Short-Selling with the O'Neil Disciples

Leave the old paradigm behind and start safeguarding your portfolio Short Selling with the O'Neil Disciples is a guide to optimizing investment performance by employing the unique strategies put forth by William O'Neil. The authors traded these strategies with real money, then refined them to reflect changing markets and conditions to arrive at a globally-relevant short-selling strategy that helps investors realize maximum profit. Readers will learn how short selling recognizes the life-cycle paradigm arising from an economic system that thrives on 'creative destruction,' and has been mischaracterized as an evil enterprise when it is simply a single component in smart investing and money management. This informative guide describes the crucial methods that preserve gains and offset declines in other stocks that make up a portfolio with more of an intermediate- to long-term investment horizon, and how to profit outright when markets begin to decline. Short-selling is the act of identifying a change of trend in a stock from up to down, and seeking to profit from that change by riding the stock to the downside by selling the stock while not actually owning it, with the idea of buying the stock back later at a lower price. This book describes the methods that make short-selling work in today's markets, with expert advice for optimal practice. Learn the six basic rues of short-selling Find opportunities on both the long and short sides of stocks Practice refined methods that make short-selling smarter Examine case studies that profitably embody these practices Investors able to climb out of the pessimistic, conspiratorial frame of mind that fixates on the negative will find that short selling can serve as a practical safeguard that will protect the rest of their portfolio. With clear guidance toward the techniques relevant in today's markets, Short Selling with the O'Neil Disciples is an essential read.

Preface ix Acknowledgments xiii Chapter 1 Introduction to Short-Selling 1 Chapter 2 Short-Selling Essentials 15 Chapter 3 Short-Selling Set-Ups: Chart Patterns for the Dark Side 51 Chapter 4 In and Out: The Mechanics of Short-Selling 75 Chapter 5 Case Study #1: Apple (AAPL) in 2012–2013 123 Chapter 6 Case Study #2: Netflix (NFLX) in 2011 137 Chapter 7 Case Study #3: Keurig Green Mountain (GMCR) in 2011 145 Chapter 8 Case Study #4: 3D Systems (DDD) in 2014 153 Chapter 9 Case Study #5: Molycorp (MCP) in 2011 163 Chapter 10 Templates of Doom: A Short-Selling Model Book 175 About the Authors 301 Index 303