Stock Market Reading
// Posted by Caitlin on 06/06/2015 (1:35 PM)
As I read through the reading this week, one major statement stood out to me that I was surprised I’d never thought of before. When reading through Raging Bulls, it said, “In what some might consider a case of karmic justice, sharks threaten the financial industry by biting its cables, attracted by the electromagnetic fields generated by the wires that power the amplifiers at intervals along their length.” I was shocked that I hadn’t previously thought about sharks being a huge threat to our underwater cables.
I don’t know about others in this class but I knew very little about the Stock Market and trading in general. After reading Raging Bulls, I feel like I have a better understanding of our trading actually works. Because of movies, I always got the impression that the Stock Market was a place where a bunch of rich men stood in their fancy suits, waiting for the stocks to sky rocket so they could cash in.
I think one of the most important parts of the HFT article that I’m having a hard time understanding is if we transition HFT to a computerized tool, will there still be a Wall Street as we progress? If the Stock Market was moved to the Internet, how would they prevent hackers from getting in? I have no idea how the stock market really works and really no interest in it. I just see it as another form of gambling.
I found this video and it helped me understand the concept of HFT. When we say the words High Frequency Trading it tells me that it’s going to be fast but I think this video shows just how fast it is. It makes me wonder how often traders are missing out on an opportunity.