How a phony tweet and computer trades sank stocks

For a few surreal minutes, a mere 12 words on Twitter caused the world's mightiest stock market to tremble.

No sooner did hackers send a false Associated Press tweet reporting explosions at the White House on Tuesday than investors started dumping stocks eventually unloading $134 billion worth. Turns out, some investors are not only gullible, they're impossibly fast stock traders.

Except most of the investors weren't human. They were computers, selling on autopilot beyond the control of humans, like a scene from a sci-fi horror film.

"Before you could blink, it was over," said Joe Saluzzi, co-founder of Themis Trading and an outspoken critic of high-speed computerized trading. "With people, you wouldn't have this type of reaction." Continue reading "How a phony tweet and computer trades sank stocks"

Join Us On Facebook and Twitter

Like MarketClub on Facebook today and keep up with all of our updates, webinars, videos, and market updates all in one place, plus we have added Twitter to help our members profit by sharing Trade Triangle Alerts as they happen and developing news stories that can help you profit.

So what are you waiting for? Come join us today!

Every Success,

The MarketClub Team

Poll: Dot Boom = Dot Burst, yet again?

Yesterday I came across an interesting article about all of the upcoming dot com IPOs and thought it posed a great question to put to all of our Trader's Blog readers.

In case you're out of the loop, there are quite a few dot coms coming to the market including internet coupon giant Groupon, travel site Kayak, as well as social media megastars Facebook and Twitter.

Will this be a repeat of the dot com boom and subsequent burst of 1999 that lost investors millions. Have the dot coms (and investors) of the 21st century learned their lesson? Will you invest?

Which, if any, of these soon to debut IPOs will you invest in?

View Results

Loading ... Loading ...

*You may select more than one answer.

As always, feel free to leave your comments below.

Jeremy
On behalf of the MarketClub Team