lilredrooster
lilredrooster
Joined: May 8, 2015
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January 30th, 2018 at 3:26:48 AM permalink
spoofing. maybe not so new but much more of it now because of algorithm based computer trading.

spoofing is selling in an amount large enough to cause a price drop and then immediately buying back at a lower price

the story refers to futures contracts but I'd bet it happens a lot in equity trading too

https://www.washingtonpost.com/news/business/wp/2018/01/29/u-s-regulator-doj-announce-spoofing-charges-against-european-banks/?utm_term=.ec9c2e845309
"𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳"______Edgar Allan Poe
OnceDear
Administrator
OnceDear
Joined: Jun 1, 2014
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January 30th, 2018 at 5:22:26 AM permalink
For Non-subscribers of WSJ, you can open that link in an incognito window to sidestep the paywall.
I'm surprised this sharp practice gets any attention, let alone penalties. Surely all we minnows know that here are sharks in the sea. Computer driven trading, even as premeditated as this is probably just a fact of life.
Beware. The earth is NOT flat. Hit and run is not a winning strategy: Pressing into trends IS not a winning strategy: Progressives are not a winning strategy: Don't Buy It! .Don't even take it for free.
Hullabaloo
Hullabaloo
Joined: Nov 30, 2014
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January 30th, 2018 at 6:46:38 AM permalink
Quote: OnceDear

Computer driven trading, even as premeditated as this is probably just a fact of life.



In October that took another step forward with AIEQ, the Artificial Intelligence Equity ETF.

BOYD is currently their 8th highest holding, but as I recall it was 3rd about a week ago.
TigerWu
TigerWu
Joined: May 23, 2016
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January 30th, 2018 at 8:44:57 AM permalink
Does this screw me over if I'm a "buy and hold for 20 years" type of investor?
lilredrooster
lilredrooster
Joined: May 8, 2015
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January 30th, 2018 at 10:36:08 AM permalink
Quote: TigerWu

Does this screw me over if I'm a "buy and hold for 20 years" type of investor?




not much. even less if it's mutual funds. it's those who actively trade that are getting screwed the most. the more they trade, the more they get screwed. if they have a great talent in trading then it makes sense for them to trade. if not they're going to get creamed.
"𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳"______Edgar Allan Poe

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