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Trading halted as U.S. stocks plummet

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Re: Trading halted as U.S. stocks plummet

#551

Post by rat9988 »

kick wrote: post #286
isoskeles wrote: post #196

Earlier quoted context omitted.

> Only a single L1 or L2 breaker can occur in a single day. Then why does L2 exist? It seems redundant, L1 would get triggered before L2, and only one can occur in a single day, so why have L2 at all? What am I missing here? Edit: Also, anyone who downvoted me for posting the same question as someone at the same minute, you know what to do.

No matter how much you didn't deserve downmodding, complaining about them only invites more. You have a better chance of recovery by not bringing them up, and the News Guidelines ask that you don't. Please don't comment about the voting on comments. It never does any good, and it makes boring reading. https://news.ycombinator.com/newsguidelines.html

Your paragraph was a lot more annoying than his sentence.

Re: Trading halted as U.S. stocks plummet

#552

Post by pcurve »

1121redblackgo wrote: post #365
Frost1x wrote: post #348

Earlier quoted context omitted.

>Bear markets are paved with the blood of optimists. I'm going to shamelessly borrow this.

I wonder if the inverse rings true as well. Bull markets are paved with the blood of pessimists.

count me into that bucket. I know of many other too. :-(

Re: Trading halted as U.S. stocks plummet

#553

Post by Der_Einzige »

kick wrote: post #286
isoskeles wrote: post #196

Earlier quoted context omitted.

> Only a single L1 or L2 breaker can occur in a single day. Then why does L2 exist? It seems redundant, L1 would get triggered before L2, and only one can occur in a single day, so why have L2 at all? What am I missing here? Edit: Also, anyone who downvoted me for posting the same question as someone at the same minute, you know what to do.

No matter how much you didn't deserve downmodding, complaining about them only invites more. You have a better chance of recovery by not bringing them up, and the News Guidelines ask that you don't. Please don't comment about the voting on comments. It never does any good, and it makes boring reading. https://news.ycombinator.com/newsguidelines.html

I just gave him an upvote because that rule is stupid and should be changed. No, you SHOULD call people out for this BS

Re: Trading halted as U.S. stocks plummet

#554

Post by eanzenberg »

cletus wrote: post #315

So, children of summer (there are many here who have only known the longest bull market in the last century), let me give you some free advice. If you're looking at this and wondering when to get in, to bargain hunt essentially, and you're asking yourself questions like "today? next week?", you need to step back and think again. Some points to consider: - If your time horizon is 10+ years out probably none of this ma…

The only people who lose money are selling in a panic (or buying during a rut). CV has been with us (in the western world) for months now, and people haven't been dropping dead. So unless you believe 2% of the world will die then sure, buy your bunker and your guns and ammo and wait it out. If you are a bit more level headed, you can't go wrong with buying and holding now (and when times were/are/will be) good again.

^For entertainment purposes only, this is not financial advice.

Re: Trading halted as U.S. stocks plummet

#555

Post by raydev »

1121redblackgo wrote: post #365
Frost1x wrote: post #348

Earlier quoted context omitted.

>Bear markets are paved with the blood of optimists. I'm going to shamelessly borrow this.

I wonder if the inverse rings true as well. Bull markets are paved with the blood of pessimists.

Maybe I'm misunderstanding, but there's no blood from the pessimists since they don't really lose what they have. They just miss out.

Re: Trading halted as U.S. stocks plummet

#556

Post by pjkundert »

akhilcacharya wrote: post #547
pjkundert wrote: post #533

Earlier quoted context omitted.

We’re about to discover that uncontrolled immigration != societal regeneration, unfortunately.

Is that why American society declined in the early 20th century when there were effectively open borders? Oh wait, no it didn’t.

A 3-month harrowing journey into unforeseen circumstances is an excellent filter, indeed.

Please do not be flippant or purposely obtuse.

Re: Trading halted as U.S. stocks plummet

#557

Post by senordevnyc »

aazaa wrote: post #531
cletus wrote: post #315

So, children of summer (there are many here who have only known the longest bull market in the last century), let me give you some free advice. If you're looking at this and wondering when to get in, to bargain hunt essentially, and you're asking yourself questions like "today? next week?", you need to step back and think again. Some points to consider: - If your time horizon is 10+ years out probably none of this ma…

Don't forget the part where the Fed swoops in, making a murky situation even murkier with market manipulation. Expect a massive rally when the Fed announces QE4. Buy the rally at your own risk. The largest DJIA rally in history (15.34%) occurred in the middle of the Great Depression in 1933. Second place was yet another Depression-era rally of double digits. https://en.wikipedia.org/wiki/List_of_largest_daily_changes…

Expect a massive rally when the Fed announces QE4.

Let's hope, good chance to scoop up some cheap(er) put options.

Re: Trading halted as U.S. stocks plummet

#558

Post by theincredulousk »

the_gastropod wrote: post #466
tempsy wrote: post #350

Earlier quoted context omitted.

The end game is to save the value of my account without having to sell holdings I want to keep long term for tax reasons. I'm up 8% for the year instead of down 15%.

Maybe you really are more clever than the rest've us, and have beat the market. Or maybe you got lucky. Or maybe we're only hearing about the winning trades, and you've got some losers we're not hearing about... I suspect it's option 2 or 3. Regardless, this is bad advice.

It isn't bad advice to hedge your position with options, although doing it short term as suggested here is an active trading strategy and inherently more risky.

Contrary to popular belief that options = gambling, this is the #1 real utility of them. If 90% of your investments are tied up in S&P 500, it makes sense to hedge that with put options which provide a clearly defined max-loss over the contract duration of the option.

So in a period like this when those put options become valuable due to price drop and general IV, you can do as suggested and sell them to re-coup losses and maintain capital. It doesn't change the lifetime performance of your money placed in the corresponding security, but it most certainly improves the performance of your portfolio as a whole and limits the damage that can be done in any given downturn.

If you only hold securities, index or otherwise, your only recourse is time. I certainly wouldn't recommend trying to time the market, just like I wouldn't buy an insurance policy the day before a loss. That doesn't mean you avoid insurance altogether because you can't predict when you'll need it.

Re: Trading halted as U.S. stocks plummet

#559

Post by tomatocracy »

SubiculumCode wrote: post #406
Frost1x wrote: post #383

Earlier quoted context omitted.

To address OPs point, someone did do this. Someone (or more accurately, a lot of people) stepped in and introduced an artificial construct that constrains trading under certain conditions. It's not intrinsically a "bad" thing per se and it was something already established long before the current set of conditions arose. But none the less, it's an artificial constraint introduced on trade systems that is likely benef…

To those who believe that all markets are rational and efficient, that interventions cause more harm than good, y, an enforced halt seems to be anti-capitalist. But we are not rational actors. We can get into panics. Panics can stir more panic. Forced breaks allow for the market to reassess data for a few minutes without fear of loss for not acting immediately.

The circuit breakers also have an important function in relation to the role algorithmic traders play - it allows a bit more time for humans to step in and either switch off or tweak the algorithms if appropriate.

Re: Trading halted as U.S. stocks plummet

#560

Post by idclip »

Frost1x wrote: post #402
1121redblackgo wrote: post #365

Earlier quoted context omitted.

I wonder if the inverse rings true as well. Bull markets are paved with the blood of pessimists.

So do the meager realists get to avoid bloodshed? Or, better yet, capitalize on the blood of pessimists and optimists?

Hodl, fren. Hodl.
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