fun to just sit there and hold onto something. Trading is really pretty fun.

However, with this one, I'm learning that it's probably the right thing to do.

Test Number Two: Techinal Indicator (Part 5)

I stopped playing by the rules for this test.

I was trying to use the Slow Stochastic technical indicator to determine my "buy" and "sell" signals for Biopack Environmental (BPAC). Today, I got the "sell" signal.

Here are the stats:

Test Number Two: Techinal Indicator (Part 4)

The Market just opened an hour ago, and I'm already down around 20% today. That doesn't include yesterday big loss....or the day before that.

The technical indicators keep telling me to buy, buy, buy. The MACD told me not to buy, but most of the others seem to point toward the "buy" signal.

Biopack Environmental (BPAC)
Original Buy Price: $0.29/share
Today's Price (Early AM): $0.20/share.

Let's hope this thing changes for the better, but I'm not so hopeful. I've been wanting to cut my losses for a while, but I'm trying to remain patient throughout this experiment. So far, I'm really being tested.

Test Number Two: Techinal Indicator (Part 3)

My test using technical indicators continues with Biopack Environmental (BPAC).

I bought this at $0.29/share.

Today, it sits at $0.25/share.

My common sense told me to sell at $0.27 or $0.26/share, but the technical indicators keep saying "buy" instead of "sell."

My next test will not be a OTC stock. It's not always easy to get up to the minute quotes. So I'm never very secure that I am getting the read on the technical indicators at the time I need them.

We'll see what happens. If this doesn't work, it will just be a test gone wrong--not my major investment portfolio. There is time, still, since it has gone as low as $0.08/share during the past year.

I'll continue to post the play-by-play on this one as it unfolds.

Continuing My 2nd Test

Today, I continued my second test with BPAC.
Yesterday, I bought it at $0.29/share. Today it dropped to $0.28/share. Now it's rebounded to $0.30/share.

Since I'm testing things using the Technical Screener (Slow Stochastics), I'm not selling it, yet. However, it IS killing me.

I don't know how soon I will enter another OTC stock. It doesn't seem to have enough trading volume to afford the buying/selling flexibility that I want. You cannot put in a limit; so you have to keep checking the prices 6,000 times per day. I like gathering data, but NOT THAT MUCH!!!

Plus, I don't know that I can sell it at $0.30/share. The Ask (Buy) price is $0.31/share, but the Bid (Sell) price is listed at only $0.28/share.

I'll keep you posted.

Test Number Two: Techinal Indicator, with a Twist

I had an idea I wanted to test.

I looked at a list of stocks that were really volatile (Beta Value > 10.0). There were a few.

I picked one from the list where the Slow Stochastic Technical Indicator told me to BUY.

So I bought some at $0.29/share.