News Focus
News Focus
Followers 26
Posts 3063
Boards Moderated 0
Alias Born 07/07/2002

Re: Mr. Bill post# 622579

Thursday, 05/07/2009 1:06:21 AM

Thursday, May 07, 2009 1:06:21 AM

Post# of 704049
Must be some really quick fingers on the keypads. LOL.

I have been suggesting that rules against "trading for effect" should be enforced. One suggestion I made earlier was an order size cap: no one should be allowed to trade on one side of the market in a five-minute window in sizes in excess of, say, 0.1% of a company's total float; i.e. if someone wants to unload his 10% of a company (ownership substantial enough to require filing), it has to be done over a day or two, not in a few minutes or a single order; same restriction applies to shorting substantial per centage of a firm. It makes no financial sense for anyone to unload (or buy) in a mad dash like that and trigger a price collapse (or moonshot). This kind of orders should be assumed to be "trading for effect."

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today