Overview
William O’Neil’s approach for profiting in a falling stock market. It is helpful to have read “
How to Make Money in Stocks” beforehand, but with a weak outlook for stocks over the medium term, this book is certainly worth a read.
There are two sides to everything, except the stock market. In the stock market there is only one side--the right side. In certain market conditions, selling short can put you on the right side, but it takes real knowledge and market know-how as well as a lot of courage to assume a short position.
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The mechanics of short selling are relatively simple, yet virtually no one, including most professionals, knows how to sell short correctly. In How to Make Money Selling Stocks Short, William J. O'Neil offers you the information needed to pursue an effective short selling strategy, and shows you--with detailed, annotated charts--how to make the moves that will ultimately take you in the right direction.
From learning how to set price limits to timing your short sales, the simple and timeless advice found within these pages will keep you focused on the task at hand and let you trade with the utmost confidence.
Selling Short
In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as he will pay less to buy the assets than he received on selling them. Conversely, the short seller will incur a loss if the price of the assets rises.
Nowadays you can also go short by using services such as
IG Index or buy investing in ETFs which short a particular market, index or sector.
Shorting and going short also refer to entering into any derivative or other contract under which the investor profits from a fall in the value of an asset.
Going short can be contrasted with the more conventional practice of "going long", whereby an investor profits from any increase in the price of the asset.
