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A Million Dollar Reason Why Stock Trading Delays Must Be Fixed Fast

September 5, 2009 by Lance Jepsen  
Filed under Stock Market

Computer programmers have created an inexpensive solution for diagnosing delays in data center networks as short as a hundred millionth of a second. These very short delays measured in millionths of a second can cause multi-million dollar losses for investment banks running automatic stock trading systems.

The University of California and Purdue teamed up to create this cheap solution. The programming code was presented on August 20th, 2009 at SIGCOMM.

This new programming method enables data centers to diagnose delays as short as millionths of a second in routers. The programming method also will detect packet loss as infrequent as one in a million at every router in a data center’s network.

The programming code is called the Lossy Difference Aggregator. It requires no new hardware and has no performance penalty on the router.

Institution stock traders and corporations that sell online stock trading platforms will go crazy for this technology. The reason is that if an online brokerage firm has a stock trading algorithm that reacts to an incoming market data feed even just 100 microseconds faster than the competition, they can buy millions of shares before their competitors.

Online automated exchanges like the American Stock Exchange use custom designed hardware boxes that are very expensive. These boxes are put on routers and key points in a data center network. These external hardware boxes are too expensive to put on every router within a data center network making it difficult to trouble shoot and find a problem router. By the time the problem is detected and fixed, it will cost the company anywhere from 2 to 4 million dollars because of delayed buy and sell orders.

This computer programming code will allow router vendors to add loss tracking on every router at no additional cost. This will completely eliminate the need for specialized external router monitoring devices.

The old school way of monitoring a routers performance is to use an external device to track when a packet arrives and when it leaves the router and then have it calculate the difference.

Instead of summing the arrival and departure times of all packets traveling through a router, the computer programmers new system randomly splits incoming packets into groups and then adds up arrival and departure times of each of the groups separately. As long as the number of losses is smaller than the number of groups, at least one group will give a good estimate.

Subtracting the sums of the groups and then dividing by the number of messages gives an approximation of the average delay with very little performance reduction of the router. It has about the same overhead as a series of small counters.

With this computer programming code built into every router, a data center manager will be able to quickly pinpoint the offending router and interface that is adding extra millionth of a second delays or losing even one packet in a million.

By Lance Jepsen. For free stock trading advice by master stock traders and free stock charting software go to stock trading


Filthy Rich Trader Comes Clean and Shares His Secret

August 30, 2009 by Shawn Tilman  
Filed under Stock Market

Ready to learn how to ethically steal TONS of money from other stock market traders with this one indicator?

This money pulling indicator is used by billion dollar hedge fund traders like Steve Cohen who’s firm has average over 40% a year!

Some 40 traders work under him. He is the king of tracking the volume of any given stock or market.

Volume is one of the most overlooked indicators by amateur traders.

Even if you think you understand volume, you owe it to yourself to read this article to make sure you understand how to correctly interpret volume for massive profits.

The meeting of minds between bulls and bears are represented in each measured unit of volume. The volume is a still picture of the psychology of the crowd trading a particular stock or market. Rising volume confirms the trend while falling volume questions the trend and whether the dominant group can keep it going.

In a sell off, increasing volume into the move tells you that panic has firmly settled in as traders scramble for the exit. If you look carefully, you’ll also see newbies jumping in as they bet the market is going to reverse. Keep in mind that in order for a sell order to execute, someone has to be a buyer. Every trade has these two sides. Jumping in to buy in a downtrend is known as trying to catch a falling knife. Most often it is a bad idea. Never bet against the wisdom of the crowd. Let some other newbie put on that trade. When all the sellers have exited the stock, the volume on the downside falls off as the downward move begins to run out of steam.

When a stock is trending higher, watch the volume. If the volume is increasing into the upward trend, it means that greed is causing more and more traders to take notice of a particular stock and to dog pile into that stock. As the stock continues to trend higher, the volume will continue to build which tells you that more and more traders are piling into the stock and that extreme greed has firmly gripped the market participants. Now keep an eye on the volume. Fear will slowly begin to replace greed as the volume begins to fall off and the uptrend starts to run out of steam.

Volume goes beyond just telling the conviction of a current trend, it gives you several clues.

