Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market into a Casino by Jim McTague, Hardcover | Barnes & Noble
Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market into a Casino
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Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market into a Casino

by Jim McTague
     
 

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In just the past few years, the equity markets have been transformed into a high-speed casino that’s a pure crapshoot: a white-knuckle rollercoaster ride that has left individual investors legitimately terrified of equities. The Flash Crash of May 6, 2010–when the DJIA plummeted 734 points in 17 minutes, and dozens of top companies traded as low as

Overview

In just the past few years, the equity markets have been transformed into a high-speed casino that’s a pure crapshoot: a white-knuckle rollercoaster ride that has left individual investors legitimately terrified of equities. The Flash Crash of May 6, 2010–when the DJIA plummeted 734 points in 17 minutes, and dozens of top companies traded as low as zero–was just a harbinger of disasters to come. In Crap Shoot Investing, Barron’s Washington Editor Jim McTague reveals the twin causes of this massive transformation: high-frequency traders using mathematical hocus pocus, and blundering regulators whose attempts to promote long-term investment have massively backfired. McTague takes you through the Flash Crash moment by moment, revealing what happened and how it happened. Next, he burrows “under the volcano” to uncover the titanic, uncontrolled forces now at work in equity markets, showing investors exactly what they’re jumping into when they buy and sell stock today. You’ll learn how new exchanges, desperate for cash, are attracting high-frequency traders at everyone else’s expense… how “dark pools” of hidden trades are tilting the playing field…how even small investors are promoting dangerous volatility. McTague explains why regulators continue to ignore the big picture as the markets accelerate towards chaos. Last but not least, he presents a rational strategy for investors who need to get ahead in markets that have become riskier than most casinos.

"A valuable read for anyone considering investing in equity markets."

Reprinted with permission from CHOICE http://www.cro2.org, copyright by the American Library Association.

Editorial Reviews

Library Journal
McTague, Washington editor for Barron's Magazine and frequent FOX Business News guest, offers his take on recent Wall Street history, most notably the Flash Crash of May 2010; increasing market volatility; the advent of high-frequency trading and the algorithmic trading activities of "quants" (quantitative analysts); and Securities and Exchange Commission and Commodity Futures Trading Commission regulation efforts (which, he contends, have been largely ineffectual, if not counterproductive). Equity and commodity trading are becoming increasingly complex, and McTague's narrative is correspondingly detailed and acronym heavy, although he still tells a quickly paced story. McTague clearly knows his financial stuff (although he perhaps over-attributes investor jitters to the Flash Crash), but his right-of-center political bent sometimes colors his commentary. The jacket copy promises tips for trading, but the book does not contain much in the way of concrete advice for the generalist investor. VERDICT An interesting read, particularly about technological and regulatory shenanigans in today's financial markets, but not as accessible as Michael Lewis's Liar's Poker or The Big Short or as helpful as Gary Kaminsky's Smarter Than the Street.—Sarah Statz Cords, The Reader's Advisor Online

Product Details

ISBN-13:
9780132599689
Publisher:
FT Press
Publication date:
03/15/2011
Pages:
256
Product dimensions:
5.90(w) x 9.00(h) x 1.10(d)

Meet the Author

Jim McTague has been Washington Editor of Barron’s Magazine since 1994–a post that gives him privileged access to key players throughout Washington and Wall Street. A credentialed White House and Capitol Hill correspondent, he’s covered every administration since the first President Bush. He has appeared on NBC, CNN, CNBC, MSNBC, FOX, and is a frequent guest on FOX Business News. McTague’s extensive analysis of the underground economy in 2005 exploded the myth that illegal aliens were a small percentage of the U.S. population, triggering today’s border security debate.

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