Maximizing Profits in Public Investments
Updated .....12/30/1999 - 01/20/2000 - 01/21/2000 - 02/19/2000 - 3/16/2000 - 3/22/2000 - 3/23/2000 - 3/26/2000 - 4/1/2000 - 11/18/2000 - 11/26/2000 - 11/29/2000 - 02/25/2001 - 04/05/2001 - 03/02/2002

(Underlined italicized text represents the latest additions to this training guide. Underlined text represents the previous additions to the training guide)


There is no one secret to maximizing your profits in the publicly traded markets. However there are some guidelines which we have developed specifically for the Hannaian system of business trading and investments.

IT IS IMPORTANT TO REALIZE THAT SINCE 1998 THE MARKETS HAVE DRAMATICALLY CHANGED AND ANY INFORMATION THAT YOU COME ACROSS ANYWHERE MUST BE EVALUATED WITH THIS TIME LINE IN MIND. STRATEGIES AND RULES WHICH APPLIED TO THE MARKET PRIOR TO 1998 MAY NOT BE APPLICABLE IN THE CURRENT MARKET, THERE HAVE BEEN TOO MANY CHANGES IN THE WAY STOCKS ARE TRADED AND ACCESS TO MARKETS HAVE CHANGED. SO IF YOU ARE RELYING ON INFORMATION PRIOR TO 1998 YOU WILL RUN A GREAT RISK OF LOSING YOUR MONEY IN THE CURRENT MARKETS. IT IS ABSOLUTELY IMPORTANT THAT YOU RECOGNIZE THAT THE MARKETS AND INVESTMENT OPTIONS ARE GOING THROUGH A MAJOR PERIOD OF FLUX THAT WILL LAST WELL INTO THE NEW MILLENNIUM AND THEREFORE YOU MUST BE PREPARED TO KEEP UP WITH THE CHANGES AND NEW STRATEGIES AS THEY OCCUR.

The greatest tool you have in making money with money is your realization of the principle of "Opportunity Cost". Every dollar you have in your control should be used to make money for you, and secondly at any moment in time there is one investment that is the best available at that moment. None of us are good enough to always find that best investment, but keeping in mind the principle of opportunity cost will keep you focused into trying to do what it takes to come as close as possible. "Opportunity cost" says that the true cost of any investment you make is the difference in value of that investment and a better investment which you did not make. This means that since no one has all of the money to make all of the good investments available we must try and make the best choices available at the time of our investment. Based on the circumstances involved we must always attempt to achieve the greatest percentage increase on our investment in the shortest period of time. While we will never be perfect or even close in this regard this is always the ultimate goal we aim for. Your level of knowledge and hard work will make the difference. This principle is perhaps first and easiest to use when determining where to put your money in the first place, a private investment or a public one. Then more specifically what type of system to use and investment to make. This is where your knowledge and hard work will make the difference, helping you make the difficult "opportunity choices" essential to minimizing your "opportunity costs."

1. First get familiar with and closely follow the rules in the Stock Investment Tool Kit. These rules give guidance on what type of stocks to buy.

2. Get familiar with the stock selections in the Hannaian Intellectual property Stock Focus and the rating system use in the reports. This gives you a starting point of some stocks we have already researched and shows you how we basically analyze stocks. Keep up with the HIPS service it provides a comprehensive and updated review of potentially valuable issues based on our proprietary system. It also provides the benefits of a network of HIPS knowledgeable individuals and their shared research activity. It also allows you the benefit of onsite research and investigations by members in their local geographic area, and within their spheres of influence. This is a very important aspect of network function and benefits.

3. Always do your research and keep up with it. Research, research, research. This is the number one activity you must be involved with.

4. Always, always, always stay abreast of the price changes in the stock. This is most important because it allows you to monitor prices, trends, purchases, gains, losses, percentages, and other changes. It also allows you to take advantage of volatility in the stock. This is the number two activity that will determine your success and set you apart from the typical investor more than any other. You must use good software to do this. We have recommendations ion the Stock Research Tools page to be downloaded free. A good one is MedVed Quote Tracker. If your funds or activity allows it utilize software that allows Level II Nasdaq quotes and direct trading access such as the Executioner system.

