has computer stock trading gone mad?
i was watching a little news blip on PBS tonight on computer stock trading---all i can say is !
these computer set ups are buying billions/ trillions of dollars in stocks holding them for less than 20 seconds then dumping them. that is long term?--LOL!
the average trade is bought and sold in 1-20th of a second!
and the time it takes the computers to get in or out of a stock is like .005 milliseconds!
these computers get their tips from watching things like internet trends using various web-spider programs. imagine 'face-book" full of web crawlers! LOL
the computer don't know what it is buying or selling all it knows is the up or down numbers and trends.
now the PBS newsman was like all is fine and dandy.
i am thinking it would not take much to set off a panic or a bull-rush.
whoever gave this news story to PBS left out that such computer trading systems could manipulate stock prices either up or down and a malfunction or software problem might cause a panic.
i suspect right now the program traders are pushing the market UP--but what is going to happen WHEN they decide to take the cash and run?
everybody else is going to get holding the bag.