
From Michael Hudson –
What does that mean for you? If you are an actual human being you are competing, when you make a stock purchase, with a supercomputer, like the ones they use to analyze the weather. That is why the amount of time a stock is held is so low – computer trading.
It’s not a level playing field. A more apt comparison might be a gambling house where the table is rigged to favor the owner almost but not quite always every time. You have to have the occasional lucky winner whose stories will keep the others coming in.
An exaggeration?
Okay, how about this from 2009 –
Or this –
This kind of computer trading or should I say, Algorithmic trading, isn’t going away. So if you are a mere mortal, you might find your ability to make money on stock a little constricted by non-human competitors.
James Pilant
Related articles
- Algorithmic Trading is Not High Frequency Trading (minimalj.wordpress.com)
- Regulators May Catch Up With High-Frequency Trading (huffingtonpost.com)
- What does high-frequency trading do to the markets? | Jill Treanor (guardian.co.uk)
- How much does the latency of the data feed play into high frequency trading? (minimalj.wordpress.com)
- Does High-Speed Trading Hurt the Small Investor? (online.wsj.com)
- Computers Blamed (Again) for the Market’s Woes (theatlantic.com)
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