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They say that stocks go down during the day and up at night

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151–154 of 154 posts

Re: They say that stocks go down during the day and up at night

#151

Earlier quoted context omitted.

I buy all the groceries I need for a week. That's realistically achievable (cost, cargo capacity of my vehicle, storage capacity at home, etc.). I buy all the groceries I need from now until the end of time. That's not realistically achievable, from any perspective. Allocating all the memory you need for a day is realistically achievable. Allocating all the memory you need until the end of time is not realistically a…

The grocery analogy doesn't work. When you're "done" with a particular "grocery", it's gone. It doesn't exist anymore. When you're done using a block of memory, you can use it again and again and again. Assuming you remembered to free it. Groceries work more like write-once memory. Still sounds like a leak to me.

It's a "leak" only if it creates problems for you, such as slowdown or risk of running out of memory. In this case, there are no such problems - memory use and execution time are both bounded. The memory gets automatically reclaimed when the program restarts (that's the job of the OS, and if it fails at it, you can always reboot the machine).

It's a perfectly fine way of engineering a system.

There's also a variant of this that's been used on missiles - basically, you put enough RAM on the weapon to guarantee it'll hit its target or run out of fuel before running out of memory.

Re: They say that stocks go down during the day and up at night

#152
post #83

Earlier quoted context omitted.

>Closing the market gives participants time to do various kinds of admin related to trading. Trading firms can restart their software to fix the memory leaks.

Restarting software once a day to work around memory leaks is real amateur-hour stuff. Mine does it every 10-20 minutes.

The real pros generalized this concept into so-called "supervision trees" - building your system as a hierarchy, where whenever a program misbehaves in any way, it gets restarted by a higher-level program, which itself will also be restarted if it can't get a handle on things, recursively to the top of hierarchy.

(Yes, talking about Erlang/OTP here.)

Re: They say that stocks go down during the day and up at night

#153
post #142

Earlier quoted context omitted.

It's not an anachronism. Liquid markets behave verrry differently from illiquid markets. In liquid markets, "AAPL is $141.23" makes sense. It means that you can expect to buy and sell almost as much AAPL as you want at very close to that price because there are loads of buyers and sellers near that price. You can pretend that AAPL stocks have a price like a lamp at home depot: "I would like 2 AAPL please" is a safe t…

Bots wouldn't be required to provide liquidity during night hours. People living on the other side of the world will do just fine. We live in a global world now and people can buy stocks wherever using the internet, not just in the physical exchange like in the old days.

...and they can trade after hours just like anyone else who jumps through the minor hoops, yet crazy price action after hours is still an observational facts.

Re: They say that stocks go down during the day and up at night

#154

There are several explanations for this phenomena: * The largest moves in price occur after quarterly earnings announcements, which are released after-hours. Same with other material announcements. * Prices are more volatile after-hours because there are fewer market participants. Because the order book is smaller, the same sized trade will have a larger effect on price after-hours compared to during trading hours. *…

> holding overnight confers more risk, which will be rewarded by the market with higher returns. That’s really not how risk works.

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