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No more “market” or “stops” orders. NO MORE TRUST in markets after yet another flash crash that brought Apple shares down 9% for a few minutes March 27, 2012

Posted by deminvest in investment.
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flash-crash or ripoff for little investors?

How to avoid the ripoff?

Hard (bad) facts:

  • On Friday, 23 Mar 2012 Apple shares lost 9% of their value in seconds, due to some market “error” called “Flash Crash”.
  • the Flash Crash, also known as The Crash of 2:45, was a United States stock market crash on May 6, 2010 in which the Dow Jones Industrial Average plunged about 1000 points—or about nine percent—only to recover those losses within minutes.

Now I imagine myself having put a stop loss that is met in seconds, or I imagine putting a sell order at market price. I would have sold 9% under market price. Then I’d have started sending fire emails to my stock broker. I’d also have writen a Blog Post about it. But my money would have gone down the flush.

What Can I do about it?

  1. No preset authomatic orders like “Stop” Orders
  2. No more selling or buying at “market”. From now on I’ll always set a limit for my trades

Source:

http://www.cnbc.com/id/46835129

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