How to Make Money Selling Stocks Short

by William J. O'Neil and Gil Morales

Book Overview

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. 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...

• Format: Paperback
• Language: English
• ISBN: 0471710490
• ISBN13: 9780471710493
• Release Date: December 2004
• Publisher: Wiley
• Length: 208 Pages
• Weight: 0.83 lbs.
• Dimensions: 0.3" x 7.1" x 9.9"

Customer Reviews

Shorting is a Art form as well as technical

I learned of Gill Morales though Gary Kaultbaum's radio show and then Subscribed to the Gilmo Report as a result, A lot of this book is his writing and is well done. I have been trading now for over 20 years and you never stop learning. Shorting stocks is a stressfull endevor for me and the more I can learn proper entry the better. The book goes though how to spot tops in stocks and speaks of general market direction as well. There are lots of charts that should help you to get the basic theme of how to spot these stocks. You should have a good foundation in Technical Analysis and back that up with company fundementals. You can make much more money going short if you know how to do it correctly. Traders want out of the Pool a lot faster than they want to get in. This can result in 15 to 20 percent gains in several days.

Basic introduction to short selling

This is a primer to the perils of selling short. It has the caveat of how the market can punish you for being short and alerts you to the fact that you are liable for the dividend payments while you are short. A must-read for all serious traders.

Great resource for shorting IBD style!

I found that this book is in fact a great addition to my O'Neil and IBD library of great books. This gives the reader the other side of what to look for in stocks that are candidates for short selling. This not only helps your short side trading but the long side as well. By understanding the key concepts that IBD presents in this book you will understand when a stock has really started to loose it's strength which will help on both the long and short side. The concepts for shorting presented are very good. In fact I have never read any other resource to date that has the principles so clearly defined and laid out. This book explains key points that are necessary to look for to correctly take the short side. O'Neil and the guys really understand what they are doing. Great resource!

O'NEIL DOES IT AGAIN!

I must say I am never disappointed in William O'Neil. Most of the books on short selling are too complicated and high level. I thought his visual approach was brillant. The market is in need of more books with visual presentations, instead of just a straightforward narrative approach.

A Picture is Worth a Thousand Words!

Having had the rare opportunity to actually manage money for Bill O'Neil, I must say this book is extremely well done. The fantastic examples in this book are not only very well selected, but provide one with historical precedent that can be used as an invaluable tool for every bear cycle to come. These examples I might add, can not and will not be found anywhere else. On the surface, a "highly educated CFA" may complain that this book is nothing but a short check list with too many chart examples. I on the other hand, have found quite the contrary. A short check list and a plethora of successful models showing what has worked in the past, over and over again, is exactly what you want to study. In fact, I have had the complete and distinct honor of building one of the many model books that Bill has used to create this unbelievably successful system during his forty plus years of experience. Keep in mind, these model books are nothing but pages and pages of examples just like these. With that said, I can assure you, it is the understanding of these very charts and why they work, that will enable you to make consistent money in the stock market. Buying and selling stocks based on intricate valuation measures as used by so many "CFA's" really does not work. As a matter of fact, PE, which is one of the most commonly used valuation measures has absolutely zero correlation with a stock's price performance. To be sure of this, when you are done reading and more importantly studying all of the great examples in this book, I highly recommend any other book you can get you hands on with the name William O'Neil on the cover.