High Frequency Trading

Discussion in 'The Lounge' started by oma, Aug 11, 2011.

  1. oma

    oma MajorGeek

    oma, Aug 11, 2011
    #1
  2. Rikky

    Rikky Wile E. Coyote - One of a kind

    Thats just insane.

    So the stock drops all the computers will sell,when the stock starts to go up all the computers will buy causing huge sways in stock prices.:confused

    Its just glorified gambling,they don't produce anything for the economy just make it less stable.

    It should be outlawed or regulated with minimum investment terms.
     
    Rikky, Aug 11, 2011
    #2
  3. oma

    oma MajorGeek

    Me thinks it's in reverse. Prices of stock will go down when there is a sell-off and up when there is a buying spree.
    True, sounds like Wall Street turned into Las Vegas style gambling eh?
    I agree, it should be outlawed because the regular investors and people with 401K's get screwed this way since they can't compete with a super duper computer that gets to see the wheeling and dealing in nano seconds. That's manipulation IMHO and not honest trading.
     
    oma, Aug 11, 2011
    #3
  4. DavidGP

    DavidGP MajorGeeks Forum Administrator - Grand Pooh-Bah Staff Member

    Indeed, also Short Selling is not great for the markets either and some EU countries have banned this practice yesterday as they where seeing bank stocks take a hit due to this practice.

    The market analysts (well paid guessers) and traders just guess as its always worried me if a company such as say Diageo one of the worlds biggest drinks makers can issue a nice profit, that the shares drop and throughout the year can drop as well as go up when the company has done nothing significant to cause a drop or rise in shares.

    Share dealing is like putting $10 on black or red on a roulette table! these days I dont deal in shares at all, too volatile an investment.
     
    DavidGP, Aug 12, 2011
    #4
  5. BILLMCC66

    BILLMCC66 Bionic Belgian

    They have blocked it here in Belgium because the national banks are taking big hits.
    I have shares in BNP Paribas Fortis and in the last week they have lost 300 million Euro's :cry
     
    BILLMCC66, Aug 12, 2011
    #5
  6. DavidGP

    DavidGP MajorGeeks Forum Administrator - Grand Pooh-Bah Staff Member

    Yeah the French banks where hit heavy, for actually no reason in reality apart from a vague notion of a default in some countries leaving the French banks open to losses, I wish I knew what they market analysts knew of the future as I would be asking them what next weeks EU Lotto numbers are?!

    These folk are making large sums of money off the backs of investors and most are retired folk who need these to help in retirement, its not a game but they play it like one.
     
    DavidGP, Aug 12, 2011
    #6
  7. BILLMCC66

    BILLMCC66 Bionic Belgian

    This is an extract from one of our national papers.
     
    BILLMCC66, Aug 13, 2011
    #7

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