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Naked Shorting – The Fleecing of the Retail Stock Trader

I’m relitively new to trading in securities.  I have stayed in the realm of stocks and options.  All the books I’ve read like A Beginner’s Guide to Short Term Trading by Toni Turner have said that you are in a minus sum enviornment when you trade stocks.  By the very nature of the size of the money I have to invest I realize that I’m at a disadvantage.  But when I saw this video on Google by Bloomberg entitled: Phantom Shares. I realized why my shares of SolarFun Power Holdings Co., LTD. (SOLF) were doing so badly.  Naked Shorting is killing SOLF.  I went to www.nasdaq.com and found the Short Interest Report to see how badly it was shorted.  I also noted that SOLF was put on the REG SHO (Regulation SHO) List  on 12-DEC-2007.  So what does this all mean?  It means the hedge funds and other large players are manipulating the price.  The little retail guys like me are getting sheared.  So what can I do?  I don’t know yet.  I’ll let you know when I figure it out.

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