5. Be organized and ready to trade whenever you need to.

6. Establish a guideline target price for buying and selling each security you want to purchase. That is;

a. A price you will buy in at.
b. A price you will sell at if making a profit (e.g. 25% gain)
c. A price you will sell at if the stock is losing money (e.g. 25% loss)

These will be determined somewhat by how much of the stock you will buy.

7. Remember buy good companies with valuable intellectual property holdings, in hot sectors, with sound fundamentals, and good management.

8. Always research and buy the least expensive stock you can. There are major statistical and profit accumulation advantages to purchasing stocks at small prices.

Example: an investor with $10,000 can buy 10,000 shares of a $1.00 stock or 100 shares of a $100.00 stock. If his stock price increases by 20% the 100 shares of the $100.00 stock would bring a profit of $20 x 100 = $2,000. The $1.00 shares would bring $0.20 x 10,000 = $2,000. Although the profit looks the same, in reality how often will your $100 stock in a mature developed company move up $20 compared to the $1.00 stock in an emerging growth company having to move only 20 cents.

A more likely scenario is that the $100 stock will rise $5 dollars giving a profit of $500 dollars. While it is fairly easy for a $1.00 stock to rise 20 cents, giving the profit of $2,000.00.

In addition, how far can your $1.00 stock price fall compared to the $100.00 stock.

If you pick good relatively safe emerging growth companies, the chances for you getting a 20% increase is a lot more likely than in a much higher priced stock.

Also remember that high priced stocks usually start out as small priced stocks and as the companies matured the prices rose. You want to be able to find those small priced stocks which have the potential to rise. That is the real challenge to the smart investing in public securities. We know that there will always be companies which start small and grow large, your job is to find them before they grow. This must be the ultimate thrust of your research. Why spend valuable time looking at companies that have already matured and that everyone else has already discovered. Opportunity cost principles say that you would be better off spending your research time in the other direction, i.e., researching, finding, trading, and investing in low priced emerging growth companies.

9. Be ready to take profits on stocks which spike straight up in a short period of time. Many times they will fall immediately back and you will lose your profit if it is not taken right away. Knowing the behavior of a stock and studying its historical charts carefully will allow you to take advantage of these spikes or regular rolls of a stock's price where it moves up for a short period of time. One particularly important strategy we call "Spike Sale Buy Back" is an essential strategy to maximizing profits. When there is a sharp spike in a stock's price of significant proportions it is almost certain to drop just as precipitously. This rise and fall must be followed very closely to be able to sell the stock at the highest price. If the stock is one that is likely to rise in price at another time and you would like to maintain your position in the issue, you can sell all of it as close to the spikes summit as possible and rebuy (buy it back) after the drop. This allows you to keep the profit and still maintain the same number of shares you held before the sale. This is a simple but very effective and important concept to understand particularly when investing or trading in small priced stocks. Such stocks unlike large priced stocks are more likely to have the precipitous high percentage gain spikes that must be protected.

10. Watch the percentage gain and loss rather than the absolute dollar figure. This will usually facilitate your determination of buy and sell points.

11. take advantage of the strategies of using a margin trading when available. trading on the margin means you can borrow money, usually up to 50% of your account balance to trade with. This allows an increased ability to make profits. margin interest rates are usually below 10% and some brokerages like Datek provide margins much lower. This means as long as your investments are bringing in more than the interest on the margin you are leveraging your capabilities profitably with margin trading.

12. Take advantage of the leverage provided by use of check writing privileges in your brokerage account. not only does check writing privileges allow you easy access to the cash in your account, but it allows you to utilize monies you may need on a short term basis to make money for you until the time comes for you to spend it on the anticipated bill or purchase. for example if you have a $1,000 bill that you must pay in two weeks and you have the thousand dollars on hand for two weeks before your bill is due, you can trade with that money for two weeks and reap the potential of significant returns during that time. Check writing privileges are essential to this strategy since if you desire you can deposit some or all of your income in such an account and trade with these funds on a short term basis and then write a check on the account when you need to pay the bill or transfer the money to your bank account if you prefer. When operating your public acquisitions as a business this becomes an extremely important tool and strategy. These strategies are the same ones many large institutions such as banks and insurance companies use to profit from monies they hold and control but do not necessarily own or have as disposable income. More risk is involved here but this is also similar to some of the risks you would take if you were operating a conventional private business.

