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
Stock Trading Tips--
View Hot Stocks Like
a Market Maker

2. Disclaimer
Stock speculation is very risky and may not be
suitable for you
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. I started in OTC Trading
at E.F. Hutton in 1966
I noticed stocks had
different characteristics
Price
Volume
Spread

4. Stock Personalities
Some were lazy and some
jumped around wildly

5. Before NASDAQ
We used the real Pink
Sheets to find market
makers and call three of
them by phone

6. Deciding to make a market in a stock
I used fundamentals – the
company had an exciting
business and future =
there will be volume and
price change = market
maker profits

7. Questions I asked as a market maker
First, who is my
competition?
What market makers were
in the stock?

8. Types of Market Makers
Volume traders
Value traders
Investment bankers
trading their companies

9. Who is high bid and low offer
Do these market makers
have an axe to grind?

10. Spread and volume?
How fast can you get in and
out?
Can you beat the spread?

11. Shares outstanding and float
Stocks with small floats
tend to be volatile

12. 144 sales coming?
Was it a shell – barred from
144?
Is the end of the holding
period coming up?

13. Private Offerings?
Look out for Form D filed
with the SEC indicating
private placements

14. Earnings Announcements
On what days do earnings
announcements usually
hit the market?
Watch for trading just
before those dates

15. Convertible securities and warrants
Look for convertible
securities and warrants
that could affect the
market – at what prices?

16. Recommendations
Are there research reports
or investor relations
campaigns? By who and
how reliable are they?
Press releases?

17. Number of Shareholders
Is the list increasing for
some reason?

18. Shorts
Is there a short interest?
Are they slamming the
stock down or being
squeezed?

19. Is it a reverse merger stock?
Are the shell holders going
to dump and how ethical
are they?

20. Reverse splits, name changes,
business changes
Has the company had
frequent reverse splits,
name changes, changes to
the next trendy business?

21. Insiders
What percent of the
company do insider hold?
Are they buying or selling?
Is the company buying?

22. Read their SEC or Pink Sheet filings
What is their status on
Pink Sheet?

23. Dilution
Is the company thrifty in
handing out their stock or
do they regard it as toilet
paper?

24. The Principals
Are they shareholder
oriented?

25. Reputable affiliates?
Who are the accountants,
attorneys, transfer agent,
investor relations firm?

26. The Industry
Is the industry popular?
What is the company's
competitive position?

27. The Chart – Tale of the Tape
Where are the support and
resistance levels?
Is the stock being
accumulated, marked up or
distributed?

28. Anticipating news
Imagine how the company
might develop and what
news might this cause

29. What am I doing here?
What is my game plan for
making money in this stock?
Do I have an edge over
others and if not, why get
involved?

30. Rules for Investigating
Dig into what you don't
understand
Don't stop until you are
certain you have a real
answer you can rely on

31. Learn more
Curiosity may have killed the
cat but has saved the life of
many an investor

32. Learn More – Subscribe Now
Subscribe to my videos and
blog free
www. investing-
performance.com

33. Get my books 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

34. John Lux
Trader, investment banker,
quantitative analyst, former
OTC market maker and
attorney
Lux.investor@ gmail.com
Copyright ©John Lux 2011