Saturday, December 18, 2010

Stock Market Game is Rigged: Attack of the 'Bots

I can't link or quote - because it's not online yet, but the very latest issue of wired magazine has 2 (or at least 2) very interesting bits of information relevant to investing individuals.

Buy the 'artificial intelligence' issue and look for the article 'Bull vs. Bear vs. Bots'. It won't help you understand why markets behave they do - it will make you come to terms with the fact that you CANT understand it because it was programmed that way.

Another bit found - in the 'Jargon Watch' mini-section (page 38), look for 'Quote Stuffing'.

Makes you realize that 'trading' is a fixed game - and the house always wins. Or is at least programmed to - can you beat the machine?

(cross-posted on Thrifty Trend)

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