Short Selling

The Fine Art of Short Selling… and the Secrets to Fast Profits in a Falling Market

An Investment U White Paper Report 

Almost any investment technique will work well in a bull market – but they collapse when the markets turn treacherous… like they have recently.

But the past two years have been outlandishly profitable for investors who used the short selling technique. This report will provide the education needed to learn how to safely make 40%, 50%, even 60% profits in a matter of a few weeks – and in some instances a few days.

Please note: This does NOT involve the use of options, futures or any other kind of risky derivative!

The short selling strategy is one part "contrarian investing," one part "short-term profiteering," and one part "capitalizing on the biggest financial conspiracy since the breakup of Standard Oil nearly a century ago."

It is a radically different approach to investing… one that can earn big short-term profits using a simple technique.

Why Wall Street Won't Tell You To Sell

Wall Street almost never tells clients to sell specific stocks. At best, they will write a mildly positive-to-ambivalent research report that will leave the average investor in a state of inertia (which means the stock remains unsold). In rare cases, when the outlook for the company is particularly bad they might say they are "neutral" on the stock. Or they use the term "reduce."

Even if the company's outlook is atrocious, Wall Street firms don't want to step out front and say, "Sell this stock." Because if they do, that's one company that definitely won't use their investment banking services. And who needs the advice and services of an investment bank more than a struggling, downtrodden company?

Bottom Line: When you need to know which stocks are troubled and headed down, Wall Street is mute. Like we said before, it's a silent conspiracy. And the people they're conspiring against are you and every other investor out there. Here's what they don't want you to know…

Short Selling: The Secret to Fast Profits

Stocks go down faster than they go up. A lot faster. For example, it took the Nasdaq from July, 1996 until March, 2000 for the market to peak, but less than 12 months for it to drop to where it started. And I shouldn't have to remind you quickly stocks plummeted more recently.

History shows that stocks throughout the 20th century rose just over 11% a year. Yet individual stocks routinely tumble by that much or more in a single day.Why wait years for an 11% profit if you can earn these kinds of returns in a matter of days when a stock sells off?

And you can. Imagine earning an immediate 54%, for instance, when a stock gets sacked at the opening bell. It would take five years of average stock market returns to get that kind of performance. Yet you can profit from plummeting stocks… simply… easily… safely… and effectively.

Unfortunately, too many investors are mystified when it comes to the investing technique called "short selling." But there is nothing complicated or difficult about it. Short selling is simply acting to capitalize on falling share prices.

And there are plenty of opportunities for short sellers… even in the hardiest bull markets.

Several Good Reasons to Start Selling Short

Short selling is a tool that can be valuable in a number of ways.

For instance, you may want to speculate that a stock is likely to decline. There could be any number of reasons. You may feel that its sales have topped out, that earnings will fall short of expectations, that the company has too much debt or too many successful competitors, that its industry is in a slump, or simply that the shares are overpriced. Short selling allows you to take advantage of these situations without resorting to using options or other derivatives.

While options can give you leverage that a short sale cannot, they have one very serious drawback: their time premium. That means when you buy a put option, unless the stock falls fairly substantially and within the relatively short time period defined by the premium, you may miss out on the profit if the stock falls after the expiration of your option.
 

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