Details

Introduction xv <p>WHY SELL? xv</p> <p>ABOUT THE Q&A xvii</p> <p><b>PART ONE PSYCHOLOGY, RISK MANAGEMENT, & RECORD-KEEPING 1</b></p> <p><b>Chapter 1 On Buying</b> <b>3</b></p> <p>THE THREE GREAT DIVIDES 3</p> <p>ONE TRADER’S TOOLBOX 7</p> <p><b>Chapter 2 Trading Psychology and Risk Management 9</b></p> <p>YOUR MIND AS A TRADING TOOL 9</p> <p>RISK CONTROL 11</p> <p><b>Chapter 3 On Keeping Records 13</b></p> <p>GOOD RECORDS LEAD TO GOOD TRADING 13</p> <p>TRADER’S SPREADSHEET—BASIC ACCOUNTABILITY 14</p> <p>TRADING DIARY—YOUR KEY TO LASTING SUCCESS 16</p> <p>HOW TO DOCUMENT YOUR TRADING PLAN 20</p> <p>MARGRET’S METHOD—PUT IT ON THE WALL 24</p> <p>HOW TO GRADE YOUR PERFORMANCE 24</p> <p>TWO TYPES OF TRADING 26</p> <p>Questions 29</p> <p>Answers 45</p> <p><b>PART TWO HOW TO SELL 57</b></p> <p><b>Chapter 4 Selling at a Target 61</b></p> <p>SELLING AT A MOVING AVERAGE 63</p> <p>SELLING AT ENVELOPES OR CHANNELS 71</p> <p>SELLING AT RESISTANCE LEVELS 83</p> <p><b>Chapter 5 Selling on a Stop 95</b></p> <p>THE IRON TRIANGLE 97</p> <p>MARKET OR LIMIT ORDERS 99</p> <p>HARD AND SOFT STOPS 101</p> <p>A BAD PLACE 102</p> <p>REDUCING SLIPPAGE—TIGHTER BY A PENNY 109</p> <p>NIC’S STOP—TIGHTER BY A DAY 110</p> <p>WHEN TO USE WIDER STOPS 117</p> <p>MOVING STOPS 120</p> <p>A SAFEZONE STOP 123</p> <p>VOLATILITY-DROP TRAILING STOPS 124</p> <p><b>Chapter 6 Selling “Engine Noise” 129</b></p> <p>WEAKENING MOMENTUM 130</p> <p>AN “ENGINE NOISE” EXIT FROM A SHORT-TERM TRADE 132</p> <p>A DISCRETIONARY EXIT FROM A LONG-TERM TRADE 135</p> <p>SELLING BEFORE EARNINGS REPORTS 139</p> <p>THE MARKET RINGS A BELL 143</p> <p>TRADING WITH THE NEW HIGH–NEW LOW INDEX 148</p> <p>THE DECISION TREE FOR SELLING 151</p> <p>Questions 157</p> <p>Answers 183</p> <p><b>PART THREE HOW TO SELL SHORT 203</b></p> <p><b>Chapter 7 Shorting Stocks 207</b></p> <p>YOUR FIRST SHORTS 211</p> <p>THE ASYMMETRY OF TOPS AND BOTTOMS 214</p> <p>SHORTING TOPS 216</p> <p>SHORTING DOWNTRENDS 221</p> <p>SHORTING FUNDAMENTALS 224</p> <p>FINDING STOCKS TO SHORT 233</p> <p>SHORT INTEREST 237</p> <p><b>Chapter 8 Shorting Non-Equity Instruments 243</b></p> <p>SHORTING FUTURES 243</p> <p>WRITING OPTIONS 252</p> <p>FOREX 258</p> <p>QUESTIONS 265</p> <p>Answers 279</p> <p><b>PART FOUR LESSONS OF THE BEAR MARKET 291</b></p> <p><b>Chapter 9 Bears Make Money 293</b></p> <p>THE BEAR WAS BEGINNING TO STIR IN ITS CAVE 293</p> <p>THE SENTIMENT INDICATORS ARE EARLY 295</p> <p>THE TOP OF THE BULL MARKET 297</p> <p>BEARISH DIVERGENCE AT THE 2007 TOP 299</p> <p>THE BUBBLE POPS: MGM 300</p> <p>SHORTING A HIGH-FLYER 302</p> <p>A BEAR MARKET IS A DESTROYER OF VALUE 304</p> <p>SWINGING IN AND OUT OF A MAJOR DOWNTREND 307</p> <p>TRADING IN A DOWNCHANNEL 308</p> <p>PREPARED FOR A SURPRISE 310</p> <p>“BULL MARKETS HAVE NO RESISTANCE</p> <p>AND BEAR MARKETS HAVE NO SUPPORT” 312</p> <p>FOR WHOM THE BELL TOLLS OR THE HOUND BARKS TWICE 315</p> <p>MR. BUFFETT BUYS TOO SOON 317</p> <p>MAY I POUR SOME GASOLINE ON YOUR FIRE? 319</p> <p>KEEP SHORTING ON THE WAY DOWN 321</p> <p><b>Chapter 10 Groping for a Bottom 325</b></p> <p>THIS STOCK MARKET IS NOT GOING DOWN TO ZERO 325</p> <p>A “DOUBLE HELIX” GIVES A BUY SIGNAL 327</p> <p>JUST IN TIME FOR THE PARTY 328</p> <p>MY FAVORITE MAJOR BOTTOM SIGNAL 331</p> <p>SELLING A BULL 332</p> <p>EVERY BULL STUMBLES 335</p> <p>A SCREAMING SHORT 337</p> <p>Conclusion 341</p> <p>HANDLING PROFITS—THE PERSONAL DIVIDEND 342</p> <p>THE ROAD INTO THE FUTURE 343</p> <p>References 345</p> <p>Acknowledgments 347</p> <p>About the Author 349</p>

