I came across this video today where you hear live traders and their reaction on May 6th, which of course is the day of the Flash Crash. It's always useful and interesting to go back and revisit trader's reactions on monumental trading events such as this to see if you can learn how to react or not to reach in the future. If you've been a reader here at zentrader for some time you'll remember that my timing signal issued a sell on the markets on April 29th, and I got short the indexes after the close on that day.
On the actual day of the crash I remember leaving to take my wife out to lunch that day because it was her birthday and when I left at 2pm eastern the markets were falling, but given that I was short I left my positions alone so they can do their magic. By the time I got to Starbucks and hour later and opened my laptop to see the carnage, I exited my positions as quickly as I could. The Dow had bounced a couple of hundred points so I did miss the low, but I have very fond memories of the Flash Crash.
Click to see video.
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