This new 10% Rule will be the next Scam....

They can game the system. Your gonna see limit up or limit down on stocks NOW? This is outrageous. Even when a stock goes up. Now you might not be able to get in or out of a position, until the damage is done. Mark my words this joke of a rule cannot last. I can see the sharks gaming this big time. It'll be like commodities, lock limit. Every ten minutes trading will open and in a flash the price will be 10% higher and will have to shut down. Try to get your order in, yeah right. Stock will get to where its going first and then finally open to who's left. Missing the move. I was watchng Fast Money and they all seemed to think this was a great idea. They have no clue.

They can game the system. Your gonna see limit up or limit down on stocks NOW? This is outrageous. Even when a stock goes up. Now you might not be able to get in or out of a position, until the damage is done. Mark my words this joke of a rule cannot last. I can see the sharks gaming this big time. It'll be like commodities, lock limit. Every ten minutes trading will open and in a flash the price will be 10% higher and will have to shut down. Try to get your order in, yeah right. Stock will get to where its going first and then finally open to who's left. Missing the move.

I was watchng Fast Money and they all seemed to think this was a great idea. They have no clue.

yes, they may turn stocks into pork bellies...lock limit moves more often. In other words, they will get a result they were trying to prevent. Imagine a biotech stock that has a drug approved or test failure, when they typically move 60-90%.

Edited by tommyt, 18 May 2010 - 09:54 PM.

i think this is called overengineering and I am sick of it too... it will destroy liquidity . it will be like having a bad phone connection these morons fail to understand that panics and bubbles are necessary elements of supply demand relationships!!!

Edited by tradesurfer, 18 May 2010 - 09:58 PM.

When the market opens 5 minutes later you would have to put your buy or sell price within the 10% range. In order to have the hope of getting filled. Imagine that scenario. Trading nightmare.

Sure glad I am not an avid day trader. If the 10% rule flies longer time frames looking better and better.

I'm for the 10% rule for a certain number of stocks. I think it should only be for about 50 of the biggest cap stocks.... I think it will help reduce a lot of volatility in the ETFs.. The problem is the leverage of stocks in other financial assets... Barry

Agreed. And the time to re-open will move way up from five minutes, as well. I remember holding both winning and losing pork belly positions through 4 straight days of lock limit in the eighties.

My understanding is that this rule covers a 10% move WITHIN 5 minutes. If that is the case, I can't think of many times in my trading career when this type of rule would have ever come into play. I don't think it's going to be a problem. And I doubt it will dampen (or heighten) volatility of the indexes or ETFs. IT