It’s the greed factor that corrupts the way people think in this business. Unfortunately, I needed a 6 fig loss to remind me how stupid greed can make a person. Needless to say, from here on, or until I recover some of these losses, trading will be disciplined.
The Fly
Sept. 26 (Bloomberg) — China’s cabinet agreed to let investors buy shares on credit and sell borrowed stock to help develop Asia’s second-largest market after prices and trading volumes slumped, an official familiar with the plan said.
China’s government is betting the changes will boost trading without spurring further declines after state share buybacks helped the CSI 300 Index rebound from a two-year low.
China has scrapped the tax on stock purchases and relaxed company buyback rules to help support the world’s second-worst performing stock market this year.
The CSI 300 rose 0.9 percent today and added 8.2 percent this week, the first weekly gain in nine weeks.
Selling borrowed stocks serves as a balance to buying stocks with borrowed money.
Careless leveraging will always cause greater evil than any size of short selling.
Short selling reduces volatility, cuts the bid/ask spread, makes the market more predictable.
Short selling provides healthier, higher quality market.