<b>DR. Alexander Elder</b> is a professional trader, a teacher of traders, and a psychiatrist. He is the founder of elder.com and SpikeTrade.com—both of which provide educational services to traders worldwide. Dr. Elder is the author of three bestselling books, <i>Trading for a Living</i> (translated into more than a dozen languages), <i>Come Into My Trading Room</i> (2002 Barron's Book of the Year), and <i>Entries and Exits</i> (2007 <i>SFO Magazine</i> Book of the Year).

<b>THE NEW SELL & SELL SHORT EXPANDED SECOND EDITION</b> <p>Any beginner in the stock market knows how to buy. Knowing when to sell will setyou above the crowd. This book will teach you when to sell and how to sell short.Stocks go down much faster than they rise, and knowing how to short doubles youropportunities. Amateurs don't know how to short and are afraid of it, but professionals love to profit from declines.</p> <p>This new and expanded edition includes an intensive study of the 2007–2009 bear market, with many specific trading examples, distilling the essential lessons of recent years.</p> <p>"Elder clearly shows how to take profits on winning trades or cut losing trades. He skillfullycombines technical analysis with trading psychology and risk management. Elder lets you in on a favorite game of market professionals — shorting overvalued stocks. His trading lessons from the recent crash are valuable and practical."<br /> —<b>John J. Murphy</b>, author of <i>Technical Analysis of the Financial Markets</i></p> <p>"<i>The New Sell & Sell Short</i> delivers practical techniques for selling and shorting. In his relaxed style, colored with humor, Alex details strategies for limiting risk and protecting profits. My favorite is what he calls 'engine noise,' illustrated in a great study of Ford. His chapters on shorting tops and downtrends make difficult tasks accessible to all. This is an indispensable book for investors and speculators alike."<br /> —<b>David Weis</b>, trader and author of <i>Trades about to Happen</i></p> <p>"Dr. Alexander Elder is one of the world's most respected teachers of trading mastery. I've read hundreds of books on trading and consider his writings to be among the mostvaluable and useful. Traders who do not know when to sell or how to profit from price declines keep missing major opportunities and expose themselves to unnecessary risks. <i>The New Sell & Sell Short</i> should be required reading for any serious trader or investor."<br /> —<b>Ed Dobson</b>, founder of Traders Press Inc. and a private, full-time trader</p>

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