Stock Market Plunges 1000 Points by Error! (2 Viewers)

Njja

Njja

1st Lieutenant
Joined
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Messages
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How would you like to be this guy? It appears that someone hit the wrong button which caused PG (Proctor & Gamble) stock to plunge from $61 per share to $39 a share which contributed to a 1000 point decline in the market today!:eek:

It recovered to end the day down 347.....but I can only imagine this fellow has just joined the ranks of the unemployed!:eek:

How is it possible you ask? Actually it is quite easy, and I have done it myself! In my case I sold 2000 shares in the after market and simply put the wrong price in!:eek: I was lucky in that my shares went off far above my listed price which limited my loss.:eek:

Fortunately I was able to recover my shares at a considerable discount when someone else (I assume) made the same mistake a few days later.

Our stock market, the greatest market place in the world!:D
 
I read that a trader entered a "b" when they meant to use a "m" in the word "million."

I often make the same mistake myself :eek::D
 
jazzeum said:
I read that a trader entered a "b" when they meant to use a "m" in the word "million."

I often make the same mistake myself :eek::D
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.....................................................................................................

You do have to approve your trade before it is entered, but this becomes second natured when you do it all day long and it is easy to make a mistake if you don't take your time. I have only done it once in 35 years.......I would assume this fellow will not get to do it again while employed!:rolleyes:

There are supose to be trade blocks in place to prevent a sell off like we saw today.......so much for that. Most stocks had support which are automatic "Buy" programs that kick in when certain prices are reached. Since the recovery was so quick, you can bet many prudent traders made millions when these rock bottom prices appeared!

Hopefully things will return to normal, if not tomorrow, certainly by next week.:)
 
Lets hope that the guy in question doesn't get a job in a missle silo.:rolleyes: -- Al
 
lancer said:
Lets hope that the guy in question doesn't get a job in a missle silo.:rolleyes: -- Al
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He would be better off there actually. It does take two to trigger a launch, unless they have changed that since I left SAC.:)
 
Reminds me a bit of the start of WWI where countries were locked into timetables which took the decisionmaking out of the hands of those involved. Or the doomsday machine from Dr. Strangelove:

President Merkin Muffley: How is it possible for this thing to be triggered automatically and at the same time impossible to untrigger?
Dr. Strangelove: Mr. President, it is not only possible, it is essential. That is the whole idea of this machine, you know. Deterrence is the art of producing in the mind of the enemy... the FEAR to attack. And so, because of the automated and irrevocable decision-making process which rules out human meddling, the Doomsday machine is terrifying and simple to understand... and completely credible and convincing.
 
These rumors about yesterday's unprecedented market drop being caused by a single "fat finger" mistake by a trader are highly dubious.

Regardless, the trader in question would not be sitting behind a terminal in his basement trading for his own account. He was with a major firm (rumored to be Citi), probably on an institutional desk. Perhaps even on the floor itself.

Many trades from yesterday will get busted because they were executed based on faulty system data.
 
Combat said:
Reminds me a bit of the start of WWI where countries were locked into timetables which took the decisionmaking out of the hands of those involved. Or the doomsday machine from Dr. Strangelove:

President Merkin Muffley: How is it possible for this thing to be triggered automatically and at the same time impossible to untrigger?
Dr. Strangelove: Mr. President, it is not only possible, it is essential. That is the whole idea of this machine, you know. Deterrence is the art of producing in the mind of the enemy... the FEAR to attack. And so, because of the automated and irrevocable decision-making process which rules out human meddling, the Doomsday machine is terrifying and simple to understand... and completely credible and convincing.
Click to expand...
Great, great movie; true classic and just as insightful today (dispite the obvious advances in the particulars of the defense technology) as it was then. Amusingly, it was all too real about the SAC I was a part of for some years.;)
 
Yesterday a lot of German News (Spiegel, Stern, Focus, Welt, etc.) blamed the plunge, which affected the Asian and European stock markets as well, on the current financial situation of Greece and the bailout that is currently in the making by the European Community.
I found it rather surprising that it would have such an effect.
Konrad
 
Toy Soldier Brigade said:
No one has a clue what really happened. Perhaps cyber terrorism ? Just a thought.
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..................................................................................................

I'm sure someone knows.......they just won't say, which makes it even more

mysterious!

I also heard they they were goint to review all trades made within a 20

minute window for cancellation.

Can you imagine the accounting nightmare that would be!:eek:
 
kogu said:
Yesterday a lot of German News (Spiegel, Stern, Focus, Welt, etc.) blamed the plunge, which affected the Asian and European stock markets as well, on the current financial situation of Greece and the bailout that is currently in the making by the European Community.
I found it rather surprising that it would have such an effect.
Konrad
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......................................................................................................

I watch the Asian markets in particular and usually it is simply one additional

factor to consider reguarding the next days activity. The situation in Greece

has been on the table for several weeks now, and it has been used to explain

both upward & downward trends.

It is 76 years since the SEC was established by Congress, and the market is

still influenced by questionable stories and daily spin by the media.:rolleyes:

Its a real challenge.
 
kogu said:
Yesterday a lot of German News (Spiegel, Stern, Focus, Welt, etc.) blamed the plunge, which affected the Asian and European stock markets as well, on the current financial situation of Greece and the bailout that is currently in the making by the European Community.
I found it rather surprising that it would have such an effect.
Konrad
Click to expand...

The market has been falling of late because of concerns about the financial situation in Greece. There is fear of contagion to the Eurozone and the rest of the world, including the US. There are numerous unpleasant possible scenarios that could play out. The industrialized world faces major challenges as it wrestles with excessive sovereign debt levels amidst a sluggish worldwide economy.

The "plunge" was a separate event unto itself. It lasted for about 20 minutes. During that time the value of some securities became grossly underpriced - P&G stock was the most oft quoted example, as it was momentarily cut almost in half. Some ETFs suffered even more dramatic falls, showing a price of zero for a few minutes. The "plunge" was clearly some sort of systematic failure or glitch, reason TBD, too early to say whether the result of nefarious activites, human error or other.
 
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My crystal ball says Market will be back to normal by end of this week!:D

White House says last weeks decline wasn't a cyber attack.:rolleyes:

EU set up a massive defense fund for the Euro.:D

Asian markets are up......so here we go.:p:D

Lets hope anyway!:)
 
Yee Haw!

Oh sorry, wife let me sleep in........woke up put in a sell and got my price.:)

I knew it would come back, but I was thinking by mid to end of week, this

is really something. Of course there may be a slight pull back over the next

day or two which will only create a new buying opportunity.

Its really quite amazing, I believe all in part to numerious brilliant minds and

the "bailout funds":)

Nothing really beats a good capitalist system where a man can use his mind

and earn a living.:p
 
Consumption and fear. The great legacies of the early 21th century. Last week we were all doomed. Today it's all rosy. The non-stop media coverage via TV and internet have a lot to do with this result. They feed off sensationalism creating hysterical overreactions on almost a daily basis. How about the water cooler that shut down NYC last week? Carried live on CNN and other cable networks for hours.
 
Very true, however the trick is to develop your knowledge, and pick the

correct companies that allow you to move foreward. It can be a challenge,

as most of life is, but it is also a lot of fun.

Secret is to learn what to buy, when to buy, and when to sell.

An experienced trader can make money in an up or down market, and I do

not advocate or participate in short selling. I believe it is wrong to sell

someone elses shares with no compensation for them.

You can do the exact same thing with your own positions.:)
 
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