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Who cares if stocks flash crash? If you're buying stock for short term profit you deserve to be screwed by volatility and I have no sympathy for you.
by aianus 11y ago
Who cares if stocks flash crash? If you're buying stock for short term profit you deserve to be screwed by volatility and I have no sympathy for you.
- josu 11y ago>If you're buying stock for short term profit you deserve to be screwed by volatility and I have no sympathy for you These people increase market liquidity, they too serve a purpose. If only long term investors were in the market, the exchanges would end up looking like ebay.
- netrus 11y agoWhy would that be a bad thing? (honest question)
- mrchicity 11y agoBecause most people have things they'd rather do than playing trader when their expertise is in something else. Being able to trade in and out of assets at a fair price at any time is valuable. Would you rather have your net worth tied up in a liquid index ETF or illiquid startup equity?
- toomuchtodo 11y agoIf I need the cash more than a few years out, whichever provides the highest return, like all long term investments.
- canes123456 11y agoWhat if you have a stop loss order?
- lotharbot 11y agowhy not use a stop limit order? It's kind of like setting a reserve price on ebay -- sell if you want to get out of a particular position, but not if the price gets to be too low.
- __d 11y agoIn a little more detail: A 'stop loss' order will sell once the share price falls below a threshold. It will sell using a market order, meaning whatever the current best price might be. A 'stop limit' order will sell once the share prices falls below a threshold too, but will sell using a limit order, setting a minimum price that you're prepared to be paid. In a crashing market, stop loss orders can result in you selling stocks for pennies, regardless of their rational worth. Stop limit orders protect you from excessive price drops.