
Internet Bots: Anatomy of a Stock Selling Frenzy  - iamelgringo
http://www.hothardware.com/News/Internet-Bots-Anatomy-of-a-Stock-Selling-Frenzy/
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dant
The same thing could happen with people, someone finds an old story but
doesn't realise it's old, tells a few people, starts a rumour and then traders
sell off stock. At least with an automated system you can improve the
algorithms.

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jwilliams
Yup - like the occasional trader that misses a decimal point and sends a stock
whirling off in the wrong direction (most trading systems have mechanism to
prevent this, but it still crops up now and then).

Whilst this is an unusual case - 99.99% of the time the access and currency of
information available today actually makes for a much improved market.

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ryanwaggoner
Best line from the article:

 _"a non-detail-oriented securities analyst summarized the article (apparently
without reading it first) and uploaded the summary to Bloomberg."_

Should read: _"a lazy and now-unemployed securities analyst..."_

~~~
cdr
There has been no report of the analyst in question being fired.

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steveplace
"Automated trading systems start a massive stock self off based on the old
headline..."

Quant firms played a very little role in the selloff. It was retail and some
institutional investors seeing the headline come across on their Bloomberg
terminal and immediately start dumping shares.

~~~
furiouslol
It probably accentuate the sell-off. Trading signals were probably fired after
the initial drop-off.

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ComputerGuru
On that subject (more or less): Can anyone recommend a good, reputable online
stock brokerage?

~~~
steveplace
Good:

\- Thinkorswim [the one I use]

\- Interactive Brokers

\- OptionsExpress

\- eSignal

\- NinjaTrader

Bad:

\- etrade

\- scottrade

\- fidelity

~~~
brentr
I used to work at Banc of America Investment Services before I quit to go back
to school. I can safely say that I would never do business there. Unless they
have cleaned up their act in the ten months I haven't worked there, the place
must still be a mess.

