HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
21 trades shouldn't be enough to drive a stock's price up or down by 23%
but that's exactly what the current volatility has created in the market and as I've said before, the only ones profitting from this are those who are trading based on an IRC ticker and following the movement, thereby driving a stock's price up/down even further. Used to be that it would take a lot more than that to move a stock of $10 or less up/down that much... usually, it would require news. Now, with the current volatility, one person can reverse something long/short after 3AM, and that one trade is enough to make a stock move at reset, everyone else jumps on and soon enough, that low-priced stock has moved up or down a lot more than before. This is why we're seeing stocks priced in the $30 moving so much over the course of the day and sometimes moving up and then down at reset, because those who trade using this method (and those who trade based on the movement of an IRC ticker) know they can make back their commission within minutes or faster.
I would suggest:
a.) turning up the volatility at reset, make it so that it requires more trades for stocks to move between certain periods where the market is normally domant. (It's generally the exact same 20 traders who are making money by IRC reset trading and most of them have billion dollar ports. Why are the rich traders profiting from this system, making it harder for newer traders to make and keep money? Why has a system been created so that those who have profitted not from any skill except their ability to follow a ticker can make even more money than they did before?)
b.) turn off the XML feed within certain hours, particularly during the hours before/after reset. Surely something can be programmed so that if nothing else, traders will have to refresh their port or market lab in order to see how things are moving rather than getting instant information as soon as something has ticked up or down (or reversed... this is why stocks like MPRN3 might go up 44 cents at reset and then immediately drop $1 or more)
c.) Put a 5 minute delay on trades going through between certain hours before/after reset. This will mean that those who choose to reset trade won't be able to take immediate advantage by buying as soon as they see a tick up/down on their ticker and have to follow the same issues faced by other traders (and reset traders) who use natural means of following stock movement.
Any of the above will create a much more natural market where a small group of reset traders (roughly 20) aren't driving prices up or down by large amounts due to the current volatility and the market will be back to how it used to be where it was a game that actually involved skill and logic to be able to do well at it.
Thanks
21 trades shouldn't be enough to drive a stock's price up or down by 23% Dec 28, 01:07
If HSX really wants to change the game then do something that changes the game for the better. Dec 28, 01:22
I brought up circuit breakers idea a while back and was essentially boo-ed for it... Dec 30, 06:38
You can make commission back when cheap stocks move as much or more than more expensive ones. Dec 28, 11:24
Certainly, but not all that many "cheap" stocks move at reset and commission can be killer on the rest. Dec 28, 20:59
Just thought I'd add my H$0.02 cents... Jan 07, 13:26