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flash crash Archive

  • China’s securities regulator signaled it’s open to tweaking the country’s new market circuit breakers after analysts blamed the rules for exacerbating a $590 billion rout in stocks on Monday.

    China Open to Circuit-Breaker Tweaks as Analysts Highlight Flaws

    China’s securities regulator signaled it’s open to tweaking the country’s new market circuit breakers after analysts blamed the rules for exacerbating a $590 billion rout in stocks on Monday.

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  • We may see that FALSE MOVE yet with a sling-shot on a very major scale. This is the BIG SHIFT that will set the stage for markets to align in order to prepare for what is looking to be the collapse of Western Governments & their Monetary System that is now way out of control. The closings today are an omen of what is to come.

    False Moves & the Force Behind Them

    We may see that FALSE MOVE yet with a sling-shot on a very major scale. This is the BIG SHIFT that will set the stage for markets to align in order to prepare for what is looking to be the collapse of Western Governments & their Monetary System that is now way out of control. The closings today are an omen of what is to come.

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  • Predominately, the problem that confronts the majority is the complete failure to comprehend what actually causes a panic. The assumption that there is some BUYER who buys the high and carries that to a loss all the way down providing the mythical short-player vast profits is another myth. The buyers on the way down are typically short sellers taking a profit providing vital support. There are some courageous attempts at bottom picking. However, these tend to die out the longer the decline prevails.

    Spiral Panic

    Predominately, the problem that confronts the majority is the complete failure to comprehend what actually causes a panic. The assumption that there is some BUYER who buys the high and carries that to a loss all the way down providing the mythical short-player vast profits is another myth. The buyers on the way down are typically short sellers taking a profit providing vital support. There are some courageous attempts at bottom picking. However, these tend to die out the longer the decline prevails.

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  • To avoid getting caught at the high or the low, you must understand the nature of markets and how they function. Once you accomplish that realization, you will see your real opponent is YOURSELF, not the grand cabal. The majority must be trapped at the high, which then creates the panic when the majority tries to sell but there is no bid.

    Understanding Trading

    To avoid getting caught at the high or the low, you must understand the nature of markets and how they function. Once you accomplish that realization, you will see your real opponent is YOURSELF, not the grand cabal. The majority must be trapped at the high, which then creates the panic when the majority tries to sell but there is no bid.

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  • Up until about 2006, the primary source of latency, or delay in processing market trading data came from the speed of computers and networks. Wall Street has always bought the fastest computers available, being among the first industries to adopt the latest technology. Faster computers meant faster processing which meant less delay occurred between receiving market data and trading on it. After about 2006, computers and networks reached speeds where the distance between the trading computer and exchange computer started to matter. This is because light, and thus information, has a distinct maximum speed of approximately 186 miles (300km) per millisecond (ms).

    The Beginning of Turmoil

    Up until about 2006, the primary source of latency, or delay in processing market trading data came from the speed of computers and networks. Wall Street has always bought the fastest computers available, being among the first industries to adopt the latest technology. Faster computers meant faster processing which meant less delay occurred between receiving market data and trading on it. After about 2006, computers and networks reached speeds where the distance between the trading computer and exchange computer started to matter. This is because light, and thus information, has a distinct maximum speed of approximately 186 miles (300km) per millisecond (ms).

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  • The answer surely lies somewhere in between. But which is closer to the truth? To find out, we talked to Garrett, an expert on market systems and high-frequency trading. Having experienced first-hand the problems HFTs can cause, he fits firmly in the “detractor” camp, for reasons you’ll read below. Garrett gave us excellent insight into how HFTs profit, along with tips on how to make sure they don’t profit at your expense. I found this interview highly educational, and I hope you do too. It contains the kind of inside intelligence that separates the informed from the uninformed and allows us as individual investors to understand and adapt to our changing markets.

    Interview With A High-Frequency Trader

    The answer surely lies somewhere in between. But which is closer to the truth? To find out, we talked to Garrett, an expert on market systems and high-frequency trading. Having experienced first-hand the problems HFTs can cause, he fits firmly in the “detractor” camp, for reasons you’ll read below. Garrett gave us excellent insight into how HFTs profit, along with tips on how to make sure they don’t profit at your expense. I found this interview highly educational, and I hope you do too. It contains the kind of inside intelligence that separates the informed from the uninformed and allows us as individual investors to understand and adapt to our changing markets.

    Continue Reading...