Short Selling: The Bear Game by Tom Tolley

Most beginning investors associate stock trading with the " buy and hold " strategy.

This strategy simply involves buying securities and waiting for them to rise in price before selling them at a higher price.

Short trades are initially perplexing, as it's difficult to sell something you don't own, so they're much less common among beginners.

However, there are numerous strategies that utilize short positions to generate profits, and they're no less effective than strategies based on buying orders.

Tom Tolley's book, "The Short Seller: The Short Seller Game," is dedicated specifically to short trades.

If you trade on the foreign exchange market, then books on working on Forex are more suitable for you; they are located on the second page of the section - "Forex Books".

Its value lies in the fact that it not only reveals the essence of this method, but also explains how to implement it using specific historical examples.  

The information presented in this book allows you to learn how to identify shares of companies that are likely to fall in price soon, and therefore are suitable for bearish trading.

Key points:

1. Short selling: a historical overview – examples of traders successfully profiting from this strategy, hedge funds playing bearish, and the rules governing this type of trading.

2. Short selling - what short sales are, margin accounts, and collateral.

3. What your stockbroker says about short selling – the technical aspects of carrying out these types of transactions.

4. Alternative to short selling, futures and options – how to use these types of transactions when trading securities.

5. Accounting rules and financial statements - where to find reports on a company's activities and how to correctly calculate its real value.

6. Income statements – forecasting the investment attractiveness of a company’s shares.

7.    Technical analysis – as a filter for data obtained on the basis of fundamental indicators.

8. Tax 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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