3 ms·
> Circuit breakers, like many finance regulations, are intended to address the emotion-driven aspect of prices as perceived by humans, but should not be necessa
by baking 7y ago
> Circuit breakers, like many finance regulations, are intended to address the emotion-driven aspect of prices as perceived by humans, but should not be necessary as trading becomes more algorithmic and less superstitious.
I was under the impression that algorithms were created by humans.
- resters 7y agoThey are, but most exploit profit opportunities introduced into market prices by human actors. If humans were rational, there would be just as many people betting against stocks as betting on them. The idea that upward price movement is always good is also misleading. A price can be irrationally too high, so corrections are good. Most of the conventional wisdom (and typical lexicon) about markets is laden with superstition and bias.