Naked shorting is basically illigal and it should be. How can you sell or sell short something you don't have? It's bad enough for brokers to lone our shares for normal shorting without our permission(which I think is morally wrong also) than to have people out there naked shorting.
Why should any shorting be permitted with your shares. They belong to you,nobody else. It's like having a new car and someone takes it out on the road without your permission and beats the crap out of it and then gives it back to you and you have to repair it yourself. The shorter takes your shares,sells them, drives the price down to half what you paid and gives them back to you. You may get your money back you may not. You may have lost a lot of it in a stop/loss all caused by that guy borrowing your shares and selling it down.
But naked shorting which is illigal goes on whether allowed or not getting me back to what I said earlier,how can you trust anyone or any governing body or company or institution involved in the stockmarket? If you haven't already had a bad personal experince with it, all you have to do is check the news every other day and the corruption in the market will jump out at you and smack you in the face. It's there, protect yourself, trust nobody but that's no reason why you can't still make money there.
Just trying to make a point "not to blindly trust anyone who has anything to do with the stockmarket" but play it with that always in the back of your mind.
Some people here will say this is a pile of crap but it's the way I have learned to play it and it's better to trust nobody and be cautious than to do the opposite and pay the price.
