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Description of The New Sell and Sell Short

THE NEW SELL & SELL SHORT EXPANDED SECOND EDITION

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.

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.

"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."
—John J. Murphy, author of Technical Analysis of the Financial Markets

"The New Sell & Sell Short 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."
—David Weis, trader and author of Trades about to Happen

"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. The New Sell & Sell Short should be required reading for any serious trader or investor."
—Ed Dobson, founder of Traders Press Inc. and a private, full–time trader

Title Information

ISBN:

9780470632390

Pages:

368 pages

Format:

Paperback

Product Code:

489699

Publisher:

John Wiley & Sons Ltd

Published:

05/04/2011

Edition:

2nd Edition

Press and Industry Reviews

"Elder clearly shows how to take profits on winning trades or cut losing trades. He skillfully combines 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."
- John J. Murphy , author of Technical Analysis of the Financial Markets

"The New Sell & Sell Short 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."
- David Weis, trader and author of Trades about to Happen



"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 most valuable 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. The New Sell & Sell Short should be required reading for any serious trader or investor."
- Ed Dobson , founder of Traders Press Inc. and a private, full-time trader

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About Alexander Elder

DR. Alexander Elder 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, Trading for a Living (translated into more than a dozen languages), Come Into My Trading Room (2002 Barron′s Book of the Year), and Entries and Exits (2007 SFO Magazine Book of the Year).

Contents of The New Sell and Sell Short

Introduction
WHY SELL?
ABOUT THE Q&A

PART ONE: PSYCHOLOGY, RISK MANAGEMENT, & RECORD-KEEPING

1. On Buying
THE THREE GREAT DIVIDES
ONE TRADER'S TOOLBOX

2. Trading Psychology and Risk Management
YOUR MIND AS A TRADING TOOL
RISK CONTROL

3. On Keeping Records
GOOD RECORDS LEAD TO GOOD TRADING
TRADER'S SPREADSHEET - BASIC ACCOUNTABILITY
TRADING DIARY - YOUR KEY TO LASTING SUCCESS
HOW TO DOCUMENT YOUR TRADING PLAN
MARGRET'S METHOD - PUT IT ON THE WALL
HOW TO GRADE YOUR PERFORMANCE
TWO TYPES OF TRADING. QUESTIONS
ANSWERS

PART TWO: HOW TO SELL

4. Selling at a Target
SELLING AT A MOVING AVERAGE
SELLING AT ENVELOPES OR CHANNELS
SELLING AT RESISTANCE LEVELS

5. Selling on a Stop
THE IRON TRIANGLE
MARKET OR LIMIT ORDERS
HARD AND SOFT STOPS
A BAD PLACE
REDUCING SLIPPAGE - TIGHTER BY A PENNY
NIC'S STOP - TIGHTER BY A DAY
WHEN TO USE WIDER STOPS. MOVING STOPS
A SAFEZONE STOP
VOLATILITY - DROP TRAILING STOPS

6. Selling "Engine Noise"
WEAKENING MOMENTUM
AN "ENGINE NOISE" EXIT FROM A SHORT-TERM TRADE
A DISCRETIONARY EXIT FROM A LONG-TERM TRADE
SELLING BEFORE EARNINGS REPORTS
THE MARKET RINGS A BELL
TRADING WITH THE NEW HIGH-NEW LOW INDEX
THE DECISION TREE FOR SELLING
QUESTIONS
ANSWERS

PART THREE: HOW TO SELL SHORT

7. Shorting Stocks
YOUR FIRST SHORTS
THE ASYMMETRY OF TOPS AND BOTTOMS
SHORTING TOPS
SHORTING DOWNTRENDS
SHORTING FUNDAMENTALS
FINDING STOCKS TO SHORT
SHORT INTEREST

8. Shorting Non-Equity Instruments
SHORTING FUTURES
WRITING OPTIONS
FOREX
QUESTIONS
ANSWERS

PART FOUR: LESSONS OF THE BEAR MARKET

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 DIVERGENCE 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 SURPRIS
"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

10. Groping for a Bottom
THIS STOCK MARKET IS NOT GOING DOWN TO ZERO
A "DOUBLE HELIX"GIVES A BUY SIGNAL
JUST IN TIME FOR THE PARTY
MY FAVORITE MAJOR BOTTOM SIGNAL
SELLING A BULL
EVERY BULL STUMBLES
A SCREAMING SHORT

Conclusion
HANDLING PROFITS - THE PERSONAL DIVIDEND
THE ROAD INTO THE FUTURE

References
Acknowledgments
About the Author