Flash crashes are like plane crashes. They can kill (a trading account or life respectively) but they are also extremely rare. If you consider how many trading minutes of every trading day of every trading year the markets have existed and then factor in so-called crashes. Just like aviation. But unlike in aviation a {trade} flash crash can also be profitable if the trade happens to be in the right direction and a stop got them out before reversal.
I appreciate what your input of course but plane crashes are a terrible parallel. The plane crash could be used to parallel the day trader.. because if a day trader get's caught up in a flash crash and loses then yes it is very similar to a plane crash because he BOUGHT the ticket to take the ride. However, the largest majority of people and MONEY involved in the market are MOM and Dad investors and people who work for public companies. Now why should they be at risk and also be hurt in a massive flash crash? they are not even on the plane. Maybe an earthquake or tsunami would be a better example.. those who live on the coast now the risk. This type of risk should be mitigated before it ever starts. Tough to get long when you know today could be the day we falsh n crash
Mom and pop investors are hodlers not bail on a crash types. Their money for the most part are stuck in funds, not individual trades.
stuck in funds? no.. not really stuck by any means.. and it is very easy to sell now a days. you just go online and put in the order.. no voices no broker no advisor telling you to hold or buy more.. just selling. People are saying..well what if 2008 happens again? hmmm.. let' just et out honey.. 3 % in bonds isn't that bad.
Stuck in funds by their choice. Investors are group think personified. Right over the next cliff. Always have, always will.
The Role of Visual Analysis in the Regulation of Electronic Order Book Markets. https://www.financialresearch.gov/s...sinRegulationofElectronicOrderBookMarkets.pdf There are some interesting ideas and examples in this paper in terms of visualizing financial data. There's also validation of the cancel order moving markets hypothesis.