Does what happened today scare you?

Do you mean Obama? Yeah,pretty scared!

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Aren't you nervous that a mistake by one smuck causes the DOW to plunge a 1000 points.

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No. One mistake like that every hundred years or so is a pretty good record, IMO.

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Is that the definition of a healthy tradable market?

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It proves how liquid the U.S. stock market is. The stock markets in some countries around the world trade fewer than a few thousand or even hundred shares a day. That would NOT be a "healthy tradable market."

But maybe it should. If one mistake by one person brings down the house of cards, do you feel confident that money invested in the stock market is a good thing especially for people in retirement accounts? They just got arse f'd a year ago. Do you think they are calling there brokers to get there money out?

If I was smart enough to comprehend how and what happened and knew the ramnifications of it then I would probably be scared.

It's my understanding that P & G was selling more than what they wanted to, but I don't understand why the Dow would drop a 1000 because of it.

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tammanytiger91

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You are acting like this actually could have bankrupted the markets.

Do you understand what actually happened?

I'm not trying to be insulting, but it's pretty clear you don't.

It only takes one trade to decrease the "price" of a stock. if the next trade is normal, then the "price" goes back to normal.

The only people that were hurt here are the retarded people that made those really dumb singular trades. It cannot be sustained over long periods.

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If one mistake by one person brings down the house of cards

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There was much more to it than this. Pretty much +1 to what Russian just said.

I am not talking about people who trade and are in the business. I can tell you my employees knew that market was down big time before I did. so did my patient. These are just average people but they are nervous as hell. I know there are other issues involved, but the average person just sees the headline. There are are way more averge people than informed people like you. Their money is in the market also.

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It's my understanding that P & G was selling more than what they wanted to,

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Not PG the company itself, but someone who put in an order to sell PG stock.

The story as it now stands is the the sell order was magnified by 1,000X. That caused PG to drop...by almost $20...in just one trade or (tick). A one dollar move of any DJ 30 industrials stocks is = approx. 9 points on the DJ average. So with a $20 down move by PG, which is a DJ stock, the Dow Jones average dropped almost 180 points almost instantaneously.

That drop triggered automated (computer) sell programs. It also triggered some long standing "stop loss" orders, driving the DJ down even more. It may have caused some margin calls (meaning some investors who had borrowed money to buy stocks using the stocks as collateral had to sell some stocks to repay the money they borrowed to buy them.)

But it is not clear yet if there were any significant margin calls. But I would not be surprised if there was.

Anyway, when everyone realized it was all due to PG getting killed in what had to be an error trade, people started buying. I tried to buy several stocks but every time I put in a buy order at a limit price, the market had already gone up higher than my limit price.

That is why the market went back up so fast...almost 600 points within 20 minutes.

It was EXCITING!!!

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Don't the brokers have to give you a certain amount of time to meet the margin call?

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Probably, but I've never had a margin call (thank goodness) so I really don't know. I remember in the crash of '87 margin calls were being made intra-day but the rules may have changed since then.

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That's for the suckers. The real money was in accenture.

Link

Up 410,800% from it's low today.

Had you invested 1000 dollars at it's low, you would have $4,109,000 right now.

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Damn, what caused that?