Sell and Sell Short

Exiting positions in order to cut losses and maximize profits is an essential part of the trading process. Typically, traders put much more thought into entering the markets than they do on exiting them. As a result, traders frequently make emotional decisions, which can result in bigger losses and smaller profits than if they had a disciplined exit strategy. While a vast majority of trading and investing literature focuses on buying the right stocks, there is a glaring gap at the other end of the spectrum: when and how to sell them. In Sell and Sell Short, Dr. Alexander Elder—a professional trader, teacher of traders, and practicing psychiatrist—addresses this issue in detail and provides practical, moneymaking strategies that can be effectively implemented when exiting a trade. This comprehensive guide discusses the selling process from a variety of angles: technical, fundamental, and psychological. It explains how to maximize winnings in a profitable trade and how to minimize losses when a trade doesn’t go as planned. It also explores how to profit in a falling market by shorting stocks, futures, and options.