High-Frequency Gambling Casino, Market Obstacles, and also Minor Point in time Person

On or just around the 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 world responding as to the was going on a handle extreme volatility. Under such conditions, are often instances when investors lose big time or make incredible gains. Generally, it’s the marketplace professionals who are in the overall game and understand the overall game, that eventually ends up with the prize winnings.

At one time the Dow Jones industrial average went down 632 points in one day. It had been the greatest drop considering that the 2008 market crash in a one-day period. The total amount of volume being traded that day was in excess of how many small-time investors in the market. That’s to state, those numbers were impossible, roughly unlikely and highly improbable to create one wonder. The thing that was going on? Well, it’s simple; the high-frequency trading computers utilizing 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 talking to a guest and suggested that it was finding a little uncontrollable, and things weren’t fair to the small guy, the average person investor. Worse, it was completely eroding confidence in our stock markets. If the smalltime investor doesn’t feel safe or feels that the overall game may be the rig, as being a slot machine in a casino, then why would they play?

I laughed because I was in the middle of writing this information when I heard his condemnations of high-frequency trading schemes, and I completely agree using what he was saying. Needless to say, this is not the very first time, if you’ll recall this past year there was a substantial flash crash when the machines took over, and that also rocked investor confidence, and yes the authorities and SEC have looked into the problem, but obviously hasn’t fixed it yet บาคาร่า. To have 10% market swings within just a few days of trading keeps people up during the night, it causes stress and even heart attacks.

When smalltime investors who’ve their life savings and their retirement monies in danger, all that they’ve ever earned that uncertainty requires a toll. Not only to them, but additionally on the overall confidence, and that’s bad for our nation because our stock markets are to simply help capitalize American businesses. If they’re working, that creates a huge problem. It’s too bad no one is addressing this dilemma or fixing it. Indeed I hope you will please think over all of this and think on.


Leave a Reply