How to Make Money Selling Stocks Short is a masterclass in one of the least understood yet potentially most profitable trading strategies—short selling. Written by investing legend William J. O’Neil, founder of Investor’s Business Daily, and top trader Gil Morales, this book reveals the principles, timing techniques, and trade management skills needed to profit from declining stocks and bear market trends.
Unlike most investment books that focus solely on buying opportunities, this guide shows you how to identify when a stock has topped, recognize early signs of weakness, and execute short trades with precision. O’Neil and Morales leverage the proven CAN SLIM® methodology, adapting it for the short side of the market. They break down historical market examples, complete with annotated charts, to demonstrate exactly how past winners turned into prime short candidates.
Readers will learn how to:
- Spot topping patterns before major declines.
- Time short entries for maximum profit potential.
- Use market indexes to confirm bearish setups.
- Manage risk and cover positions strategically.
Packed with real-world case studies from different market cycles, this book provides both the theory and practice to make short selling a valuable part of any trader’s arsenal. Whether you’re navigating a bear market or simply looking to diversify your trading strategies, How to Make Money Selling Stocks Short equips you with the tools to profit in any market environment.
✅ What You’ll Learn:
- How to identify and trade short-selling opportunities.
- Chart patterns and technical signals that precede declines.
- Risk management strategies specific to short trades.
- Using market context to improve short-selling accuracy.
- Historical examples and lessons from past market cycles.
💡 Key Benefits:
- Learn from two market veterans with decades of trading success.
- Apply a proven methodology to short selling.
- Enhance your portfolio’s performance in bear markets.
- Gain confidence trading both sides of the market.
👤 Who This Book Is For:
- Active traders seeking to add short selling to their strategies.
- Technical analysts wanting to recognize topping patterns.
- Investors preparing for or navigating bear markets.
- Anyone seeking to diversify profit opportunities.
📚 Table of Contents:
- Introduction to Short Selling
- Understanding Market Tops
- Key Technical Patterns for Shorting
- Timing Your Entry
- Managing the Short Position
- The Role of Market Indexes
- Risk Control and Position Sizing
- Historical Case Studies
- Short Selling in Different Market Environments
- Final Thoughts and Strategies for Success