"No law can protect a man from his own errors. The main reason why money is lost in stock speculations
is not because Wall Street is dishonest, but because so many people persist in thinking that you can make
money without working for it and that the stock exchange is the place were this miracle
can be performed." -- Bernard Baruch
The Art of Short-Selling
indirectly explains why short-selling is not for the amateur investor.
Because of point (2), this book's thirteenth chapter is on investment research. If you're interested in
investing, this is a great summary of the various documents and techniques of stock research, and has
three recommendations for further reading which I'll follow:
- Professionals earn interest on the short transaction cash (page 226).
- Professionals have the time to conduct the research.
I'll also be reading Grant's Bernard
- Financial Statement Analysis
- Abraham Briloff
- Quality of Earnings