"Then the other part to shorting was they go to the market to buy the shares they have sold that they didnt own in the first place (fraud anywhere else)"
I'm very curious. How can it be fraud when:
1. You have a choice whether to play the day trading game or not
2. The rules of the day trading game are very clearly outlined
3. The participants are playing by the rules
Fraud would involve some element of deceit - which there is none because the rules are plain and clear to people want to look them up, and it may also involve an element of going outside what's agreed upon - which again there is none because no one is breaking the rules.
Day trading is tough - no one can deny the big guys have an advantage that the small guys don't have. Whether the advantage is in having better research analysts, or better access to business news, or fancy computer software programs, they have an advantage. But it's common knowledge that trading is always risky and anyone who did a bit of research before they dived in would realize that. So if you still agree to play the day trading game, IMHO responsibility for outcomes should fall on yourself.
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