Stock Trading Strategy -- When to Sell Your Hot Stock by JohnLux2


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Stock Trading Strategy
  – When to Sell Your
       Hot Stock
Stock speculation is very risky
Make sure your investments are suitable for you
Do not trade with more than you can afford to
Seek professional investment advice.
This is not investment advice.
No warranties, you are on your own.
   A Very Important Subject

      How to spot
when the stock has peaked
       Speculative Stocks
 I go for the maximum return
The type of speculative stocks
   I trade have different rules
  They are volatile and risky
          I start cheap
    Most people buy stocks
   because they are going up
       I buy them cheap
I don't depend on a bigger fool
          to take me out
     People get carried away
Speculative stocks go up fast
        and peak fast
 You have to be nimble and
These stocks are challenging
        Short Sellers

 Short sellers and market
 makers are always looking
   for overpriced stocks
When these stocks show up
  on their screens, they go
short and knock them down
       When to Sell?
          We guess!
 It is easy to know when a
         stock is cheap
Nobody knows how far the
 excitement in an up move
             can go
      Overpriced Stocks
You can use formulas to tell
 when a stock is overpriced,
 but overpriced stocks can
         still go up
     Market Capitalization
Is total market value of the
   company reasonable in
terms of sales and earnings?
A $100 million market cap for
 a company with $1 million in
   revenues is way too much
  Look for an excuse to sell
         How Fast Up?

If the stock is up ten times or
   more in one year, you are
  looking for an excuse to sell
      An Uptrend is Broken

Don't ask why – the market is
  telling you to sell first and
       find out why later
    Three times uptrend

If the uptrend goes into a
 higher uptrend and then
   another, sell the spike
    Dropping off a plateau

If the stock goes sideways
after going up, and then tips
        down, get out
   The Big Rule

Sell Too Soon
Look for any excuse to sell a
    stock that is way up
         No Regrets
Do not worry if you sold too
soon – there are more profits
       waiting for you
          Study Up

You need more than this basic
 summary if you are going to
  survive swimming with the
      Wall Street Sharks
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   www. investing-
       My books on Amazon

   How to Find a Home Run Stock
How to Pick Hot Reverse Merger Penny
How the Short Raid Your Stock, Destroy
Your Company and What to Do About it
         John Lux

Trader, investment banker,
quantitative analyst, former
    OTC market maker

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