Paring the list to the bone.

Lately I have been concentrating on four stocks. I realized that I might be able to handle trading two at the same time. I also realized that, amoungst these four that I short listed, most looked like the move roughly the same...some a bit more some a bit less.


I was trying to get familiar with a very few stocks to be able to make trading decisions on the fly and be more consitant in the gains...or at least to knew when getting out was prudent.


I have since changed my mind on that strategy and decided to go with only one stock. I chose the one that I have checked the most often...initialy because it was first alphabetically, second because it follows the TSX nicely and third because the price is small enough for me to trade 200 shares should I desire to. It wasn't the most profitable but was the most consistant in my trials.


In future I may go back to one or two of the others if this one changes it's pattern or response to the market in general.


So... the winner is ....

AEM - Agnico-Eagle Mines Ltd.


Trading between $50 and $60 right now.

Average daily swing greater than $1.50

60 days in the last four months the swing was greater then $2

Considering the average swing is about $1.50, that makes it about 2.7% swing.

Trading the first week 9 trades no losers



CNQ was the largest swinger at around $2 but the price was around $75 which is a 2.7% swing as well. It made more sense to have a smaller priced stock to allow more flexibility in position sizing rather than a larger price swing seeing as the performance is so similar percentage wise. Of 8 trades 3 were losers. It doesn't move as cleanly.



IMN was lower priced and higher swings but half the volume traded...just didn't feel as predictable in the moves, wider spread too so the slippage might be greater.

JD.