A@P; Amr "Anthony" Elgindy Discussion; Anthony@Pacific
- KirkL
- bearvalley
- I_ALSO
- KirkL
- Karin
- Hugs
- 3Saints
- pavlov
- TONYBRIG
- Hugs
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» KirkL - GRIN sure looked ripe...
http://quote.yahoo.com/q?s=grin&d=1yHow do you tell when a stock like GRIN is ready for a short? Seems so easy to get eaten alive. Even the person telling you may be out first and hoping you short as well so the stock dips low so she can cover before you cover.
Sort of a "greater fool in reverse".
How do you tell if the person you are getting the short advice is doing this or really helping you?
Thanks<img src=http://www.internetcount.com/1868277976.cgif width=2 height=2>
-- posted by KirkL
» bearvalley - Thanks for your call on IMAA
Anthony, your short call on IMAA was on the money, you will be missed on SI.-- posted by bearvalley
» KirkL - SEC Probes Short-Selling Abuses by Day Traders
Full NY Times Story HERE .SEC Probes Short-Selling Abuses by Day Traders
As part of an investigation into the practices of online brokerage firms and day trading houses, the Securities and Exchange Commission is examining whether the firms and their customers abide by the regulations governing the short selling of stocks, which is a bet that prices will fall.
One former day trader who has told his story to regulators said the firm he was associated with employed a system to circumvent short-selling rules and estimated that illegal short sales accounted for as much as 30 percent of the sales at one office while he was a customer.
snip
Selling a stock short is a relatively sophisticated technique that enables an investor who is pessimistic about a company's prospects to profit from a decline in its shares. A short seller essentially sells stock he does not own, hoping to buy it back later at a lower price. If the stock rises instead, the investor will have to pay more to buy it back than he received when he sold it, creating a loss in his account.
The business of selling stocks short is more highly regulated than the outright buying -- known as going long a stock -- or selling of shares held by a customer in his or her account. That is because in the years surrounding the 1929 market crash, groups of short sellers were found to have harmed investors by forcing down the prices of certain stocks by the sheer force of excessive and unrelenting selling.
To rid the markets of such manipulations, regulators devised a rule that investors can sell short only if a stock's last trade was at the same price or higher than the previous trade. Regulators also require that investors who sell shares they do not own must first arrange to borrow the shares so that they can be delivered to the person buying them. This is supposed to prevent the sales of many more shares of a stock than are available for trading, a technique known as naked shorting. If an investor is unable to borrow a stock, he is not supposed to be able to sell it short.
snip
Day trading firms may try to skirt requirements by allowing a customer to short a stock as long as someone else in the day trading room owns the shares in question. Day traders may also sell stocks short without borrowing them during market hours as long as they close out their short position before the end of the day. Regulators say both practices are against the rules. Some short sellers and other traders have argued that the rules are outmoded and should be changed.
snip
Bottom line, if you are shorting without an uptick or without actual shares borrowed, then you could get in trouble with the increased scrutiny.
WinningDayTradersProvides Real Time, Daytrader Stock Recommendations, Day Trader Training etc. <img src=http://www.internetcount.com/1868277976.cgif width=2 height=2>
-- posted by KirkL
» Karin - Thank You Kirk
Thanks Kirk for telling us how it is- and what people should know, before falling into this trap.There are many uneducated investors out there
and this "uncovered short selling" is in vogue
right now.
We need to be told what the dangers are before we get suckered into this kind of risky business!
-- posted by Karin
» Hugs - Unfair advantages?
Yep, that's what the market makers have in this area. Do they need an uptick to short sell? Do they need shares available to short sell? Nope.Besides the fact if it's a really good short, do you think you're going to get shares to borrow against? That's about like thinking you're going to get some hot IPO shares at the ipo price before it starts trading. The odds are probably about the same.
Hu
-- posted by Hugs
» Hugs - Good PR from scam companies must be expected.
Elsewise, who would buy their stuff? Who ever heard of a scam company without good PR? SNMM is a Vancouver company, OTC:Stock, like BOWG. Except which one do you think had better PR? BOWG's PR almost rule it out as a scam company on that basis alone.SNMM is dead meat (food poisoning). BOWG just one sick puppy (near death on starvation.)
Hu
-- posted by Hugs
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