5 Rules for Making Big Profits Shorting Stocks
Michael Shulman, July 29, 2009
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5 Rules for Making Big Profits Shorting Stocks
Not only is it possible to make big bucks on falling stocks, but savvy short-side investors do it all of the time. Whether you're shorting stocks the traditional way or doing it the smart way (more on that in just a minute), choosing a name to play to the downside should be just as well thought out as any long-side play that you add to your portfolio.
But how do you go about finding spectacular short-side plays and, more importantly, profiting from them? I have five solid rules that shed some light on how to survive and thrive when shorting stocks.
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What are the five rules for constructing great short-side positions? Read on to find out.
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