क्या डे ट्रेडिंग आपको अमीर बना सकती है?समझाएं और विवरण दें

 

It’s funny how one person’s seemingly small actions from his bedroom can result in an event with international news coverage. This was the case with the infamous 2010 flash crash that sent shockwaves to the stock market, even for only about 36 minutes.

The most amazing thing about this crash is the instigator behind it was a little-known UK-Indian trader. This is the story of Navinder Singh Sarao, the ‘Hound of Hounslow,’ who’ll forever be known as the man who cheated Wall Street from a bedroom in his parents’ home.

(Check out this great doccie by Bloomberg on this story here).

Who is Navinder Singh Sarao?

Navinder is a London-bed futures trader born on 14 November 1978 who started trading in 2002. Sarao had Asperger’s, making him autistic. This made him socially awkward and vulnerable to deception.

On the bright side, people with Asperger’s may be geniuses who can obsess over a single subject until they master it. Those around Sarao considered him a math savant in school who ended up studying computer science at Brunel University in London.

Even the Futex chairman at the time, Paolo Rossi, said in a Bloomberg TV interview that he’d “be remembered as one of the world’s greatest traders.” Yet, only in 2008, when he left Futex, did he start making a fortune. Filings of his company, Nav Sarao Futures Ltd, showed his assets were worth £14.9 million by the end of June 2009.

But this was only the beginning. This time, with the help of a programmer, he built a trading program that gave him a market manipulation ‘cheat code.’

This software practised ‘spoofing.’ Here, it would place tons of limit orders to create artificial supply or demand. The software would then cancel them soon after when the price was nearby them and take the opposite trade.

It’s an effective way to make profits because you can sell at a higher price or buy at a lower…