Friday, September 19, 2008

Trading on Mars - You are not allowed to manage risk!

The price discovery mechanism in the marketplace no longer exists because the SEC rule does not contain a market maker exemption. The blanket aspect of these short-sale restrictions has completely rigged the prices on your screens. For the first time in my life, I do not trust the quotes on my screen. The SEC rule not only banned short sales but it also banned effective hedging and risk management. This is a total joke.

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