Good Read

"Sell Short" by Michael Shulman is a great way to get into shorting the markets. With all this fear running around it's important to understand that you don't want to get caught overexposing yourself to the long side, and this book explains in great detail to either the newer trader or the experienced a different approach of selling short.




Shulman is convinced that options are a much better way to make income in the "dark side" of trading, as he calls it. His strategy is basic fundamentals accompanied by technicals and other non-complicated, common knowledge, and in some cases some very light quantitative analysis (which he uses through surveys of businesses).

Shulman uses options as a way to bank coin from overvalued or in danger stocks. As everyone pretty knows, stock prices (many times) drop MUCH more rapidly on bad news than they go up on good news, simply because of human fear. His explanations of things steer away from complicated jargon that may confuse new investors and works great if this is your first look into trying to get short. He also has a chapter on selling short without buying puts, etc. for the investor not looking to use options.

Whether or not you choose to profit from getting short, or if for some reason you ACTUALLY still "buy and hold", this book can be a great read as a way to diversify your ways of hedging your bets long.

Check it out, definitely worth a read. Recommend buying, but for you cheap pikers, here is a free copy: Sell Short by Michael Shulman