Find a method to evaluate stocks - and build a record of impressive returns
Short Selling for the Long Term describes the methods used by Joseph Parnes, President of Technomart, to obtain consistent returns in the stock market. Most investors fail to exceed the returns represented by the Standard and Poor’s Stock Index, but Parnes often does using his investment philosophy. This book outlines his method of stock assessment, providing an understandable formula. If the formula tells a reader to buy a stock, then, as explained, there is a significant chance that stock will go up. If the formula tells a reader to short a stock, then the book shows how there is a significant chance that the stock will go down.
Parnes advocates the use of short selling as a long-term strategy in combination with long positions, so advisors and individual investors alike can profit in both rising and falling markets. While most investing books focus on how to make money over the long term in a rising markets, Parnes's focus on short selling as a way of capturing volatility sets this book apart from the crowd. He offers insights into the difference between option trading and shorting which make his system useful in both type of markets.
• Profit in a bear market
• Borrow the stock you want to bet against
• Sell borrowed shares
• Learn the secrets of long-term short selling strategy
• Buy shares back and close by delivering at the new, lower price
Short Selling for the Long Term is essential reading for investment advisors, fund managers, and individual investors.
Table of Contents
Preface ix
Chapter 1 Investment Philosophy 1
Chapter 2 The Bank of England Lecture 9
Chapter 3 Portfolio Management - General Principles 19
Chapter 4 Explanation of the Use of the 50-Day Moving Average and 200-Day Moving Average 31
Chapter 5 The Theory Behind the “Parnes Parameters”: Using Pattern Recognition, Retrospective Analysis, and Bayesian Analytics 43
Chapter 6 Variables to Consider for the Parnes Parameters 63
Chapter 7 Shorting for the Long Term 81
Chapter 8 A Case Study for a Stock I Shorted for the Long Term - Chipotle 107
Chapter 9 Case Studies for Integrating Shorts for the Long Term with Longs 121
Chapter 10 Modern Trader Charts 159
Glossary 215
Index 227
