If the chart is showing frequency of trades it's just showing that there are more trades right?
I find it a little misleading that the graph is presented as somehow being connected to market instability. If they are correlated, they haven't demonstrated the relationship clearly to me. Am I misreading this?
Also I fail to see how someone else's algorithm going nuts could impact regular Joe traders as the article also suggests. If a stock price starts plummeting because of a bug in a trading algo goes haywire, a savvy trader would look to their news sources and realise nothing has happened. Or if they are passive investors probably by the time they mobilise to panic sell it's already corrected itself.
I find it a little misleading that the graph is presented as somehow being connected to market instability. If they are correlated, they haven't demonstrated the relationship clearly to me. Am I misreading this?
Also I fail to see how someone else's algorithm going nuts could impact regular Joe traders as the article also suggests. If a stock price starts plummeting because of a bug in a trading algo goes haywire, a savvy trader would look to their news sources and realise nothing has happened. Or if they are passive investors probably by the time they mobilise to panic sell it's already corrected itself.