Every time the stock market goes lower, I hear the speaking heads on tv seriously start the offender game on Wall Street. For reasons uknown, it definitely is Wall Street’s fault the marketplace collapsed. The newest blame visits Computers for Stock Exchanging. Many so referred to as analysts are blaming traders for your market volatility. It is said the top frequency traders, algorithmic traders and quant cash is managing the markets. These traders are blamed for your flash crash that happened a year ago.
Probably the actual cause of the volatility and overall poor action from the stock market is we are still inside the Great Recession as well as the traditional stock investor ceases to exist! Free cash remains spent getting to pay for bills. How about the actual fact many people don’t have jobs or money to buy stocks. For those who have less market participants, there is a thinner market. This is a fact. The TV guys never realize that the stock market can be a mirror in the insane psychology in the economy in the usa. There is no certainty with taxes or rules, so nobody understands how to proceed. The stock market is just mirroring the sentiment of the participants (or lack thereof). I am frustrated with individuals blaming computers for stock exchanging for your market madness.
It’s funny how people always blame something they do not understand when the markets tank. I’ve not yet go to a description of high frequency exchanging, quant exchanging or algorithmic exchanging hurt the normal market participant. Experts can’t explain the ins and outs. All they’re doing is point fingers.
If you are an industry participant there’s one a blaring truth throughout this. Powerful computers for stock exchanging are essential if you’re planning to compete over these markets. If you are trying to trade on old outdated computer you’ll attend a drawback because the making decisions process engine, that’s your computer will probably be demonstrating stale information. The computers from only a few in the past, specially the lower finish ones, can’t maintain today’s incredible levels of data flow.
To summarize, the finance industry is not rigged since the news may say. But getting new computers for stock exchanging is required. Not receiving good technology might be like competing in the auto race by getting a classic vehicle. You will want yours fast!