High-Frequency Gambling Casino, Wall street game Difficulties, as well as the Tiny Moment Trader

On or just around enough time of the July-August 2011 debt deal negotiations in Washington DC and the Standard & Poor’s downgrade of US treasuries we watched the US stock market, and stock markets around the globe responding from what was going on a handle extreme volatility. Under such conditions, are generally occasions when investors lose big time or make incredible gains. Generally, it is industry professionals who’re in the game and understand the game, that ultimately ends up with all the prize winnings.

At one point the Dow Jones industrial average went down 632 points in a single day. It was the largest drop since the 2008 market crash in a one-day period. The amount of volume being traded that day was in excess of how many small-time investors in the market. That is to say, those numbers were impossible, roughly unlikely and highly improbable to make one wonder. The thing that was going on? Well, it’s simple; the high-frequency trading computers employing their sophisticated artificial intelligent algorithms were making trades in microseconds, and tens of thousands of them per every 10 minute period.

On Larry Cudlow’s “Free-Market Capitalism” show on CNBC Larry was speaking with a guest and suggested so it was finding a little unmanageable, and things weren’t fair to the small guy, the patient investor. Worse, it had been completely eroding confidence inside our stock markets บาคาร่า. If the smalltime investor doesn’t feel safe or feels that the game is the rig, as being a slot machine in a casino, then why would they play?

I laughed because I was in the center of writing this short article when I listened to his condemnations of high-frequency trading schemes, and I completely agree using what he was saying. Obviously, this isn’t the very first time, if you’ll recall this past year there is a substantial flash crash once the machines took over, and that also rocked investor confidence, and yes the authorities and SEC have investigated the situation, but obviously hasn’t fixed it yet. To own 10% market swings within just several days of trading keeps people up at night, it causes stress and even heart attacks.

When smalltime investors who’ve their life savings and their retirement monies at an increased risk, all that they’ve ever earned that uncertainty has a toll. Not just in it, but in addition on the general confidence, and that’s not good for our nation because our stock markets are to greatly help capitalize American businesses. If they’re working, that causes a huge problem. It’s too bad no-one is addressing this issue or fixing it. Indeed I really hope you will please think over all this and think on.

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