13. Study stock market psychology. This means that in addition to understanding and researching the fundamentals of a company, you must understand that many other factors affect the way a stock acts and how it trades. Many times the fundamentals of a company's operation will not determine whether or not its stock will rise commensurately. Fundamentals are important, but relate more with long term performance of stock prices. Short term price performance is determined more by many other factors best grouped and described as factors relating to what can be termed market psychology. Many may described this as a type of technical analysis, where price movements and the charting of these over time form the basis of predicting changes based on the behavior of the stock. Technical analysis is a kind of behavioral analysis of the market and stock performance. Understanding this "Psychology" of market and stock performance is extremely important especially for trading purposes. Understanding market psychology will not only help you pick the right stock but will determine when to buy, sell, or hold the issue.

14. Watch for changes in the maturity of a stock or company. On the HIPS Research report mature companies will be highlighted in yellow. When an issue changes in maturity it will usually begin to perform differently and is capable of quick and longer lasting growth in price. Understanding this phenomenon will help you make better decisions as to when to sell or hold your profits.

15. Diversify your portfolio, not just for safety purposes but for opportunity purposes. Stocks go up and down daily. If you have your money spread on several stocks you have increased opportunity to have gains in some of them every day. Based on your ultimate strategy and circumstances this diversification for opportunity purposes will allow you to regularly have some stocks always in the money. You can then develop your trading strategy to buy and sell to produce a regular and consistent cash flow. Allocate your available monies wisely with this concept in mind. Remember do not spread your investments too thin since you must make allowances for brokerage and trading expenses which have to ultimately be covered by the profits you generate. Particularly when starting your public trading operations expose no more than 20% of your portfolio in any one stock. The only reason to even expose this much is that for small accounts under $1000 you need to have enough invested to cover the trading commissions. As your portfolio grows in value you will expose even less of it on any one issue. As you have more money to invest you should establish a typical amount you will invest in any one stock. In exceptional circumstances when you can predict that an issue will rise in price you may deviate from this standard however it should be only in extraordinary and highly predictable circumstances.

16. The opposite of diversification can also be successful, but is more risky. But with risk comes greater rewards if successful. If you are certain that an issue will rise in price, loading up on it may produce spectacular gains. However your expertise, hard work and experience will determine your success with this strategy, it works if you are truly operating in the business approach mode.

17. Never worry about taking profits when they occur. One worry is that the price will continue to rise and you will miss out on further profits. Do not fall prey to this concern. If you are following the stock closely you will be able to expeditiously buy back into it. However if you do not take your profits when present you may lose the opportunity in these new volatile markets where there are a lot more traders and momentum watchers who take profits quickly and cause high volatility.

Remember to concentrate on the stocks that are rising and in preserving profits when they occur. This is necessary to maximize profits. You should always follow your portfolio on a stock by stock basis. Resist the temptation to operate your portfolio like a mutual fund by following the overall gain on a daily basis. This will distract you from your primary goal of taking profits individually when you need to. Remember that the new markets are very volatile and any dips in the price of a stock are very likely only temporary and does not reflect a true picture of the value of your holdings. The important picture is the stocks that are increasing in price. These increases must be watched closely to take profits when they come or to recover in stocks which have been true losses prior to the increase. You need to take profits in stocks which your research tells you are close to their all time high for a long period, or to take profits in stocks which are spiking sharply and which will fall quickly never to to see such heights for a long time if ever. If you picked good stocks in the first place the daily losses in these stocks are not significant since over the long haul they will rebound. Active trading however will allow you to take profits and prevent losses on swings in the price of stocks which are highly affected by the growing volativity in the markets. Therefore concentrate more on preserving gains, since your hard work and research in picking good companies will usually protect your downside. However In order to protect the downside be careful about watching for the signs of an imminent loss or depression. In such situations the "General Loss Rule" and the "Depression Income Rule" should be implemented. In fact by utilizing the General Loss Rule and placing stop loss orders and alerts to guard against price drops, you will be able to better concentrate on taking profits when they occur, while not missing significant drops in price.

