Comments on: Chart of the day, flash-crash edition http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: knahar1816 http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37649 Fri, 06 Apr 2012 08:12:38 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37649 You are posting an important Penny Stock article. It’s most important for everybody.
Thanks
Kamrun Nahar
“top penny stock picks”

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By: mfw13 http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37384 Tue, 27 Mar 2012 20:26:18 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37384 There’s a simple solution to all this, namely a 99% capital gains tax on all trades held less than x minutes/hours/days.

You wanna get rid of extremely short-term algorithmic trading…make it unprofitable.

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37335 Mon, 26 Mar 2012 15:59:00 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37335 “@FifthDecade: LTCM busted, in my opinion, due to leverage ratio and over confidence of the players.” (Nico, above)

Nick Leeson, Hamanaka, LTCM – they all made the rookie mistake of not dumping the losing trade fast, and instead doubled -down in it and rode it all the way to destruction in each case. Why not? Wasn’t like it was their money they were burning, was it?

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By: nico_hua http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37322 Mon, 26 Mar 2012 05:12:18 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37322 @FifthDecade: LTCM busted, in my opinion, due to leverage ratio and over confidence of the players. It is irrelevant to the same issue which happened here.

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By: Strych09 http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37283 Sat, 24 Mar 2012 23:00:07 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37283 At least one manager on the IT staff at BATS should be getting fired because of this. This is why you do the most extensive testing you can before “go live” on a complex system, the costs of NOT catching a “software bug” are incredibly hard to calculate.

Is there any doubt that BATS, when they do IPO, aren’t going to get the share price that they originally wanted? What do you think the discount will be? 30%? Now, upper management should be asking themselves, why did we choose to take shortcuts and not do the testing that would have prevented this? Was saving that money and time worth a 30% IPO stock price discount?

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By: deadduck http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37281 Sat, 24 Mar 2012 14:26:41 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37281 Flash Crash or Cash In A Flash? The penny stock market is here to stay! Amen?

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By: Exponential http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37274 Sat, 24 Mar 2012 06:09:07 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37274 Parabolic trajectory? That’s not right…
That’s exponential, man.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37269 Sat, 24 Mar 2012 01:39:04 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37269 Presumably in a more active market, the same sort of thing happens, but is disguised by the noise of so many other players doing the same thing. All following some similar parabolic formula designed to profit the firm running the program. And without any connection to reality.

Scary really. No wonder LTCM went bust.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2012/03/24/chart-of-the-day-flash-crash-edition/comment-page-1/#comment-37268 Sat, 24 Mar 2012 01:24:15 +0000 http://blogs.reuters.com/felix-salmon/?p=12654#comment-37268 And it will happen again and again because the tail risk was removed when the exchanges canceled trades the last time around.

No reason at all to supervise your trademaster4000. Heads you win… tails the trades get canceled.

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