Tools of the Bear

Whether the Dow Jones Industrial Average is on the rise or is falling, there inevitably will be extended bear markets that will give the short seller and put buyer substantial opportunities for rich profits. Tools of the Bear: How Any Investor Can Make Money When Stocks Go Down shows investors how to make money when stocks are declining in price, without taking undue risk. Unlike other investment books, Tools of the Bear makes no attempt to show all the ways to play the market; it concentrates, instead, on three proven strategies: selling stocks short, buying puts and selling calls. The goal of this text is to educate readers in the major tools used by speculators who know how to make money when the stock market is heading south.Working examples and explanations make this a clear and concise volume, leaving no misconceptions. Designed for the investor who understands the basics of investing and is looking for a more sophisticated edge, Tools of the Bear explains how to implement these sometimes complicated and intricate strategies. The well-organized chapters illustrate some fundamental concepts by answering the following questions:- Is it true that only stocks on the major exchanges can be sold short?- Are stocks with high P/E ratios good candidates for short selling?- Is low trading volume in a stock an indication the stock will go down?- Are in-the-money options always the best bet?- Must you either be a buyer or a seller of a put or call?A text on the important rules, tools and arithmetic of playing for profit, this impressive volume offers alternate strategies for the small-money independent investor reluctant to tie up large amounts of cash for extended periods of time. If you attempt to play all the games of the stock market, no recent book specifically covers shortselling, puts and calls as simply and as thoroughly as Tools of the Bear!