18. Watch for stocks which provide excellent "Trading Performance". These stocks may not start low and gradually and consistently grow high in price. Due to the new volatility in the modern markets many stocks regularly rise and fall, some do so periodically and regularly. There are many reasons for this. The vast increase in general traders both individual and institutional, Day Traders and their techniques, plus the overall increase of investors and access to the markets have produced this phenomenon. in addition, the large percentage of "Dumb Money" in the markets (Those investors and traders who follow the herd, plus the vast amount of dabblers and part time players) is also responsible for this. The increased amount of, and access to, "Pump and Dump" schemes is also a cause of volatility. The "Smart Money" (well researched, business mode players) can take advantage of this volatility by judiciously trading such issues. In fact it is almost a necessity in the new markets to do this in order to be successful. Despite what traditional full service brokers and advisors may advise this environment is so pervasive today every one from the simple trader to sophisticated day traders and institutional traders are involved. It has become foolish to sit on the sidelines without recognizing this trend, seriously understanding it and profiting from it with the proper research and careful following. Without doing so your investments will be manipulated by this phenomenon and you will miss tremendous opportunities and profits. However essential to maximizing your success will be involvement as a "Smart Money" player in full business mode. This volatility or the regular rise and fall of prices called "rolling allows for a strategy similar to the "Spike Sale Buy Back" strategy which we call "Roll Sale Buy Back", where stocks which regularly roll can be sold at the high and bought back when they roll lower, thus allowing the trader to make the profit and maintain the same amount of shares at the lower buy back price.

19. Parking: Utilize the concept of "Parking" your money in good stable stocks rather than holding too much of it in cash. While it is important to always have some cash available to do quick and timely purchases, you must keep the potential for making money at its peak. If you constantly keep track of which stocks you can sell on short notice, you will have the ability to quickly raise cash need to take atvantage of new opportunities. Using this system you may then be able to keep almost all of your funds fully invested. Parking your money allows you to take advantage of some growth and even unexpected spike and roll potential rather than having the money just sitting on the sidelines. Be careful about parking your money if signs of a loss or depression is imminent, in such situations the "General Loss Rule" and the "Depression Income Rule" should be implemented.

20. Remember to consistently follow the research ratings as they appear on the HIPS reports. Regularly revisiting these ratings will prevent missing good deals at low prices. Many times in the midst of trading and other activities you will forget to purchase some issues you initially intended to. In addition conditions and circumstances are constantly changing and you will need to be constantly reminded of how stocks compare to each other in the important criteria which makes a difference in their performance. This is easily done by looking at the HIPS ratings and comparing stock to stock. The report format and rating criteria were developed over time with this in mind and helps to keep you focused on understanding the true elements of the issues. The regular comparison of these criteria between issues will help you in many ways, but the one most important assistance it provides is helping you to allocate your investment funds and prevent your missing out on stocks you should be invested in. This is a most important feature of H.I.P.S.R.S.. As you become more experienced in your public acquisitions activity you will hear many horror stories about fellow publishers missing out on opportunities they should have been invested in. Generally they discover their mistake after the stock has spiked in price and they realize they had initially thought about purchasing the stock or may even have thought they had purchased it. You will also experience this yourself. One way to prevent it from happening is to keep revisiting the ratings in the H.I.P.S. reports. These reports should always be open on your computer during the day so that you can quickly revisit them as needed. They are also designed to provide three (3) research links for each issue which can be quickly accessed if needed once the report is sitting open in the background should you need it.

21. In your initial evaluation and revisitations to the H.I.P.S. reports always make careful notice of the I.P. and Sector ratings. While all of the ratings are important these two should keep you focused on the main reasons we are interested in the stock. These ratings have a tremendous correlation to the ability of the issue to spike in price. The other ratings lend support in your determination of which stocks to pick when there are similarities in I.P. and Sector ratings between issues. The other ratings become powerful predictors in showing which I.P. and Sector rich issues have other strong attributes which should put them at the top of your list at any point in time.

