Black boxes destroying market for everyone

Quote from traderNik:

I'm sorry, this is not meant to be a slag, but I recall you're saying that you can do 100% a day with relatively few problems.

As a result of reading this post, I am now convinced that you don't actually trade real money.
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Well you need to learn to read then. I never said I can do 100% a day I dont measure performance in single days. I said I can do 200%-300% in a few days (and not one year).

I am attaching a screenshot. A position of 4 november BRS 25.0 puts which I announced some time ago went from 2.00 a put to 3.80 a put.

Then I lost money on CRK for the simple reason that I could not sell it when it opened at 33 and change because optionsxpress site was non responsive.
 

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Quote from piggie2000:

There needs to be some type of penalty for throwing out over a certain amount of orders per day.
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Sure. Let's start by limiting your trading. $50k margin per Spoo contract and no more than 1 roundtrip per week. Anything beyond is clearly "mindless" speculation and adds no lasting economic value.
 
I do think you will see the elimination of pure straight shorting. There are many ways to hedge your long posistion now through options/futures/ETF etc etc.

The ability to send massive sell orders on one stock which drives it into a "death spiral" is something never anticipated or possible before the advent of the computer based trading.


Fundamentally you are selling something you don't own...

The rapid demise of BSC, LEH, FNM etc is going to have large unintended consequences....much more and much tougher regulation....

And, institutions are going to realize that loaning their shares out to BD's for shorting inventory is not a good idea.....sure they make a little interest but their stock is down $20, LOL....


Not making a judgement....just a prediction....


SteveD
 
Quote from piggie2000:

I forsee some type of limits or taxation on black boxes. This crazy volatility is the work of 1000's of mindless automated black boxes. There needs to be some type of penalty for throwing out over a certain amount of orders per day. The actions of a few will cause regulation for all of us.
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black boxes are good for small traders.

black boxes exaggerate proper entry signals for larger profits.

your risk is lowered because you need to make fewer marginal entries.
 
Quote from SteveD:

I do think you will see the elimination of pure straight shorting. There are many ways to hedge your long posistion now through options/futures/ETF etc etc.

The ability to send massive sell orders on one stock which drives it into a "death spiral" is something never anticipated or possible before the advent of the computer based trading.


Fundamentally you are selling something you don't own...

The rapid demise of BSC, LEH, FNM etc is going to have large unintended consequences....much more and much tougher regulation....

And, institutions are going to realize that loaning their shares out to BD's for shorting inventory is not a good idea.....sure they make a little interest but their stock is down $20, LOL....


Not making a judgement....just a prediction....


SteveD
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But you don't think they could ever regulate shorting futures? That would not be possible?
 
Quote from SteveD:

The ability to send massive sell orders on one stock which drives it into a "death spiral" is something never anticipated or possible before the advent of the computer based trading.

SteveD [/B]
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Which computers systems were selling in 1929?
 
Quote from veggen:

But you don't think they could ever regulate shorting futures? That would not be possible?
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At this point, I would think ANYTHING is possible. Although they'll never admit to their own lax regulation on subprime lending, they'll nevertheless use that as an excuse to blame the shortsellers as the real culprit to the current crisis.
 
Quote from saliva:

At this point, I would think ANYTHING is possible. Although they'll never admit to their own lax regulation on subprime lending, they'll nevertheless use that as an excuse to blame the shortsellers as the real culprit to the current crisis.
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But in the futures market there is not a fixed amount of contracts. There needs to bee a seller for every buyer. So it would not be possible to regulate short selling in futures-market? Or am I compleatly wrong here?
 
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