Stock trading tips - view stocks like a market maker
-
Upload
lux-investor-services -
Category
Business
-
view
2.870 -
download
0
description
Transcript of Stock trading tips - view stocks like a market maker
![Page 1: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/1.jpg)
www.investing-performance.com
Stock Trading Tips--
View Hot Stocks Like
a Market Maker
![Page 2: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/2.jpg)
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.
![Page 3: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/3.jpg)
I started in OTC Trading
at E.F. Hutton in 1966
I noticed stocks had
different characteristics
Price
Volume
Spread
![Page 4: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/4.jpg)
Stock Personalities
Some were lazy and some
jumped around wildly
![Page 5: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/5.jpg)
Before NASDAQ
We used the real Pink
Sheets to find market
makers and call three of
them by phone
![Page 6: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/6.jpg)
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
![Page 7: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/7.jpg)
Questions I asked as a market maker
First, who is my
competition?
What market makers were
in the stock?
![Page 8: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/8.jpg)
Types of Market Makers
Volume traders
Value traders
Investment bankers
trading their companies
![Page 9: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/9.jpg)
Who is high bid and low offer
Do these market makers
have an axe to grind?
![Page 10: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/10.jpg)
Spread and volume?
How fast can you get in and
out?
Can you beat the spread?
![Page 11: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/11.jpg)
Shares outstanding and float
Stocks with small floats
tend to be volatile
![Page 12: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/12.jpg)
144 sales coming?
Was it a shell – barred from
144?
Is the end of the holding
period coming up?
![Page 13: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/13.jpg)
Private Offerings?
Look out for Form D filed
with the SEC indicating
private placements
![Page 14: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/14.jpg)
Earnings Announcements
On what days do earnings
announcements usually
hit the market?
Watch for trading just
before those dates
![Page 15: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/15.jpg)
Convertible securities and warrants
Look for convertible
securities and warrants
that could affect the
market – at what prices?
![Page 16: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/16.jpg)
Recommendations
Are there research reports
or investor relations
campaigns? By who and
how reliable are they?
Press releases?
![Page 17: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/17.jpg)
Number of Shareholders
Is the list increasing for
some reason?
![Page 18: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/18.jpg)
Shorts
Is there a short interest?
Are they slamming the
stock down or being
squeezed?
![Page 19: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/19.jpg)
Is it a reverse merger stock?
Are the shell holders going
to dump and how ethical
are they?
![Page 20: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/20.jpg)
Reverse splits, name changes,
business changes
Has the company had
frequent reverse splits,
name changes, changes to
the next trendy business?
![Page 21: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/21.jpg)
Insiders
What percent of the
company do insider hold?
Are they buying or selling?
Is the company buying?
![Page 22: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/22.jpg)
Read their SEC or Pink Sheet filings
What is their status on
Pink Sheet?
![Page 23: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/23.jpg)
Dilution
Is the company thrifty in
handing out their stock or
do they regard it as toilet
paper?
![Page 24: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/24.jpg)
The Principals
Are they shareholder
oriented?
![Page 25: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/25.jpg)
Reputable affiliates?
� Who are the accountants,
attorneys, transfer agent,
investor relations firm?
![Page 26: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/26.jpg)
The Industry
� Is the industry popular?
� What is the company's
competitive position?
![Page 27: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/27.jpg)
The Chart – Tale of the Tape
� Where are the support and
resistance levels?
� Is the stock being
accumulated, marked up or
distributed?
![Page 28: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/28.jpg)
Anticipating news
� Imagine how the company
might develop and what
news might this cause
![Page 29: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/29.jpg)
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?
![Page 30: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/30.jpg)
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
![Page 31: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/31.jpg)
Learn more
� Curiosity may have killed the
cat but has saved the life of
many an investor
![Page 32: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/32.jpg)
Learn More – Subscribe Now
� Subscribe to my videos and
blog free
www. investing-
performance.com
![Page 33: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/33.jpg)
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
![Page 34: Stock trading tips - view stocks like a market maker](https://reader034.fdocuments.us/reader034/viewer/2022042518/5455d6c0af7959795d8b49e2/html5/thumbnails/34.jpg)
John Lux
� Trader, investment banker,
quantitative analyst, former
OTC market maker and
attorney
Lux.investor@ gmail.comCopyright ©John Lux 2011