22. General Loss Rule: In addition to the techniques employed in the training guide "Handling the Hannaian Spike, Drop & Roll", it is important to protect your profits or prevent losses by utilizing a rule to cut losses when the price of a stock gradually drops more than a specified amount. This general loss protection rule is utilized generally and is somewhat different than the rule used in the "Hannaian Drop" situation where the price precipitously drops. This general rule is utilized where the price of a stock may drop gradually over the course of a few days or longer. In such cases the sale of the stock should probably be ordered at the point where the price falls 10% to 15% below the point that it was purchased. The employment of this rule in a mechanical manner will remove the emotion tied to ownership of the issue and prevent continued losses in the stock. If followed closely it can always be bought back if it drops lower or starts to rise at some future point. This rule is referred to as the "General Loss Rule" or "10% Drop Rule". Stock portfolios should be constantly and regularly reviewed with this rule in mind to catch applicable issues which may otherwise be missed due a gradual fall in price. This rule is more easily implemented by employing stop loss orders with stocks on the major exchanges. With OTC:BB issues where stop losses are not available, utilizing the alert system in your stock tracking software to alert you when a stock drops to the 10% to 20% level is a most important technique. These alert levels and stop losses should be routinely implemented when you first purchase the issue.

This rule is basically the "Insurance" you must use when investing in small price non-optionable stocks. When investing in larger priced major exchange stocks this "Insurance" is best provided by "Spread Trading" techniques covered in the Hannaian Training Guides, "Basic Option Principles", and "Understanding Options & Option Strategies."

An important derivative of the GENERAL LOSS or 10% DROP RULE is the BETTY RULE. It was developed by one of the Hannaian Investment & Publishing Group's (HIPG) premier affilates Betty Williams. This rule deals with the philosophy of preventing losses and keeping cash to be able to stay ready for other opportunities that may arise, in other words not only preventing losses but perserving opportunity choices. It states that the price you pay for a stock does not matter once you have already bought it. What makes a difference is the trend in the price of the stock. If it is staying even or trending down and you believe it may drop further, you must sell it, no matter the price you bought it at, because you will be able to buy it back at a lower price later, or use the money elsewhere in the meantime. Selling at this point actually saves money by avoiding further losses. Losses can never be recovered, therefore you must do what you must to prevent losses...e.g. excercising the 10% Drop Rule or even selling before a 10% drop if the trend is down. This rule is especially helpful for traders and agressive investors who can watch their stocks closely.

An important aspect of the BETTY RULE deals with time lost. That is that the monies derived from the sale of the depressed stocks can be better used in the meantime to invest in issues that may be rising in the short run, rather than having these monies tried up in a depressed stock waiting to regain the paper loss.

The principle behind the BETTY RULE is that many investors look at the price they bought a stock at and make subsequent decisions about selling the stock based on that price or some other price related to it. This rule says that the emphasis should be on where the price trend is going despite the purchase price. If it is going down there is usually no good reason to hold it, and it should be sold because it can always be bought back later at the lower price, in effect saving money by preventing further losses. Since losses can never really be recovered, they represent lost opportunity.

23. Another rule which can be attributed to Betty Williams is the THREE (3) MONTH PROFITS RULE which states that you should plan your annual investment business strategy and objectives on no more than three good months of profits in the markets each year. This will allow you to realistically plan your resources for the normal up and down periods which the markets cycle through each year. As in any business there will be up and down times, fast and slow periods and good business people plan their operations around these. The Investor/Trader should therefore be geared up to take advantage of those times during the year when the markets are hottest. There is usually a three month or longer period each year that presents opportunities for significant profits, and Investors/Traders cannot afford to miss these periods. The THREE MONTH PROFITS RULE ensures that the Investor/Trader will not waste or by pass profits which can be gained during the best three months of the year. In other words if you can experience three good months of outstanding profits each year you should be able to enjoy a very successful and profitable investment business operation despite what happens the rest of the year.

