The Good and Bad of Short Selling
The good....you can make piles of money!
The bad...it destabilizes, leads to panic and investors get hurt!
If you play the stocks one way...then you would have died a thousand deaths already, but those who short the market would have made an absolute killing during the finacial turmoil we are seeing currently.
I'm a believer that the whole financial system could collapse and in turn could seriously wreck ordinary people's lives. This sort of destruction means people lose not only their jobs, but their ability to survive - thus we create a new depression.
Not good for pesky traders either! Especially if banks fail left, right and center.
I'm not the only one who is concerned and we all should be.
"Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling.....
The Commission’s actions were as follows:
Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so."
Read more...
This would have to be the easiest way to trade...Auto-Pilot Forex Trading
The bad...it destabilizes, leads to panic and investors get hurt!
If you play the stocks one way...then you would have died a thousand deaths already, but those who short the market would have made an absolute killing during the finacial turmoil we are seeing currently.
I'm a believer that the whole financial system could collapse and in turn could seriously wreck ordinary people's lives. This sort of destruction means people lose not only their jobs, but their ability to survive - thus we create a new depression.
Not good for pesky traders either! Especially if banks fail left, right and center.
I'm not the only one who is concerned and we all should be.
"Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling.....
The Commission’s actions were as follows:
Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so."
Read more...
This would have to be the easiest way to trade...Auto-Pilot Forex Trading
posted by Learning Coach | 5:59 PM
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