WTF "SEC approves plan to curb volatility in stocks"

Discussion in 'Wall St. News' started by zanek, Jun 1, 2012.

  1. What the SEC seems to be saying is that there will be price movement (intraday trends), but with price not moving too far too fast: "In today's complex electronic markets, we need an automated and appropriately calibrated way to pause or limit trading if prices move too far too fast," SEC Chairman Mary Schapiro said in a statement.
    But, when you buy and soon after it spikes up outside the band, they halt trading for 5 minutes, your position is now at the top of the spike. While you are waiting for them to restart trading you can do as they say: "During that timeout period, traders could assess whether the move was based on fundamentals". If the spike wasn't based on fundamentals, what do they suggest you do with your unexpected gain.
     
    #41     Jun 13, 2012