This morning there has been a lot of talk about reversing traded during the 30 minutes when the DOW took its 1000 point nosedive and then its immediate 600 point roller-coaster recovery but I have one question.
We all make decisions that are contingent on other events, you can't easily take a number of events and then eliminate them without realizing there are a lot of direct and indirect effects that were based on these original events.
If you bought 10000 shares of Accenture stock when it dropped from $40 to $0.01 per share and then sold when it rebounded back to $40 you have now made Millions of dollars which you may then have used to buy Johnson & Johnson or IBM or whatever. If they eliminate the first trade you would have never had the money for the second purchase. Are we going to start wiping out other events that may have been unfortunate? In this case can we go back to that last wedding I went to...
With the estimates today are that 50% of all trades are made automatically based on complex algorithms which fire when certain events happened but somehow these algorithms are either too complex or not complex enough because it's A.I. is no better than Alf.
So maybe it's time for less robotic trading and go back to having some human involvement. Do you ever notice that when you set a limit on anything on anything be it your house alarm or some computer program it almost always backfires. Might be time to stop worrying about the next complex automatic sell-points and instead focus on some kind of way to catch a glitz before it breaks the world economy like a pretzel..
It seems like today's ability to catch a computer glitz is about as good as the ability to operate the shut-off valve on a oil pipeline in the Gulf of Mexico.
Sent from my Verizon Wireless BlackBerry
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