RSS is part of the scheme to make the rich gets richer at the expense of ordinary retailers. Unlike other more matured market, BURSA is too small to benefit from short selling and fair to all market participants. RSS is a form money muscle power reserved for the elite group of participants.
It is definitely not a level playing field as far as stock trading is concerned. To make it a level playing field everyone, including retailers, should be allowed to short sell. If futures trading of FKLI and FCPO allow retailers to short sell I do not see why this is not allowed in stock trading. Although there are some differences between stocks and futures trading, the authorities can come up with a mechanism to overcome such issues so that fairness is given to all.
RSS is akin to buying big or small. Bursa should open a separate section for RSS just like playing 'futures' up or down to determine gain or loss but not involving the actual stock trading. To me RSS on actual stock trading should not be allowed at all as it is totally a gambling and not an investment. The action of RSS would deprived actual investor of the choice of selling when reaching their targets price. Furthermore, just like the glove counter, somebody is selling and it should not be coincident, at the time when JP Morgan downgrade the share price and i guess those RSS are foreigners. This is detrimental to Bursa as squeezing money from retailers would finally turned them away from investment and outflow of revenue from Malaysia as a whole.
@DckyMe. Do you think it is fair when your capital are tied up in stock for a period and somebody on the contrary deprived of your opportunities when wanted to sell at your target price. Capital tied up vs Capital not tied up in stock.
Of course it's not fair. In trading, there are both sellers and buyers. Market does not wait for you or your target. As I said before, when one exposes vulnerability, someone will definitely try to make profit.
Yes better ban short selling on serba, scib and kpower better let the existing shareholders lari 1st instead of benefiting the predating short sellers mah!
Posted by very_goat > Jun 26, 2021 4:02 PM | Report Abuse
I PROPOSE WE BAN SELLING. ONLY CAN BUY BUT NO SELL.
good or not?
only way is up up up and up.
btw, paper losers still not yet reply to my question. RSS was reinstated in Jan 2021, all glove counter started to drop since September 2020, why they all drop without RSS? Is it still RSS fault?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Jack Khan
1,294 posts
Posted by Jack Khan > 2021-06-26 12:56 | Report Abuse
Not hate but unfair! because it is not available or hard to execute by normal retail investor