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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (105562)	4/14/2014 6:59:30 PM
From: Maurice Winn	Respond to of 217820

Good idea: <I have heard people like Cramer comment well you can no longer uses stop losses.> Selling something at less than you think it's worth is a bad idea. There are millions of things which were done for hundreds or thousands of years but which become obsolete: <We have a hundred years of the concept of risk control being assisted with stop loss orders.> Stop Loss orders introduce risk, they don't reduce risk. My plan was to do the opposite - put in buy offers at about 10% less than current market prices in the hope that a flash crash would come my way. But the authorities decide to cancel trades which would be a disaster for me and hand even greater profits to the million mile a minute supersonic computers which would enjoy having their trades canceled if they didn't work out. There's no reason to try to ban fast computers. <<IF Hi Frequency Trading is causing flash crash.... then it needs to be prohibited.> It's definitely the cause but flash crashes are no problem. If a gang of computers parks at the end of my driveway and starts trading derivatives on the market price of my house at supersonic high speed, I don't care. If they put a sign up saying "Current market price now down 10%", it doesn't matter to me. If I decide to sell my house, I don't have to accept an ephemeral low price. I just set the price at what I think it's worth and when the HFTs have finished their fun five minutes later, the price will go back to actual market values. I don't want to pay a government department to establish a bunch of rules and regulatory wastrels. Don't confuse capitalism with money: <HFT, the insane Central Banking practices that have evolved and the huge debt mania ... may well be able to collapse the Capitalist system at the rate we are going.> Capitalism is private enterprise and the accumulation of capital which is productive assets. Money is just a measuring stick and temporary store of value. If there is a collapse, it will be political MADness confiscating private assets and introducing suffocating rules which stop private enterprise. MAD = mutual assured destruction. If free market money replaces central banks it will be good for capitalism, not bad. Central banks are running communist money systems and communism doesn't work. In the end, communist things are destroyed by lazy bludgers helping themselves to the profits of control. Mqurice