Return of short-selling bans: market protection or 'war against truth'?

Discussion in 'Wall St. News' started by Jack_Larkin, Nov 19, 2019.

  1. zdreg

    zdreg

    plus a financial transaction tax in all of the EU
     
  2. dozu888

    dozu888

    considering that fear is an emotion 3X stronger than greed, the perfect solution is probably somewhere in between complete free market and complete regulation/ban.
     
  3. bone

    bone

    Note: this thread title and the cited article is about Turkey and South Korea - and to an incredibly limited extent, the EU.

    Not the USA. In fact, the NY Fed thinks that short selling restrictions don’t really work.
     
    Last edited: Nov 19, 2019
    dealmaker likes this.
  4. zdreg

    zdreg

    re: Fed
    It doesn't matter.It is a political decision.
     
  5. a way for managing risk on the down side.
     
  6. bone

    bone

    You’ll never get a job at the ECB with that kind of attitude :D

     
  7. ps0013

    ps0013

    Interesting statement about fear being stronger than greed...I wonder how that correlates with the low percentage of successful traders
     
  8. dozu888

    dozu888

    it's basically fight or flight reflected on the chart.. a necessary survival mechanism built in after millions of years of evolution..

    not much direct correlation to the low success rate per se... people fail just miserably with forex... and with forex there is really no up or down, right? cause up for 1 currency is down for the other.

    but you do see this in equities, where typically the panic sell speed is 3X the slow grind up... hence the saying - bulls climb up the stairs and bears jump out of the window lol..

    and in terms of taking advantage of this... I often advocate mental flexibility, including the proper trading time frame.. in a slow bull market you do NOT want to trade intraday... you want to breath in the same rhythm, stay in position for the long haul.... like these days so often when I wake up I am already up A LOT lol.

    but when the market panics and on certain days the direction is so obvious, you can leverage up intraday to make a killing.
     
  9. d08

    d08

    Humans never change. If X jumps 20%, CEO pats himself on the back for being a genius. If X dumps 20%, it's the fault of short-selling manipulators. Some excellent narcissism.
    Usually when you notice short-selling restrictions in countries, it's a sign that the economy is in real trouble. Remember, the last short-selling panic was in 2008-9.
     
    #10     Nov 19, 2019
    dealmaker and bone like this.