Stop loss and may 6 2010

Discussion in 'Trading' started by businessstaxes, Sep 29, 2010.

  1. businessstaxes

    businessstaxes Guest

    the SEC is blaming stop loss selling on may 6 2010 for the flash crash.

    well the blame isn't in stop loss, the market participants want to sell and there are no bids. it's the investors problem for putting a market sell order when there is no bid.. i doubt it was a puny retail investor that can crash the entire market. it's the problem of the retarded investor who did a market order but there is a 1 cent bid not the gov't problem.

    i've seen this in penny stocks only 500 shares on the bid and if somebody was to put a 1000 share market order it would wipe out all the bids...same as the market..if some large hedge fund was to do a 10 billioon market order it will crash the market. as the daily market liqjuidity is less than 1 billion in the float. welcome to free markets,,the fact that the price went back up proves free market work.

    the market is same level as 2005/2006 when the economy was booming now this is gift from the FED giving free money to wall street...it's the fed who is holding this market with liquidity..it' has nothing to do with fundamentals of these companies or future investments. basically transferring wealth from fix income investors to equity investors...gov't isn't in the business of price fixing or transferring wealth. from poor to rich. the fed or gov't isn't in the business of creating jobs either. free market capitalism works. communism when it comes to jobs and industry doesn't work.