I'm interested in seeing what people come out with.
Do stories involving no real supernatural elements, but which elicit a lot of fear in the reader, count?
I haven't read that many Horror novels either way. I've had a few books of short horror stories, some of which have been good, but a short story is always, well, short. It'd be nice (well, maybe kinda scary) to read some full stories, heh.
Well, short stories are generally where it's at in horror. Horror is mostly about a crazy idea / bizarre occurrence, and that works better in short fiction. For longer fiction you need fleshed out characters and a longer plot, that often doesn't work so well and/or takes away from the horror and becomes something else. King's The Shining is as much about a family destroyed by alcoholism as it is about a haunted hotel. Lovecraft couldn't really write characters well, but he didn't have to, because they were all just devices in his short stories.
Also supernatural elements are not really necessary. You can do a great horror story about a simple murder, psychological horror, stuff like that. What I like about horror has more to do with evocative writing and atmosphere I think than with suspense and shock. I don't like it when supernatural phenomena are explained in too much detail, like King occasionally does. I'm not really interested in graphic body horror or gory stuff, I rather like bizarre writings about madness, the unknown and incomprehensible.
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Also I agree with the assessment of King, some of his short stories are pretty good and they're all well crafted, didn't like the Dark Tower that much, none of his writing is scary, but then nothing really is.