Money Archives

The Securities and Exchange Commission’s Mistake

What is the Securities and Exchange Commission? How did they contribute to making high-frequency trading easier? The U.S. Securities and Exchange Commission’s primary purpose is to prevent market manipulation. However, when the stock market transitioned into a technological stage, they were forced to change their stock market regulations with it. Unfortunately, these regulations made it easier for high-frequency (HF) traders to exercise their power over responsible investors. Here’s how the Securities and Exchange Commission’s regulations ended up backfiring on them and who stepped up to fix their problems, as explained in Michael Lewis’s book, Flash Boys.

Wall Street’s 2010 Flash Crash: How It Happened

What is a flash crash? Why did Wall Street experience a flash crash in 2010? A flash crash is when the stock market experiences a dramatic and unexpected drop in prices followed by a quick recovery. Wall Street experienced a flash crash in 2010, which Michael Lewis, author of Flash Boys, believes was caused by high-frequency trading (HFT) methods, but others believe one man was behind it. In this article, we’ll explore the 2010 flash crash, and how Wall Street fell victim to it.

Stock Market Order Types: How They’re Manipulated

What are stock market order types? Why are they so easily manipulated? On the stock market, the most common order types are market orders, limit orders, and stop-loss orders. In Flash Boys, Michael Lewis says that because of the illegal practice of high-frequency trading, investors have found new and complicated ways to create order types for their own financial gain. Learn the basics of stock market order types and how they’re being used in illegal ways.

What Is Portfolio Allocation? Definition and Guide

What is portfolio allocation? Do you need a basic guide to learn how to allocate your assets? To allocate your assets means to build a portfolio of investments that you’ve spread out into different categories. You split your assets into these categories based on how important they are to you and how much money you want to make. Let’s look at how Tony Robbins describes portfolio allocation in his book Money: Master the Game, along with how to divide your money sensibly.

Front-Running Stocks: How Does It Work?

How does front-running stocks work? Why is the practice of front-running prohibited in the financial market? If you’re front-running stocks, you’re technically manipulating the market into giving you private or insider information. In Flash Boys, Michael Lewis goes into depth on the concept to educate readers on why it’s a dishonorable way of trading stocks. Here’s Lewis’s easy-to-understand breakdown of front-running stocks, including three versions of the practice that high-frequency (HF) firms and investors use.

3 Steps to Making Commitments & Keeping Them

What are you committed to? Do you need help sticking to your commitments? Tony Robbins provides three steps to making commitments in the context of personal finances. However, you can apply these principles to anything. His steps involve focus, whole-heartedness, and serendipity. Keep reading to learn why making commitments plays an important role not only in your finances but in your overall success in life.

3 Arbitrage Examples in High-Frequency Trading

What is arbitrage? What are some arbitrage examples that are most often used in high-frequency trading (HFT)? According to Michael Lewis, the author of Flash Boys, there are three different forms of arbitrage that firms use if they participate in HFT: slow-market, dark pool, and rebate. These arbitrage examples help investigators understand how HFT works in large corporations. Continue reading for a better understanding of arbitrage with examples to illustrate the concept.

How to Make a Financial Plan in Just 4 Steps

Are you wondering how to make a financial plan? Are you looking for an easy way to save money? Luckily, Tony Robbins has answers for you in Money: Master the Game. In just four steps, you can master the art of finances and develop a rich lifestyle. Keep reading to learn how to make a financial plan by keeping a positive attitude and investing wisely.

What Is Prop Trading? How It Deceives Customers

What is prop trading? How do firms and banks use prop trading to trade against their customers? Proprietary trading (also known as “prop trading”) is used by banks or financial firms to trade for themselves, not their customers. However, doing so means that they’re competing against their own customers, and they have more power to win. Continue to learn what is prop trading and how it works as a scheme.

How to Save More Money With Tony Robbins’ Advice

Do you want to know how to save more money? What are the obstacles that can prevent you from saving? In Money: Master the Game, motivational speaker and life coach Tony Robbins provides the key to saving money: spending less and investing more. With this, he explains that you can fast-track your saving progress in just three ways, but you have to avoid the pitfalls that will derail your progress. Here are Tony Robbins’ tips to save money so you can live a rich lifestyle.