By now, you've heard it all. Emerging markets and Europe down on their luck, overproduction of oil, Ukraine, Ebola and even Hong Kong. All these events seem to be the reason behind jittering markets, in spite of mostly good economic indicators in North America.
No one seems to recognize the malevolent influence of automatic trading that sets threshold for automatic sale orders, also known as “stop-loss”. When the stock market is going down, it will encounter these guard-posts and trigger massive sales spinning a vicious circle or rather a damning fall to hell.
Pretty simple, not recognized and yet hard to dispute. Suffice to say that the more automated stock markets become, the more volatile they'll be. Fasten your seat belts, sit back and relax!
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