“Flash Trading” is method where computers throw out series of small orders to see where limit orders are set. The goal of these machines is to trigger stops and then reverse price hard. The firms who do the trades get kickbacks from the Exchanges for the volume they do and the firms can also front run the trades and take advantage of the sudden price moves at the expense of their clients. The rumor is that Goldman is netting $100 million a day doing this crap.
PALM
I owned PALM going into this morning. I bought it at $13.83 on Friday, with a stop at $13.65
PALM opened weak this morning with the rest of the market and then had this mystery spike lower on very little volume to $13.62 and suddenly reversed back up.
I’m out 50 cents a share. I’m pissed. I got ripped off by the machines. On every position I take I have to worry about this stuff. But this is the reality of Wall Street 2009. It is simply my opinion, but the crooks run the show and we are all just monkeys fetching tips for peanuts.
End Of Day Update
PALM went nuts today. I am not happy. But this is what I have to deal with every day. The message at church this weekend was about controlling your anger. I tried real hard today to do just that. Ugh...
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