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
I am glad that Dr. Elder took the time to update and publish this book in a new edition. He saw the warning signs of the 2007 bull market coming to an end and had the foresight to write a book about the importance of timing exits and the value of shorting stocks when the time was right. It appears that the author is also as good with his entries and exits in publishing as he is in trading. He could not have given the trading community a better book at a better time when it was first published in May 2008.
If you are searching around on Amazon for a book on trading stocks then look no further, you have found one of the best ones on the market. I have actively traded successfully for over 12 years and read over 160 trading books, this stands out as one of the best. The book is a complete book on trading, it does not skip over any of the most important areas a trader will need for long time success in the markets.
1. The trader must have a trading plan, even discretionary traders.
2. The trader must keep good records to understand his mistakes and successes.
3. A trader should not trade so big that it causes excessive stress and bad judgment.
4. A good rule is to cut every loss to a maximum of 2% or less to limit the risk of ruin.
5. Trading with discipline will put you ahead of the majority of traders.
6. Your trading must fit your own personality and risk tolerance.
7. If you use fundamental ideas for a trade cross check it with the technicals of the chart.
8. Stock option buyers are net losers in the market.
9. Traders can not give up on a stock because they are stopped out, successful traders keep trading the stock until they catch the winning trades.
10. False breakouts and rallies off support are two of the best trading opportunities.
The trading style of the book's author is to trade with a fast and slow exponential moving averages (13,26), along with envelopes. He explains how to use short term swing trades using the MACD and force index to trade when a stock is technically above or below its value zone. The style is not to catch huge trends, it is just to have winning high probability trades by catching half or more of the stocks average range. This is the way professionals trade in a normal market environment. Risk management using stops will protect you from any trend that does take off and falls outside the normal range.
While as the title suggests it teaches when to sell your stocks for profits, and also does the best job I have seen of explaining short selling and when technical indicators show to short. This book is a complete book for any trader. The main lessons of this book is when to lock in profits and exit a trade using a target, and how to double your potential for profits by not only buying stocks but also selling stocks short and buying them back at a lower price for profit.
Professionals sell short because while overall the stock market drifts upward, when a stock falls it falls over twice as fast as it rises. I sell short and it is a powerful tool when used correctly. This book will show you when it is appropriate to short.
Dr. Alexander Elder is the only author I am aware of that integrates trading psychology, money management,technical analysis, and record keeping into one book. These four factors will determine whether you are successful in the market or not, even more than the trading method you choose.
If you are going to be a trader you must follow the money management suggestions in this book. NEVER risk more than 2% of your total equity on a trade, If you follow the 2% rule from the book, it will save you from learning this major life lesson the hard way and save you from huge equity draw downs.
Your long term success as a trader is determined by your ability to learn from your mistakes and not repeat them. The best way to do this is to keep detailed records on a spreadsheet and charts of each trade and a diary of why you traded. You must look squarely at each loss and win. If you learn from each bad trade and limit your loss to less than 2%, it can turn into a long term positive.
This review only scratches the surface of this great book. It is packed with very helpful principles, real trades, humor, and is just outstanding. I really grew as a trader years ago from reading and implementing Dr. Elder's best selling classics "Come into my Trading Room" and "Trading for a Living". If your dream is to trade for a living some day or just trade successfully this is the book to buy.
I was also very glad that Dr. Elder added in trades from the bear market of 2008-2009. I found his explanation of his trades very interesting and informative. There were reviews of some charts from that time period that showed signals of the bottom and when it was time to quit selling and selling short and start buying again.
I have read Dr.Alexander Elder's every single trading book, few of them Re-read again and again.And trust me, this book is one of such rare breed of books. With his previous books, the message was so influential, that I joined "Spike Trade" for few months. You might have guessed, Yes, I am little biased,but this review is purely based on the quality of the book.
