June 1, 2009
I have been an investor/trader over 35 years. It was clear in early July '07 something had changed .I was unaware then that the uptick rule had been removed. Stock I owned were simply being killed all of a sudden without reason. These are stocks where an average trade is only 100-200 shrs.
When I found out the uptick rule was gone I was quite upset. Thats about the most boneheaded , anti-investor move anyone could do. Anyone who thinks it doesn't have any effect or says they did a study , doesn't know what they're talking about , obviously have never traded for themselves , watched how bid /ask spreads change as trades take place and the effects of bid/ask size on price movement. I was also unaware that naked short sales were being allowed. I guess that explains how my small cap stock can trade down more than its float in a relatively few days. Sad . Also I think trading in cents vs. fractions have exacerbated effects of short selling .
Any way Please bring the uptick rule back into force and get rid of naked shorting . That means for everyone.