Stock trading strategy - when to sell your hot stock


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Stock trading tips on hot stocks to buy now, stock market strategy, picking hot stocks, picking penny stocks, and how to buy cheap stocks. From “How to Find a Home Run Stock” and “How to Pick Hot Reverse Merger Penny Stocks” and also “How the Shorts Raid Your Stock, Destroy Your Company and What to Do About It” all by John Lux.

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Stock trading strategy - when to sell your hot stock

  1. 1. www.investing-performance.comStock Trading Strategy – When to Sell Your Hot Stock
  2. 2. DisclaimerStock speculation is very riskyMake sure your investments are suitable for youDo not trade with more than you can afford tolose.Seek professional investment advice.This is not investment advice.No warranties, you are on your own.
  3. 3. A Very Important Subject How to spotwhen the stock has peaked
  4. 4. Speculative Stocks I go for the maximum returnThe type of speculative stocks I trade have different rules They are volatile and risky
  5. 5. I start cheap Most people buy stocks because they are going up I buy them cheapI dont depend on a bigger fool to take me out
  6. 6. People get carried awaySpeculative stocks go up fast and peak fast You have to be nimble and alertThese stocks are challenging
  7. 7. Short Sellers Short sellers and market makers are always looking for overpriced stocksWhen these stocks show up on their screens, they goshort and knock them down j
  8. 8. When to Sell? We guess! It is easy to know when a stock is cheapNobody knows how far the excitement in an up move can go
  9. 9. Overpriced StocksYou can use formulas to tell when a stock is overpriced, but overpriced stocks can still go up
  10. 10. Market CapitalizationIs total market value of the company reasonable interms of sales and earnings?
  11. 11. A $100 million market cap for a company with $1 million in revenues is way too much Look for an excuse to sell
  12. 12. How Fast Up?If the stock is up ten times or more in one year, you are looking for an excuse to sell
  13. 13. An Uptrend is BrokenDont ask why – the market is telling you to sell first and find out why later
  14. 14. Three times uptrendIf the uptrend goes into a higher uptrend and then another, sell the spike
  15. 15. Dropping off a plateauIf the stock goes sidewaysafter going up, and then tips down, get out
  16. 16. The Big RuleSell Too Soon
  17. 17. Look for any excuse to sell a stock that is way up
  18. 18. No RegretsDo not worry if you sold toosoon – there are more profits waiting for you
  19. 19. Study UpYou need more than this basic summary if you are going to survive swimming with the Wall Street Sharks
  20. 20. Subscribe Free Subscribeto my videos and blog www. investing-
  21. 21. My books on Amazon How to Find a Home Run StockHow to Pick Hot Reverse Merger Penny StocksHow the Short Raid Your Stock, DestroyYour Company and What to Do About it
  22. 22. John LuxTrader, investment banker,quantitative analyst, former OTC market maker Lux.Investor@ Copyright ©John Lux 2011