"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder


Tuesday, May 25, 2010

Friday, May 21, 2010

"Flash Crash"

"...hundreds of stocks and exchange-traded funds lost as much as 99 percent of their value and then fully recovered in a 20-minute period." (well, kind of!)
see: Reuters
see: Fixing Fat Finger Fantasies

The Wave(s) Down


“The best place for most people to be is in cash”

see: Prechter

Saturday, May 1, 2010

Monk of the Month


Your comments,
tips and prognostications.

(Click on image to discover parable)
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What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?


"... internalization hurts retail customers and market quality"

see: EconPapers

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