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Internet Bots: Anatomy of a Stock Selling Frenzy
- ryanwaggoner 18y agoBest line from the article: "a non-detail-oriented securities analyst summarized the article (apparently without reading it first) and uploaded the summary to Bloomberg." Should read: "a lazy and now-unemployed securities analyst..."
- cdr 18y agoThere has been no report of the analyst in question being fired.
- ComputerGuru 18y agoOn that subject (more or less): Can anyone recommend a good, reputable online stock brokerage?
- steveplace 18y agoGood: - Thinkorswim [the one I use] - Interactive Brokers - OptionsExpress - eSignal - NinjaTrader Bad: - etrade - scottrade - fidelity
- brentr 18y agoI used to work at Banc of America Investment Services before I quit to go back to school. I can safely say that I would never do business there. Unless they have cleaned up their act in the ten months I haven't worked there, the place must still be a mess.
- Goronmon 18y agoI use http://www.thinkorswim.com http://www.thinkorswim.com for mutual funds since you get 3 free mutual fund trades a month. I use http://www.zecco.com http://www.zecco.com for my standard stock trades as you get 10 free a month. Definitely not the most fully-featured broker, but it works and it's hard to argue with no-commission trades.
- furiouslol 18y agoGo with the cheapest - Interactive Brokers Damn I hate their security device though. It's kind of irritating to have to enter the security codes every time i want to make a trade. And if you're a frequent trader, it'll get on your nerve (on the flip side, it prevents over-trading)
- dant 18y agoThe same thing could happen with people, someone finds an old story but doesn't realise it's old, tells a few people, starts a rumour and then traders sell off stock. At least with an automated system you can improve the algorithms.
- jwilliams 18y agoYup - like the occasional trader that misses a decimal point and sends a stock whirling off in the wrong direction (most trading systems have mechanism to prevent this, but it still crops up now and then). Whilst this is an unusual case - 99.99% of the time the access and currency of information available today actually makes for a much improved market.
- steveplace 18y ago"Automated trading systems start a massive stock self off based on the old headline..." Quant firms played a very little role in the selloff. It was retail and some institutional investors seeing the headline come across on their Bloomberg terminal and immediately start dumping shares.
- furiouslol 18y agoIt probably accentuate the sell-off. Trading signals were probably fired after the initial drop-off.