Book description
A detailed look at one of the most underestimated aspects of trading-selling
In The New Sell and Sell Short, Second Edition, Dr. Alexander Elder explains how to exit a stock at the right time and how to initiate a short position to profit from a stock that is showing weakness. Often overlooked, selling properly enables a trader to cut losses and maximize profits. Moreover, short selling in a weak market can generate big profits and should be a part of every trader's arsenal of tools. The new edition contains numerous examples of short selling stocks from the 2008-2009 bear market, demonstrating very clearly why traders do themselves a disservice by only focusing on the long side. In addition, the new edition contains an extensive study guide to help readers master the material prior to trading.
Elder shares real-world examples that show how to manage your positions by adjusting your exit points as a trade unfolds.
- Contains new examples and insights from the 2008-2009 market meltdown
- Includes an extensive study guide with 115 questions and answers and 17 chart studies
- Discusses the selling process from a variety of angles: technical, fundamental, and psychological
- Explains how to maximize winnings in a profitable trade and how to minimize losses when a trade doesn't go as planned
- Offers detailed guidance for traders of stocks, financial futures, commodities, and currencies
- Explains how to set profit targets and stop-loss orders prior to entering any trade Other bestselling titles by Elder: Trading for a Living, Come Into My Trading Room, and Entries and Exits
Understanding where and when to sell is essential to successful trading. The New Sell and Sell Short, Second Edition is the definitive reference to this overlooked, but vitally important, aspect of trading.
Table of contents
- WILEY TRADING SERIES
- BOOKS BY DR. ALEXANDER ELDER
- Title Page
- Copyright Page
- Dedication
- Introduction
-
PART ONE - PSYCHOLOGY, RISK MANAGEMENT, & RECORD-KEEPING
- CHAPTER 1 - ON BUYING
- CHAPTER 2 - TRADING PSYCHOLOGY AND RISK MANAGEMENT
- CHAPTER 3 - ON KEEPING RECORDS
-
PART ONE QUESTIONS - PSYCHOLOGY, RISK MANAGEMENT, & RECORD-KEEPING
- Question 1—The Stress of Holding a Position
- Question 2—Your Trading Edge
- Question 3—The Three Great Divides
- Question 4—Price and Value
- Question 5—Fundamental and Technical Analysis
- Question 6—Trend vs. Counter-Trend Trading
- Question 7—Systematic vs. Discretionary Trading
- Question 8—Technical Toolbox
- Question 9—Trading Psychology
- Question 10—Trading Discipline
- Question 11—Dealing with Losses
- Question 12—Overtrading
- Question 13—The 2% Rule
- Question 14—Modifying the 2% Rule
- Question 15—The 6% Rule
- Question 16—The Top Two Goals for Every Trade
- Question 17—Learning from Experience
- Question 18—A Record-Keeping Spreadsheet
- Question 19—Trading Mistakes
- Question 20—Trader’s Diary
- Question 21—Diary Entry
- Question 22—Trading Plan vs. Diary
- Question 23—The Monitoring Screen
- Question 24—Comments on the Screen
- Question 25—Pinning a Chart to a Wall
- Question 26—Sources of Trading Ideas
- Question 27—Grading Buys and Sells
- Question 28—Grading Completed Trades
- Question 29—Buying
- Question 30—Value
- Question 31—A Trade Diary
- Question 32—Grading a Trade
- Question 33—Value Buying vs. Momentum Buying
-
ANSWERS TO QUESTIONS - PART ONE: PSYCHOLOGY, RISK MANAGEMENT, & RECORD-KEEPING
- Question 1—The Stress of Holding a Position
- Question 2—Your Trading Edge
- Question 3—The Three Great Divides
- Question 4—Price and Value
- Question 5—Fundamental and Technical Analysis
- Question 6—Trend vs. Counter-Trend Trading
- Question 7—System vs. Discretionary Trading
- Question 8—Technical Toolbox
- Question 9—Trading Psychology
- Question 10—Trading Discipline
- Question 11—Dealing with Losses
- Question 12—Overtrading
- Question 13—The 2% Rule
- Question 14—Modifying the 2% Rule
- Question 15—The 6% Rule
- Question 16—The Top Two Goals for Every Trade
- Question 17—Learning from Experience
- Question 18—A Record-Keeping Spreadsheet
- Question 19—Trading Mistakes
- Question 20—Trader’s Diary
- Question 21—Diary Entry