24. STEVENIZING THE STOCK PURCHASE
An important safeguard that should be utilized when purchasing OTCBB stocks or any issues which may not allow stop loss orders to be placed is to "Stevenize" the purchase, a system designed to keep the investor tied to consistently implementing the 10% Rule in a mechanistic fashion. The Stevenization System is named for another influential HIPG affiliate Steve Deveaux who has been with HIPG since its early days. The system is inexpensive and should provide results which will average over time and pay off in the percentages. With the 10% rule you may lose a few run-ups in price but over the long term you will be far ahead by mechanistically limiting your losses to 10%. Stevenization involves several steps which should be implemented right after purchasing a stock, as follows:

1. Purchase the Stock
2. Immediately attempt to place a stop loss order 10% below the purchase price. If the brokerage system you used for the purchase allows you to place such an order then you are OK, if not then move to step 3.
3. If you cannot place a stop loss order at 10% below the purchase price then you must place an alert with an appropriate intra-day stock tracking and alerting service to alert you should the stock price fall 10% below the purchase price. Most of this type of software will allow you to effectively follow the price in real time if you are following your portfolio on an intra-day basis. (e.g. MedVed Stock Tracker)
4. Then register with an email alerting service which will provide an end of the day report on those stocks which trigger an alert (e.g. CNBC.com), and make sure you check your email regularly. Some systems hae both intra-day online service and end of day email alerting capabilities.
5. If the stock rises in price do your best to manually update the stop loss alert at 10 % below the most current price or find a stock tracking system that will automatically do so for you. (We haven't found one yet that we can reccomend to automatically do this trailing stop lost alert)
6. As soon as you get either an intra-day or end of the day report that an issue has lost 10% you must sell without delay.

Hand held wireless devices that do stock tracking and alerting can also be used in this process but maybe quite a bit more expensive than the process above. The most important thing is that you consistently follow this regimen each time you purchase a stock. Make this an integral part of every stock purchase. This will prevent losses which would otherwise occur if you do not have a mechanistic approach to peventing such losses.

25. Another derivative of the GENERAL LOSS RULE is the Depression Income Rule: Several times each year your stock portfolio will become generally depressed in price due to certain market environments and phenomenon which generally affects the issues for a one to three week period. Generally there is some condition, news, situation, or shift in the general money flow in the markets which will indicate this phenomenon. A good sign of it in the individual stocks is a significant slowing and drop in the average volume, with more declining (selling) than advancing (buying) volume. If this generalized depressed trend in the market can be recognized early enough in the decline a general sale of the declining issues can be made with a buy back later. This does save dollars in potential losses for those who hold through this depressed period even if as usual they recover their pre-depression prices. However what it does for the trader is make money because the issues can be bought back later after they have dropped at much lower prices and the profits pocketed while maintaining the same positions in the stocks. This is another good reason to pay special and close attention to your holdings and to keep special rules covering specific situations in mind at all times particularly the General Loss Rule. In order to draw and keep attention to this specific situation we call this rule "The Depression Income Rule".

Another important aspect of the General Loss Rule and its derivatives is that the monies derived from the sale of the depressed stocks can be used in the meantime to invest in issues that may be rising in the short run, rather than having these monies tried up in a depressed stock waiting to regain the paper loss.

26. TAX LOSS RULE
One important concern in protecting losses in investments in general is recognizing opportunities to take legitimate tax losses when an investment has dropped to significant losses. One important technique used is to buy the same amount of stock that you currently own at the depressed level and then a short time later sell the first block that was depressed. In this way you preserve your holdings in the issue but also lock in your tax loss in the issue. We call this the
TAX LOSS RULE. The straight forward method of taking a tax loss is to sell the stock before the end of the year and buy it back after 30 days to satisfy the IRS 30 day Wash Sale rule. However you may not be able to get the stock back at the reduced price after 30 days so if you really want to keep the same investment basis in the stock you must buy a similar amount before you sell the amount on which you will lock in the tax loss. This loss can then be written off dollar for dollar against your capital gains and the excess even carried over to future years. Tax losses add significant profits to you investment bottom line. REMEMBER TO CHECK THIS AND ALL INVESTMENT AND TRADING TAX RELATED ACTIVITY AND DECISIONS WITH A PROFESSIONALLY QUALIFIED TAX ADVISOR BEFORE EXCERCISING THIS TECHNIQUE.

