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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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www.investing-performance.com
Penny Stock
Tips
Disclaimer
� Stock speculation is very risky
� Do not trade with more than you can afford to
lose.
� Seek professional investment advice.
� This is not investment advice.
� No warranties, you are on your own.
Penny Stock Tips
� Penny Stocks are ultra-hazardous
� There are many scams in penny stocks
� Small stocks are easier to manipulate
– They are easy prey for short sellers
� See my video “Anatomy of a REAL Pump and
Dump” on YouTube.com
� Penny stocks need promotion to move them
Penny Stock Companies
� Penny stock managements usually put the
investor first – right after their own wallets
� They may pay themselves big salaries and perks
� They may raise money by using massive dilution
– Dilution is selling stock below its value
– This reduces the value of your stock
� They may dump their own stock on the market
Penny Stock Companies
� Penny stock companies may also crush your
stock value by making ruinous reverse splits
� Penny stock managements may simply abandon
the company
What to Look For
� Look first for value
� Find stocks selling below book value
– This may be impossible if information is missing
� Look for low market capitalizations
� Look for insider buying
� Look for preparations for development
– reorganizations
What to Look For
� If you have found value, then look for possible
excitement
� Get out your crystal ball – what will happen?
– Anticipate and predict
– Call the company
� Is the company doing research, coming out with a
new product, looking for a deal?
How Stocks Move
� Stocks move in a pattern of accumulation –
markup – distribution
� You want to buy when the stock is being
accumulated for an up move
� Buy with the smart money
� Avoid chasing price – look for good cheap buys
� Penny stocks often have huge swings =
momentum
Look at the Chart
� Look for stocks with low market values
� Look for stocks moving sideways in patterns that
suggest they are being accumulated
� Watch for upside breakouts
Do Not Chase Price
� Do not chase price
� Penny stocks can turn on a dime
� Do not get carried away by news
� Avoid stocks being hyped
� Avoid spam stocks
When to Sell
� Sell too soon
� Sell at the first sign an uptrend is broken
� Do not ask why
� You will find out six weeks later when the price is
down significantly – too late to sell
� Do not average down in a penny stock!
� Live to trade another day
Biggest Tip
� Keep learning more
� Professional traders stay on top of their game
– They study everything out there
– They know the right information is worth tons
� Learn from your mistakes and your profits
Subscribe
� Subscribe to these videos and my
blog:
� www. inesting-performance.com
Learn more from books – Amazon.com
� How to Find a Home Run Stock
� How to Pick Hot Reverse Merger Penny
Stocks
� How the Shorts Raid Your Stock,
Destroy Your Company and What to Do
About It
Get More Tips
� Subscribe to my blog for stock pics
– www. investing-performance.com
Read my blogs and my books are on Amazon.com
– How to Find a Home Run Stock
– How to Pick Hot Reverse Merger Penny Stocks
– How the Shorts Raid Your Stock, Destroy Your Company and What to Do About it
Subscribe to my videos
Copyright ©John Lux 2011