- Question 22—Trading Plan vs. Diary
- Question 23—The Monitoring Screen
- Question 24—Comments on the Screen
- Question 25—Pinning a Chart to a Wall
- Question 26—Sources of Trading Ideas
- Question 27—Grading Buys and Sells
- Question 28—Grading Completed Trades
- Question 29—Buying
- Question 30—Value
- Question 31—A Trade Diary
- Question 32—Grading a Trade
- Question 33—Value Buying vs. Momentum Buying
- GRADING YOUR ANSWERS
-
PART TWO - HOW TO SELL
- THE THREE TYPES OF SELLING
- CHAPTER 4 - SELLING AT A TARGET
- CHAPTER 5 - SELLING ON A STOP
- CHAPTER 6 - SELLING “ENGINE NOISE”
-
PART TWO QUESTIONS - HOW TO SELL
- Question 34—A Plan for Selling
- Question 35—The Three Types of Selling
- Question 36—Planning to Sell
- Question 37—Targets for Selling
- Question 38—A Stock Below Its Moving Average
- Question 39—Moving Averages as Selling Targets
- Question 40—Regrets About Selling
- Question 41—EMA as a Profit Target
- Question 42—Channels as Price Targets
- Question 43—Measuring Performance Using Channels
- Question 44—Selling Targets
- Question 45—Reaching for More
- Question 46—The Top of a Rally
- Question 47—Prices above the Upper Channel Line
- Question 48—Profit Targets
- Question 49—Support and Resistance Zones
- Question 50—A Protective Stop
- Question 51—Breaking through Resistance
- Question 52—A Trade without a Stop
- Question 53—Changing Stops
- Question 54—Re-entering a Trade
- Question 55—Deciding Where to Set a Stop
- Question 56—The Impact of the Last Trade
- Question 57—“The Iron Triangle”
- Question 58—A Limit Order
- Question 59—Soft Stops
- Question 60—A Stop One Tick below the Latest Low
- Question 61—A Stop at the Level of the Previous Low
- Question 62—A Stop That Is “Tighter by a Day”
- Question 63—Trade Duration
- Question 64—Wider Stops
- Question 65—Moving Stops
- Question 66—The SafeZone Stop
- Question 67—Trading with the SafeZone
- Question 68—The Volatility-Drop Method
- Question 69—“Engine Noise” in the Markets
- Question 70—Selling “Engine Noise”
- Question 71—New High-New Low Index
- Question 72—Not Liking Market’s Action
- Question 73—Earnings Reports
- Question 74—The Market “Rings a Bell”
- Question 75—Trading with the New High-New Low Index
- Question 76—A Decision-Making Tree vs. a Trading System
- Question 77—A Decision-Making Tree
- Question 78—Value Buying and Selling Targets
- Question 79—Support, Resistance, and Targets
- Question 80—Multiple Targets
- Question 81—Holding, Adding, or Profit-Taking
- Question 82—Handling a Profitable Trade
- Question 83—Placing a Stop
- Question 84—The Impulse System
- Question 85—The Signals of NH-NL
- Question 86—The Decision at the Right Edge of the Chart
-
ANSWERS TO QUESTIONS - PART TWO: HOW TO SELL
- Question 34—A Plan for Selling
- Question 35—The Three Types of Selling
- Question 36—Planning to Sell
- Question 37—Targets for Selling
- Question 38—A Stock Below Its Moving Average
- Question 39—Moving Averages as Selling Targets
- Question 40—Regrets About Selling
- Question 41—EMA as a Profit Target
- Question 42—Channels as Price Targets
- Question 43—Measuring Performance Using Channels
- Question 44—Selling Targets
- Question 45—Reaching for More
- Question 46—The Top of a Rally
- Question 47—Prices above the Upper Channel Line
- Question 48—Profit Targets
- Question 49—Support and Resistance Zones
- Question 50—A Protective Stop
- Question 51—Breaking through Resistance
- Question 52—A Trade without a Stop
- Question 53—Changing Stops
- Question 54—Re-entering a Trade
- Question 55—Deciding Where to Set a Stop
- Question 56—The Impact of the Last Trade
- Question 57—“The Iron Triangle”
- Question 58—A Limit Order
- Question 59—Soft Stops
- Question 60—A Stop One Tick below the Latest Low
- Question 61—A Stop at the Level of the Previous Low
- Question 62—A Stop That Is “Tighter by a Day”
- Question 63—Trade Duration
- Question 64—Wider Stops
- Question 65—Moving Stops
- Question 66—The SafeZone Stop
- Question 67—Trading with the SafeZone
- Question 68—The Volatility-Drop Method
- Question 69—“Engine Noise” in the Markets
- Question 70—Selling “Engine Noise”
- Question 71—New High-New Low Index
