Computers trading on the news

Reuters: Computers read news, and trade on it quickly — This sounds cool and scary at the same time. I’ve seen too many times when stories start off in billions when it should have been millions and losses become profits.

It takes a person about 10 minutes to read a 2,500-word, front-page feature story in the Wall Street Journal. Computer programs increasingly being used by investors to parse news stories can process one in about three one-hundredths of a second.

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