Hunting for Profits in a Volatile Market

I try and look for stocks that have been beaten down and then are ready once again to resume what I hope to be a rise off the bottom.

Right now I have $26K spread out over 6 positions. They are;

Baytex BTE 
Alcanna CLIQ
Crescent Point CPG
Energy Fuels EFR
Enerplus ERF
Guyana Goldfields GUY

Canadian energy and lumber stocks have been beaten down. Is this the right time to be buying? I have no idea and these positions are swinging anywhere from $500-$750 a day.

I thought that GUY was worth a punt with gold moving higher but it looks like I may have picked the only gold stock that's not participating. The upside is huge here if it can back to it's high for the year.

I also like to only commit $4K per trade and sell if the position loses 10%. I may have to rethink that strategy as uranium is swinging violently from day to day.

Watch Cameco CCO as it is plunging to new lows if you're looking to find profits in this space.

Obviously I eliminate all stocks making new highs because who knows where they go from there. At least looking at stocks 50% below their 52 week highs we have the potential to get back there. Maybe, maybe not.

This is where I look for profits and how I screen stocks.

Take Your Losses Early and Move On

I never hang on to losers and hope they get back to where I bought them. I accept I picked a dog and redeploy the money int something else.

BUY Peyto PEY @ $4.30 - SOLD @ $4.08 = (239.98)

Some might just wait until PEY made some money for you. I'm just too impatient. It is a character flaw that I'm constantly working on.

BUY Avino Gold and Silver ASM @$ 0.83 - SOLD @ $1.01 = $950.00

Total Profits = $710.02

ASM just moved so fast to the upside that I wanted to lock in that gain and not get greedy. Could it move higher? Sure, but taking 22% in a couple days is never a bad idea and helps preserve capital gains. That's the name of the game here.

It's not just losers you have to cut loose but also those picks that aren't moving at all in either direction. Volume has dried up for whatever reason.

Don't let others push you off your positions or listen to experts on TV before you make a move.

Random Thoughts

I've been watching Canfor CFP for a sign it might be making a comeback. It seems the company is just getting smaller and trying to conserve cash. The stock is making wild swings but I do believe Canadian lumber stocks could offer great value just like gold stocks did this time last year.

Keep watching the market for a possible entry point.

I try and have no more than 5 trades going at the same time.

I'm NOT a day trader, if anything Momentum trader. I look for unusual upward spikes in volume after a stock has bottomed.

I bought Enerplus at it's 52 week low yesterday of $8.21

Like I said earlier, it seems there is no interest in energy stocks right now. If and when we get a turnaround in sentiment these stocks offer great potential.

I'm not interested in what anyone else says or does, I just watch and act on what the market is telling me.

I have to trim one position to get back to five.

Alcanna might be it as it's done nothing and I'm down 2.6%

I have $1,316 in cash in my trading account. Lots of red on paper.

I'm hoping for a turnaround day today going into the weekend. I may do nothing. Who knows.

I will update my positions and profit/losses tomorrow.