Financials Matter

"It's Not Just About Finance"

Small Investors Nightmare…Algos Going Rogue

For those of you unfamiliar with the word Algos, it’s the nickname for Algorithmic High Frequency Traders aka: HFT’s.

Algos are computers that trade billions of dollars in nanoseconds.  (Think 100 times faster than you can blink)

Remember that speed the next time you think you can compete with the boyz in the Wall Street “Club.”

You simply can’t compete, literally.

The boyz even bribe the regulators so they can set up their computers right next to the stock exchanges.   It gives them that extra “fraction of a nanosecond” over their competitors.

It’s enough to make you wonder who’s running the show.

Do you remember Arnold Schwarzenegger (the cyborg assassin) from the 1984 movie “The Terminator?”

At the end of the movie, the computers had “taken over” and all hell was breaking loose.

Well, here we are 34 years later and the computers on Wall Street have taken over.

So far, things still seem to be under control.

But what happens when the Algos (computers) go rogue?  Do you think you’ll be able to do anything about it?

Hardly.

I know…I know, some of you are going to tell me: ”Yeah, but…they have safety measures in place to prevent that sort of thing from happening.”

Really?  Do you honestly believe that?

Have you ever considered that by causing a panic (real or fake) the boyz are able to steal more of your money and blame it on computer failure?

It’s happened before and will happen again.

The $64 Billion question is:  “How are you prepared to deal with it?”

Wall Street’s “cyborg assassins” strike with unexpected “Flash Crashes.”  And you can expect more of them in 2018 as the Algos go rogue.

Instead of losing, learn how to profit from them (HERE).

 

Translate »