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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Ira Player who wrote (3159)	6/4/1998 11:07:00 AM
From: funky1	Respond to of 4969

I have a question. If you work for a company and you get an idea that anyone else can come up with too. This information is public knowledge however, common sense says this will drive the stock down. Would it violate any insider trading rules to sell the stock short.

To: Ira Player who wrote (3159)	6/5/1998 9:38:00 AM
From: DADDY WARBUCKS	Read Replies (2) \| Respond to of 4969

To all: I have run into this daytrading question before. Here is the deal. If you come into the day long XYZ and then sell it. Next you can trade any stock with the proceeds, including XYZ. BUT if you leave the day long XYZ again. The SEC only looks at the trades that day. Not times of execution. EXAMPLE. Monday- Long XYZ Tuesday- Sold XYZ, Bot ABC, Sold ABC, Bot CDE, Sold CDE, Bot XYZ. Wednesday- Still Long XYZ. In this example they will think that you Bot and sold XYZ, ABC, and CDE. You came into the day with no cash to cover these trades. The way to get around this is to wait until the next day to buy back XYZ. Then it is obvious that you Sold XYZ, then Bot and Sold ABC and CDE. Hope this helps. DADDY