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.

1. www.investing-performance.com
Penny Stock
Tips

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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?

8. 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

9. 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

10. 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

11. 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

12. 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

13. Subscribe
Subscribe to these videos and my
blog:
www. inesting-performance.com

14. 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

15. John Lux
Trader, investment banker, former
OTC market maker and attorney
Lux.Investor@gmail.com

16. 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