- Question 72—Not Liking Market’s Action
- Question 73—Earnings Reports
- Question 74—The Market “Rings a Bell”
- Question 75—Trading with the New High-New Low Index
- Question 76—A Decision-Making Tree vs. a Trading System
- Question 77—A Decision-Making Tree
- Question 78—Value Buying and Selling Targets
- Question 79—Support, Resistance, and Targets
- Question 80—Multiple Targets
- Question 81—Holding, Adding, or Profit-Taking
- Question 82—Handling a Profitable Trade
- Question 83—Placing a Stop
- Question 84—The Impulse System
- Question 85—The Signals of NH-NL
- Question 86—The Decision at the Right Edge of the Chart
- GRADING YOUR ANSWERS
-
PART THREE - HOW TO SELL SHORT
- CHAPTER 7 - SHORTING STOCKS
- CHAPTER 8 - SHORTING NON-EQUITY INSTRUMENTS
-
PART THREE QUESTIONS - HOW TO SELL SHORT
- Question 87—Shorting a Stock
- Question 88—Risk Factors in Shorting
- Question 89—The Impact of Shorting
- Question 90—Short vs. Long
- Question 91—Disadvantages of Shorting
- Question 92—Learning to Sell Short
- Question 93—Shorting vs. Buying
- Question 94—Shorting Stock Market Tops
- Question 95—Shorting in Downtrends
- Question 96—The Tactics of Shorting Downtrends
- Question 97—Shorting the Fundamentals
- Question 98—Looking for Shorting Candidates
- Question 99—The Short Interest Ratio
- Question 100—Trading the Short Interest Ratio
- Question 101—Markets Need Shorting
- Question 102—Who Shorts Futures
- Question 103—Shorting Futures
- Question 104—Long Rallies and Sharp Breaks
- Question 105—Writing Options
- Question 106—Writing Covered Options
- Question 107—Naked vs. Covered Writing
- Question 108—The Demands of Naked Writing
- Question 109—Brokers Against Traders
- Question 110—Forex Market
- Question 111—Learning to Become a Better Trader
- Question 112—Trading Signals of the Force Index
- Question 113—False Breakouts and Divergences
- Question 114—Shorting and Covering Signals
- Question 115—Shorting Tactics
-
ANSWERS TO QUESTIONS - PART THREE: HOW TO SELL SHORT
- Question 87—Shorting a Stock
- Question 88—Risk Factors in Shorting
- Question 89—The Impact of Shorting
- Question 90—Short vs. Long
- Question 91—Disadvantages of Shorting
- Question 92—Learning to Sell Short
- Question 93—Shorting vs. Buying
- Question 94—Shorting Stock Market Tops
- Question 95—Shorting in Downtrends
- Question 96—The Tactics of Shorting Downtrends
- Question 97—Shorting the Fundamentals
- Question 98—Looking for Shorting Candidates
- Question 99—The Short Interest Ratio
- Question 100—Trading the Short Interest Ratio
- Question 101—Markets Need Shorting
- Question 102—Who Shorts Futures
- Question 103—Shorting Futures
- Question 104—Long Rallies and Sharp Breaks
- Question 105—Writing Options
- Question 106—Writing Covered Options
- Question 107—Naked vs. Covered Writing
- Question 108—The Demands of Naked Writing
- Question 109—Brokers Against Traders
- Question 110—Forex Market
- Question 111—Learning to Become a Better Trader
- Question 112—Trading Signals of the Force Index
- Question 113—False Breakouts and Divergences
- Question 114—Shorting and Covering Signals
- Question 115—Shorting Tactics
- GRADING YOUR ANSWERS
-
PART FOUR - LESSONS OF THE BEAR MARKET
-
CHAPTER 9 - BEARS MAKE MONEY
- THE BEAR WAS BEGINNING TO STIR IN ITS CAVE
- THE SENTIMENT INDICATORS ARE EARLY
- THE TOP OF THE BULL MARKET
- BEARISH DIVERGENCES AT THE 2007 TOP
- THE BUBBLE POPS: MGM
- SHORTING A HIGH-FLYER
- A BEAR MARKET IS A DESTROYER OF VALUE
- SWINGING IN AND OUT OF A MAJOR DOWNTREND
- TRADING IN A DOWNCHANNEL
- PREPARED FOR A SURPRISE
- “BULL MARKETS HAVE NO RESISTANCE AND BEAR MARKETS HAVE NO SUPPORT”
- FOR WHOM THE BELL TOLLS OR THE HOUND BARKS TWICE
- MR. BUFFETT BUYS TOO SOON
- MAY I POUR SOME GASOLINE ON YOUR FIRE?
- KEEP SHORTING ON THE WAY DOWN
- CHAPTER 10 - GROPING FOR A BOTTOM
-
CHAPTER 9 - BEARS MAKE MONEY
- CONCLUSION
- REFERENCES
- Acknowledgments
- ABOUT THE AUTHOR
Product information
- Title: The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition
- Author(s):
- Release date: March 2011
- Publisher(s): Wiley
- ISBN: 9780470632390
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