SEC will broaden existing rules prohibiting naked short selling
Securities and Exchange Commission Chairman Christopher Cox said Tuesday to Congress that the SEC will broaden existing rules prohibiting naked short selling of banks and broker dealers in a bid to protect Fannie Mae and Freddie Mac.
Short-selling is a type of speculation, where a trader sells securities he doesn’t own; essentially, it’s a bet that a stock will fall. Naked short-selling is when a trader makes such a bet without arranging to borrow the stock first. The SEC already has rules limiting naked short-selling in certain circumstances.
Check out our March 16th video on the uptick rule.
They’ve changed the rules again to cover their folly.
First published March 16, 2008 under: Here’s why everything is hitting the fan at the same time.
Here’s the original post.
After safely protecting investors for over six decades, a little known SEC rule was quietly removed on July 6, 2007.
With the removal of this rule all the rules of trading and investing in the market went out the window.
One of the reasons for the market’s current volatility is a direct result of this rule change.
This major SEC rule was designed to protect investors.
With the removal of this rule, professional traders and hedge funds will be able to suck money out of the market and your portfolio in no time flat.
Why this rule that has stood the test of time since 1938 and was put in place to protect investors was removed is a big mystery.
Why now?
Here’s what I suspect happened… some large hedge funds got together and lobbied to have this major trading rule removed.
It’s just that simple. Why else would the SEC act out of the blue and remove this very important investor safe guard?
I suspect with this rule change the hedge funds have just been given the keys to Fort Knox.
I made this video last year but it details how this new ruling will effect you. The video explains in every day language what you can do to protect your capital from the hedge fund gunslingers and professional traders.
Watch the video as my guest. No registration required.
After you view the video you will have the knowledge on how to protect your portfolio, while at the same time reducing your risk exposure.
Adam Hewison
President INO.com
Don’t ever do this …
Bad Trades
A bad trade is like a dead fish: The longer you keep it, the worse it smells.
Good Trades
When a trade is making money, the market is telling them they are right and to let the position ride.
Don’t ever do this …
Winners don’t add to, or “average”, losing positions. They dump the trade and go looking for a new opportunity. Successful investors may add to the winning trades. When ahead, they press their advantage while remembering that at any time the market can turn on them and prove them wrong.
In trading keep your mind clear and do not get emotional about a trade. Remember you are not married to a stock rather you are in the dating game.
Learn more about common sense trading.
Adam Hewison
Co-founder of MarketClub
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