A one-day splash of uncommonly high volume often marks the beginning of a trend when it accompanies a breakout from a trading range. A similar splash tends to mark the end of a trend if it occurs during a well established move. Exceedingly high volume, three or more times above average, identifies market hysteria. That is when nervous bulls finally decide that the uptrend is for real and rush in to buy or nervous bears become convinced that the decline has no bottom and jump in to sell short.

A divergence between volume and price usually means that a stock is at a turning point.

If price rises while volume falls, it is a signal that the uptrend is not attracting very much interest. If price falls to a new low and volume falls at the same time, it is a signal that the downtrend is not attracting very much interest and an upside reversal is likely. Price is more important than volume but a master traders knows how to analyze volume in order to gauge the psychology of market participants.

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Increase Your Trade Accuracy After Learning This Simple Rule

August 13, 2009 by Sam Neilson  
Filed under Stock Market

What your about to learn has nothing to do with using a stock screener. If you want to greatly improve your stock trading skills and accuracy, you need to learn this secret.

I was told this secret by a retired institutional trader several years ago. It still works today. It seems to good to be true. Using this secret I have increased my trade accuracy to nearly 80%. Every week I use this secret. I’m going to show you exactly how to duplicate this secret and improve your own trading accuracy.

Have you ever heard the term two minds think better than one? Well… I have actually redefined that term: 5 Professional Institutional Minds Can Produce What 89,697,618 Unprofessional Minds Can’t

There are over 80 million Americans who trade in the stock market and yet very few of them, if any, have figured out this secret I’m about to share with you. Are they dumb? No way. It’s just that they don’t have the same level of access to the market that institutional traders have.

The secret is called the Weekend Effect. The Weekend Effect can be summarized like this: trading action is lower on Friday and Monday and returns are lower on Monday.

Miller did a study in 1988 that proved that returns are usually negative on Monday. Miller’s research seems to suggest that the reason behind this is individual investor trading. In a second study, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used what is known as odd-lot trading as a measurement for individual investor trading patterns and found evidence consistent with the Miller hypothesis.

Trading activity is less on Friday for large-lot trades which is why the volume tends to be lower on this day. So institutional traders will zero out their trades on Thursday or Friday. Institutional traders don’t like going into the weekend news cycle with any open positions.

Monday has lower trading volume than any other day of the week. Small, individual traders have more sell orders on Monday than any other day of the week. If small-size trades show individual investor activity and large-size trades show institutional investors then both types of investors play a key role in Monday being a negative return day. The individual traders contribute through their trading while institutional traders contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutional traders contribute by their absence on Friday and Monday, which reduces liquidity.

You will be most accurate with your trades on Tuesday through Thursday. You will find that your accuracy rate of successful money making trades goes up if you take an entry on Tuesday and exit on Thursday or at the latest Friday.

Now that you know markets have a habit of dipping on early Monday trading, do not sell your stock too early based on Monday morning trading activity. Remember, Monday’s have the greatest number of head fakes to the downside.

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The Advantages of Acne Treatment

March 4, 2009 by Deniss Durrell  
Filed under News

Skin blemishes can be uncomfortable and hard to deal with. Your face is your identifying card to the world and when you suffer from stern acne, it would be not easy to take care your head held up high.

However, the good news is that there are different types of acne treatment that can work wonders on your complexion.

Acne treatment is designed to reduce the amount of oil that your skin produces. Acne is technically when your pores get clogged with excess oil and dirt.

By lessening the oil production that your skin makes you are can deduct the entire of oil that may perhaps possible clog your pores. Additionally acne treatment supports your skin to speed up its cell proceeds a few style of acne treatment is as well up to by means of item that sole job is to fight probable bacterial infections. plus generally genres of acne treatment, you can require see effects in four to eight weeks.

There are quite a lot of versions of acne treatment. Topical acne lotions are very uncomplicated to use and are Even ready for use devoid of an instruction. Mainly of these own benzoyl peroxide, salicylic acid, or lactic acid as the active ingredient which fights your acne. This model of acne treatment is especially efficient plus mild cases of acne.

Antibiotics are a further model of acne treatment. These are conventionally applied for more better to stern cases of acne. To complete a programme of antibiotic acne treatment you can entail to to find an instruction from your physician.

Perhaps the mainly extreme, laser and light therapy is too an usually used acne treatment. by means of this therapy a laser is applied to breakage your oil glands so that they produces less oil, as well as so decreasing how extra might locate blocked in your pores.

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