The issue here is that the trading bots are just tools. The people who are controlling the trading bots are intending for them to produce the results that they produce. Outside of glitches, they are simply carrying out human intent efficiently.
Computer trading wreaks havoc on mutual funds on a day to day basis, week to week and month to month basis. Most people liquidate when they panic or when they need the money. You make decision to sell in AM and cross your fingers until the market closes in the PM. You donât know how you did until a couple hours after market closes.
Thatâs correct but doesnât solve the problem that their efficiency creates. Denying it is like denying 1+1=2. Spent decades in the biz.
Trading to make money, and not to actually invest in a companyâs success, is a zero sum game. Youâre basically trying to take the other traderâs money. So in this scenario, all thatâs really happening is that youâre preferring one advantage over another advantage. The advantage of having a highly skilled trader over an advanced trading bot.
From an investment perspective, if investing in a company helps that company grow itâs business and that investment, in the long term, provides value for shareholders⌠then investing is just solid as ever.
Arguing about the use of trading bots is more akin to arguing about using steroids in the olympics. Itâs the same sport, itâs just a matter of what arbitrary way we want to attempt to make it âfair.â
Thatâs a good comparison, but just to be clear my focus in this discussion is not about computers versus day traders.
Peace - I can siesta now.
Why canât they be based on now? A good company is a good company.
Based on absolutely nothing but words from a guyâŚ
Someone got squeezed.
Squeezed? I donât know what you mean.
Iâve thought about this for a long time.
The stockmarket has been fake more and more over many decades now. Policies over time reduce the system to smoke and mirrors.
The worse thing now now is that fraction reserve banking has been reduced to 0. Yes, the fed just said banks have to keep precisely ZERO of our deposits on hand.
Anyway, the stonk market is gonna collapse again. This rally is fake. Donât be the authorities or politicians, theyâre desperate.
What is âfakeâ? What is ârealâ?
Systems within systems. The âfree hand of the marketâ.
and money from the government
Day traders and swing traders usually trade using stop losses. Itâs easy to figure the levels where traders will put their stops. Computers can drive prices to these stop levels and then reverse faster than humans who are entering info manually can do. When traders also have to deal with trade fees, slippage and the difference between bid and ask prices, it makes it very difficult for traders to make money. Big institutions who use computers to trade can make lots of money on very small price swings. The system is definitely not fair for the average trader.
About the thread titleâŚ
Please close this thread.
The problem with your premise is that you need to dig to a deeper underlying factor. Computers simply exacerbate issues that already exist.
The true cause is coordinated fractional reserve monetary banking which, by constantly creating new money and credit, distorts market signals and leads to the consistent overvaluing of stocks.