MIND IS NEVER COLOR BLIND:
Before I get into the content of the book, I wish every author who writes a book on stock market (with Charts) should realize color helps understand the message the author wants to convey. Tons of charts in the book alone are worth more than the price of the book. I have read several books on stock markets,but they all miss the visual appeal of descriptive charts. They have some black and white charts with few lines and no descriptions on the charts itself.
NEWBIES - AMATEURS - SEMIPROFESSIONALS:
First of all , this book should not be your starting point for Alexander Elder's books. For Newbies the suggested order...
1. Trading for a Living: Psychology, Trading Tactics, Money Management ( You will need to read it twice)
2. Start making journals and learn from your trading experiences
3. Come Into My Trading Room: A Complete Guide to Trading (Masterpiece...Read 4 or 5 times to absorb the spirit and content of the book.)
4. Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading) (Read once)
5. The New Sell and Sell Short (Wiley Trading) (Read couple of times)
7. Understand Metastock, Tradestation, esignal type tools.
8. Attend his seminar if you can afford.
LATE STAGE AMATEURS - EARLY STAGE SEMI PROFESSIONALS :
If you have read the above books and show fairly consistent equity curve , how will this book help? . It is a great refresher.
> How Confident are you identifying bullish or bearish Divergence?
> How often have they turned out to be correct?
> Do you still have spreadsheet and mental notes separately?
> Do you review them?
> What have you done to become a better trader?
> How many times have your stops been hit? Why?
> How many times did you get out late / Early .. Why?
> Do you compress the entire life of the charts to see how the stock is doing compared to it's historic averages?
Elder's books were the single largest reason for me not getting wiped out in the stock market. But this book brought me back to the reality that getting past amateur to semi professional is not an easy breeze.I have to be more honest with myself in making the notes, reading it and so on.
EXERCISES:
The exercises are boring; but so is serious trading . Please take time to do the exercises sincerely. Assuming you read the book and took the tests sincerely, you can skip the tests when you read it second or third time ( highly recommended)
GOLD STANDARDS:
The next few lines of this review , if you read and follow will have far more impact on your trading career than any individual book. For beginners/Semi Professionals/part time traders . Similar to "Driver License" being mandatory to Drive, I wish the following books below are mandatory requirements before anyone opens an online account. The books listed below are "gems" if you are not a "buy and hold" investor.
Alexander Elder focuses most of his attention on selling and shorting equity instruments, not on buying them. The author does not provide an in-depth examination of trading in futures, options, and forex. Elder explains to his audience mostly the ins and outs of short-term trade. However, readers do not have to be short-term traders to benefit from the book under review.
Elder firmly believes that successful trading results from the combination of what he calls the 3 Ms: Mind (i.e., trading psychology), Methods (i.e., indicators and tools), and Money (i.e., risk control). Elder emphasizes repeatedly the importance of keeping good records for each trade to become a successful trader. Clarity and discipline are the pillars on which successful trading rests. The author provides a template to be used for documentation purposes.
In his trading examples, Elder helps his audience interpret charts and leverage mostly his favorite indicators: moving averages, envelopes, also called channels, MACD, and the Force Index. Readers who have no prior familiarity with these indicators are advised to gather first information on this subject before going through Elder's guide to trading.
Elder gives his audience the opportunity to put theory into practice through a 100+ questions about 1) psychology, risk management, and record-keeping, 2) how to sell, and 3) how to sell short. Answering first the questions before turning to the answers section is key to testing one's knowledge about these topics.
Finally, Elders completes his examination of the new sell and sell short by reviewing the lessons to be drawn from the current bear market rally.
In summary, Elder gives his audience a great opportunity about how to learn to combine the 3 Ms mentioned above with success. The author reminds his audience repeatedly that only a minority of traders systematically make money in financial markets over time.
Product Details :
Paperback: 368 pages
Publisher: Wiley; 2 edition (March 29, 2011)
Language: English
ISBN-10: 0470632399
ISBN-13: 978-0470632390
Product Dimensions: 6.1 x 0.8 x 9 inches
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