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03Lightningrocks wrote:

SQLGeek wrote:

03Lightningrocks wrote:It is due to computerized trading. They have algorithmic programs set to buy and sell based on trading patterns and volumes. They have also programmed key word detection into the game. The program reads the word explosion and Obama. Within milliseconds it begins dumping. Other computers then react in turn. Market dropping fast.... Explosion... Obama... Sell. It feeds on itself. It happens more than most folks realize. A few months back a fed report was due out. Split seconds ahead of the release, the minutes were already being fed into the computers. The market dropped hard, two seconds later it moved up fast... Then dropped hard again... Then moved up and settled down. The funny thing was watching it happen a split second before certain key words were read from the minutes.

Yep... I day trade. Moments like that can be real fun... And a terror at the same time. The average investors have no chance of keeping up with these computers. It has gotten so crazy, they actually compete to set up "terminals" closer to the exchange so they can feed the info into the computer milliseconds ahead of other computers. By the time folks like myself or the average investor see the movement, we are looking at history.

Every time I start playing with the idea of doing some individual investing, things like this come around and make me go.

I hear you on that. I have been day trading now for about 22 years. I would never consider day trading as investing. It's more of a game. I watch charts and look for patterns in volume and pricing. When I get busy with my real job, running a business, I park my day trading Capitol in cash. A move like we are talking in this thread is a day traders perfect opportunity if they don't get greedy.

Don't let these crazy moves scare you from true investing if your time horizon is ten years you will come out ahead. Do diligent research on stocks you buy and average in over time. Don't be afraid to sell if something fundamental changes from your original reason for buying the stock. Be careful about hopping on the latest fad stock. Look for good companies that have established track records and if they pay dividends, that's a plus. Reinvest the dividends for growth.

03Lightningrocks wrote:It is due to computerized trading. They have algorithmic programs set to buy and sell based on trading patterns and volumes. They have also programmed key word detection into the game. The program reads the word explosion and Obama. Within milliseconds it begins dumping. Other computers then react in turn. Market dropping fast.... Explosion... Obama... Sell. It feeds on itself. It happens more than most folks realize. A few months back a fed report was due out. Split seconds ahead of the release, the minutes were already being fed into the computers. The market dropped hard, two seconds later it moved up fast... Then dropped hard again... Then moved up and settled down. The funny thing was watching it happen a split second before certain key words were read from the minutes.

Yep... I day trade. Moments like that can be real fun... And a terror at the same time. The average investors have no chance of keeping up with these computers. It has gotten so crazy, they actually compete to set up "terminals" closer to the exchange so they can feed the info into the computer milliseconds ahead of other computers. By the time folks like myself or the average investor see the movement, we are looking at history.