How to Make Money Selling Stocks Short by O'Neil William J. & Morales Gil

How to Make Money Selling Stocks Short by O'Neil William J. & Morales Gil

Author:O'Neil, William J. & Morales, Gil [O'Neil, William J.]
Language: eng
Format: mobi
Publisher: Wiley
Published: 2008-05-01T16:00:00+00:00


Don’t Run with the Crowd

When it becomes obvious to sell short to everyone around you and they are all doing it, you should stop and cover your short positions because it is then too late and they will probably be wrong in their timing. You are better off to trade alone, trusting your own analysis and study of timing and selection of proper short sale price patterns. Following the crowd in the stock market rarely works.

Puts and Calls

If you believe a stock is going down in price and don’t want to sell common stock in the marketplace, or find it difficult to get stock short in the market, it is possible to use put options to achieve the same purpose. Don’t buy any put or call without at least studying the earnings and price-chart history of the underlying stock, just as you would with the stock itself. If put options are used, you should definitely limit the proportion of your overall investment account you will commit to option trading. A prudent investor or trader should never expose all or even the majority of his or her capital to options.



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