Knight Capital (NITE) was about to introduce a new program to take advantage of all the money with HFTS. They had ten computers (Please forgive my lack of tech savy) or mainframes trying to take advantage of rapid-fire stocks. Instead of making money, NITE lost almost $450 Million because they did not know which of the ten computers was buying all the stocks wildly. Like us Average-Joe Traders, NITE was stuck holding the losses and could not bust their trades due to computer malfunctions. I took a class where Ameritrade's CEO is interviewed on Risk Management and making sure they do not end up blowing it badly like Knight Capital did. I think when I posted the remarks about Knight, some did not understand what I meant about Risk Management shutting down all the computers, it was only one computer that caused Knight to lose $444 Million and ownership of their firm to Citadel Capital like Etrade did. Not all watching of Brokerage Accounts is bad, if Schwab and Etrade had not liquidated those accounts I mentioned they would have lost over $1,000,000 instead of the loss they cut those accounts to. Some individuals are privy to 10x leverage with Brokerages intra-day, I am not one of those out of fear of loss. http://www.bloomberg.com/news/2012-...-sealed-by-new-rules-on-canceling-trades.html In 2002 I bought 20,000 shares of Night Capital when they imploded from $5 to $1.50, I bought at $2.00 and had the trade busted which sucked. I bought Emulex when it fell from $120 to $38, I had that trade unfairly busted too. It's not fair we as Traders who provide liquidity can have trades ripped off because Market Makers screwed up, we took the risk and had our reward taken from our teeth. I bought 2000 shares of Emulex when a false AP Story was sent out and Traders reacted to a fraudulent "Restatement Notice" with plenty of spelling and typo errors. The kid was Short ELX and after he hacked into the AP or had the AP pick up the story, ELX fell from $124 to $38, we who bought ELX were screwed over when Nasdaq busted our trades.
Don't have the time to read the full thread now. But if I understood it right, Tradestation rented a house in his neighbourhood to steal a file from him? ROFL, this thread is very entertaining If a postman approaches his house, or the milkman, he never can be assured if it is the REAL postman or milkman. He always suspects a Tradestation employee behind all that.
Reminds me of: When I was a kid, my father knew a guy that said there was ninja turtles in his attic. So my father packed the pistol and went over to check it out.. thought maybe by chance there was an intruder or something. It turned out the guy was using about an 8 ball and a bottle of tequila PER DAY..