This document provides advice on when to sell speculative stocks that have increased rapidly in value. It recommends selling when the stock price is up 10 times or more in a year, if the uptrend breaks or forms a higher uptrend, if it drops after moving sideways, or if mainstream analysts start discussing it as overvalued. The document advises not worrying about selling too early, as there will be more profitable opportunities, and to study trading strategies in depth to successfully trade volatile penny stocks.

1. www.investing-performance.com
Stock Trading Strategy
– When to Sell Your
Hot Stock

2. Disclaimer
Stock speculation is very risky
Make sure your investments are 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. A Very Important Subject
How to spot
when the stock has peaked

4. Speculative Stocks
I go for the maximum return
The type of speculative stocks
I trade have different rules
They are volatile and risky

5. 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

6. People get carried away
Speculative stocks go up fast
and peak fast
You have to be nimble and
alert
These stocks are challenging

7. 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
j

8. 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

9. Overpriced Stocks
You can use formulas to tell
when a stock is overpriced,
but overpriced stocks can
still go up

10. Market Capitalization
Is total market value of the
company reasonable in
terms of sales and earnings?

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. How Fast Up?
If the stock is up ten times or
more in one year, you are
looking for an excuse to sell

13. An Uptrend is Broken
Don't ask why – the market is
telling you to sell first and
find out why later

14. Three times uptrend
If the uptrend goes into a
higher uptrend and then
another, sell the spike

15. Dropping off a plateau
If the stock goes sideways
after going up, and then tips
down, get out

16. The Big Rule
Sell Too Soon

17. Look for any excuse to sell a
stock that is way up

18. No Regrets
Do not worry if you sold too
soon – there are more profits
waiting for you

19. 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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21. My books on Amazon
How to Find a Home Run Stock
How to Pick Hot Reverse Merger Penny
Stocks
How the Short Raid Your Stock, Destroy
Your Company and What to Do About it

22. John Lux
Trader, investment banker,
quantitative analyst, former
OTC market maker
Lux.Investor@ gmail.com
Copyright ©John Lux 2011