27. An important rule that should be generally applied when figuring changes in price is one based on the statistical fact that the larger the price of the stock the faster it tends to move up or down. This is an important factor when deciding how fast a particular issue will rise or fall in price as compared to another of significantly different price size. This PRICE SIZE CHANGE rule is an important one to keep in mind when making buy/sell decisions between two stocks of otherwise equal quality.

28. Catching The "Day Ending Spike"
One very important technique is to search for a "Day Ending Spike". Many Hannaian Spikes begin with unusual upward moves in the price of a stock within the last hour of the day. The stock then ends the day on a full Hannaian Spike or on a significant up movement within the last hour. This is usually a sign highly predictive of a full Hannaian spike on opening in the morning or certainly a cross quote situation with the stock gapping open up significantly in the morning.

This is one of the most predictable signs of an impending Hannaian Spike which allows a trader to buy into a stock that is spiking or about to spike. The predictability allows for an almost certain profits and denotes one time when you may want to consider buying in big time on these issues to take advantage of the gap open that is almost certain to occur in the morning.

What this means is that you should make it a habit to search your current holdings and other stocks you are interested in during the last hour of trading every day. This strategy will provide you with many positive buy in opportunities over time.

One way to effectively find stocks which are spiking up during the last hour of the day is to use the global scan feature of the Internet Trader stock tracking software. Global scan is a screening type process which can be configured to find stocks which change by certain criteria. It can update the report periodically throughout the day and report it in the format you choose. It is a powerful tool to use generally, but particularly so, near the end of the day to find stocks which may be spiking. Internet trader can be downloaded from the link on the Hannaian Stock Research Tools Page.

29. Follow Money Flow Indicators......Following the charts on money flow into stocks and sectors will provide an important indicator into the potential for price accumulation. In addition on a short term trading basis the following of large block trades will give some indication of where a stock may be going in the short run. Such large block trades particularly in small priced issues and OTC:BB issues are significant indicators of where the stock price is headed. Obviously an increase in money flow indicates a rise in price, and a decrease in money flow indicates a fall in price. There are several charting sites and programs that provide such money flow indicators and real time Time & Sales information.

30. With the rise of the Internet and the vast increase in access to information and new trading techniques, the phenomenon of "day trading" has exploded. Professional day traders are in the business of executing multiple trades within minutes, only holding a position in a stock for so long as to derive their target price or to make a desired tactical move. This situation significantly affects market performance and events and must be thorughly understood because it will become even more ubiquitous and set new standards for public trading. You must understand the concepts, techniques and tools professional day traders use. Traditional investment traders, stock analysts and advisors suggest that day trading is a dangerous and foolish idea. Many of these same individuals also suggested that the Internet craze in investments was also a dangerous idea, today they are all into it. day trading is certainly not for the average trader or investor, but it is here to stay, and as with everything else knowledge is king. If you know that day trading affects the market then you must realize that you must understand its principles to understand the competition, modern market moves, manipulations, and fluctuations. In addition many of the techniques used by day traders will eventually set the standards for stock trading, simply because if they make money and work every one will use them, day trader or not. Remember as traditional advisors suggest anyone can buy a Microsoft, Intel or other leading stock and hold it over a long period of time to bring investment success. This is really relatively easy. The hard work where the real innovation occurs is in trading and understanding the cutting edge techniques that market makers use to control the market and stock prices. This is the professionals game and you must understand it even if you are not a day trader. The true market makers are really all day traders even if they don't want to admit it. They have no choice mmeting the competition demands it. The prinicples, techniques and tools used in this phenomenon called "Day Trading" is where you will find leading edge trading and investing knowledge. One excellent source of information can be found at the Pristine Traders education site at http://www.pristine.com/aeduc/edmenu.htm.

Click here to visit the Pristine Traders Education Site
Read this information carefully and understand it thoroughly if you want to maximize your profits.

Please read carefully the training guide "Handling The Hannaian Spike Drop & Roll" to further maximize your profits.

 

For Further details of the Hannaian Business network and its associated business opportunities visit the Business Opportunities Section of the Hannaian Publishing Website at http://www.hannaian.com/distribr.htm