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I just started reading "A Beginners Guide To Day Trading Online" by Toni Turner She has a really good way of making her points on trading as well as Short selling.For you it may be just a refresher book but she makes it a how to book and tells it so that dummies like me can understand it.It may be worth your while to find and read her views on how to short sell. You wont have the troubles I have since you have more experience and .... Just my two cents worth. Bruce
Posts: 95 | From: Cocoa,Fl,USA | Registered: Feb 2004
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thanks seamonkey, read that one already, looking for something focusing explicitly on shorting.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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Shorting as you know is the opposite of going long the markets or a stock.
Once your comfortable with going long in the markets you may want to become comfortable with shorting as well.
After all when you sell a stock for a profit what you are saying is that you expect it is at or near its high, you expect that it will soon be lower in price or why sell.
The main difference between long and shorting a stock is that there is theoretically unlimited risk when you short a stock. That is to say the stock you short could go up and up causing you to lose and lose. Going long a stock limits your risk to the amount you invested. If it goes to zero you lose what you put in.
I primarily short only two things these days. IBM and the QQQ’s. I short the stock of IBM and will also buy options or puts on IBM. I only buy puts on the QQQ’s.
If you are comfortable trading long with charts or whatever system you use the shorting of a stock is just playing the negative side of your analysis and is really nothing new to learn.
All of your normal trading factors should be used … Risk tolerance, Gain Level to exit or what ever.
Contact your broker for the availability of the shares to short… And make money after you sell your long position.
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Hey Keith found this on the QBID thread hop it helps
To learn more about short selling, try reading the following books: "Tools of the Bear: How Any Investor Can Make Money When Stocks Go Down" - Charles J. Caes; "Financial Shenanigans: How To Detect Accounting Gimmicks & Fraud" - Howard M. Shilit; "When Stocks Crash Nicely: The Finer Art of Short Selling" - Kathry F. Staley; "Selling Short: Risks, Rewards and Strategies for Short Selling Stocks, Options and Futures" - Joseph A. Walker. None of these are perfect in their coverage of short selling but each has its strengths
Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
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