Bearing or short selling technique. Tom Tolley
Most novice investors associate stock trading with the “ buy and hold ” strategy.
In the process of implementation, you just need to purchase securities and wait until they rise in price in order to sell them at a higher price.
Sales transactions are puzzling at first, because how can you sell something you don’t have, so they are much less often used by beginners.
Although there are a lot of strategies that use short positions to make money, they are no less effective than strategies based on opening buy orders.
The book written by Tom Tolley, “Belling or Short Selling Techniques, Rules of the Game for Financial Top Managers,” is dedicated to short selling transactions.
If you trade on the foreign exchange market, then books about working on Forex will be more suitable for you; they are located on the second page of the section - “Forex Books”.
The information presented in the book allows you to learn how to find shares of companies that may soon fall in price, and therefore are suitable for short trading.
Key points:
1. Short selling, a look into history - examples of traders who successfully make money on this strategy, hedge funds that play short and the rules governing this type of trading.
2. Implementation of short sales - what is the essence of sales transactions, marginal accounts and collateral for transactions.
3. What will your stock broker say about short sales - technical aspects of carrying out such types of transactions.
4. An alternative to short selling, futures and options - how to use these types of transactions when trading securities.
5. Accounting rules and financial reports - where you can find reports on the company’s activities and how to correctly calculate its real value.
6. Profit and loss statements - forecasting the investment attractiveness of the company's shares.
7. Technical analysis – as a filter for data obtained based on fundamental indicators.
8. Taxation strategy – taxation of capital gains from short sales, dividends.
An interesting book for those who want to try their hand at the stock market and plan to engage in bearish trading.
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