New Stock Trading Rule.
The new rule would pause trading on individual stocks that fluctuate up or down 10% in a five-minute period.
So if you were in on an automated buy at 59.99% lower than any of the stocks that day, you made a lot if you then turned around and sold that same stock as soon as you could (4 days later.)
But that is likely to never happen again. In fact no stock can become worthless in a reasonable amount of time if only 10% down is all that is allowed, regardless of the time period. Its math. a repetitive 10% reduction in value ever five minutes will take how long before a stock worth a dollar at start, becomes worthless?
If you think 50 minutes you are wrong cause 10% of 90 cents is not 10 cents but 9 cents and 10% of 81 cents is 8.1 cents and 10% of even 1 cent is not 1 cent.
Rules are what we ultimately figure out how to abuse and break the intent of.
The stock market was originally intended to allow you to make in investment in a company you believed in and share in the profits or losses for doing so.
But today the stock market does not work that way. Instead you probably don't know where you money is and you move it, or someone else does in order to do nothing more than transfer value without creating any product or service wealth.
Honestly, remove the identity of the companies providing stock and what else do you see but such a transfer of value on a high level of abstraction.
And the unidentified companies in their view of fluctuating value of their stock have what to rely on as investment?
In other words, above the original intent of the stock market there is a value transfer game going on that produces no new value in product or service.
If you are in the markets deep enough you can see enough to know how to manipulate teh markets and rule set for always winning.
And this is probably what happen in this one time deal and done so to help get Greece out of the danger zone. And that is probably also why the shut off limit was set at 60%. If you know the details of the Greece debt information, there is a 60% limit.
Knowing this was most likely what really happened (motivated to do so to save the market - Greece failure effecting the European and world markets??) you'd also know that the markets will continue to drop as the low buy needs to be sold off at a profit and that's a lot to sell off, but obviously not all at once as that would again crash the market....
But then that can't happen now, with the new rule. What the new rule does is allow the automated system to insure a profitable sell off for Greece.
But what side of this are you on? The looser side?
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