Every single time the stock exchange drops, I hear the chatting heads on TELEVISION come on begin the blame video game on Wall Street. For one reason or another, it is constantly Wall Street’s fault that the market collapsed. The latest blame goes to Computers for Stock Trading. Many so called analysts are criticizing investors for the market volatility. They say the high regularity investors, algorithmic investors and also quant funds are manipulating the marketplaces. These traders are even blamed for the flash collision that occurred last year.
Probably the genuine reason for the volatility as well as general poor action of the securities market is the truth we are still in the Great Recession and the typical supply investor no more exists! Totally free cash money has been invested paying expenses. how around the fact many individuals do not have work or money to invest in supplies. When you have much less market participants, you have a thinner market. That is a truth. How come these TV individuals never see that the stock exchange is a mirror of the ridiculous psychology of the economy in the US. There is no certainty with tax obligations or laws, so nobody recognizes what to do. The stock exchange is matching the view of its participants or do not have thereof. I am tired of individuals condemning computers for supply trading for the marketplace insanity.
It is amusing how individuals always blame something they do not recognize when the markets container. I have yet to see a summary of high regularity trading; mirror traderin south africa or algorithmic trading harmed the ordinary market participant. Specialists cannot explain how it functions. All they do is factor fingers. If you are a market participant there is one a roaring reality in all of this. Extremely high powered computers for stock trading are required if you are mosting likely to compete in these markets. If you are attempting to trade on old out-of-date computer you are mosting likely to be at a downside as your decision making engine, that is your computer will be revealing you stagnant details. Even the computers from simply a few years ago, specifically the reduced end ones, cannot stay up to date with today’s amazing levels of data circulation. Finally, the markets are not rigged as the news might claim. But having new computer systems for supply trading is an outright must. Not having great modern technology would certainly resemble contending in an automobile race with an old automobile. So obtain yours fast!