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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?


To: TheStockStalker who wrote (16135)7/4/2002 8:26:27 PM
From: KymarFye  Read Replies (1) | Respond to of 18137
 
Thanks for the info... I'm surprised that the Brits would be so backward in this regard, and am only a little less surprised to read about limitations in the Asian markets.

It struck me as particularly of interest because I had noticed some renewed background burbling about prospective short-selling limitations in the US, though it might have just been recycled claptrap from the early post-9/11 period.



To: TheStockStalker who wrote (16135)7/4/2002 8:39:13 PM
From: KymarFye  Read Replies (3) | Respond to of 18137
 
"Short selling involves a greater degree of risk than buying shares in the hope of their price rising (going long) because a share price can only fall to 0p, whereas it can rise infinitely."

Funny how often one runs across some version of this statement... as though somewhere someone might get short something or other, then enter a coma... along with an entire brokerage... and suffer "infinite" losses... I suppose at some point these infinite losses might achieve such an extreme local density that they would eat away at the very fabric of the universe, rupturing space-time and causing the entire earth to be swallowed up...

Yet the propaganda works: The other day I mentioned to a group of people, some of them even fairly knowledgeable about the stock market (a few already even knew what short-selling was and basically how it worked), that the majority of my trades were short sales, and that I've reached the point where I seem to see the short set-ups much better than the long trades, and they all kind of took a step back, uttered a "really" and an "uh-oh" and so on, looking at me as though I must be some kind of Evil Knievel equity daredevil, and very well might be insane...