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04-01-2014, 01:49 PM #1
high frequency trading- Stock Market is Rigged
Definition of 'High-Frequency Trading - HFT'
A program trading platform that uses powerful computers to transact a large number of orders at very fast speeds. High-frequency trading uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with the fastest execution speeds will be more profitable than traders with slower execution speeds. As of 2009, it is estimated more than 50% of exchange volume comes from high-frequency trading orders.
Michael Lewis just published a book "Stock Market is Rigged"
04-02-2014, 03:57 PM #2
Interesting"Remember who's putting bread on whose table"
04-03-2014, 03:10 PM #3Senior Member
- Join Date
- Feb 2009
- Orange County, CA
all over the news lately...even mark cuban is against it, along with a lot of other people.
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04-05-2014, 02:43 AM #4
04-05-2014, 05:11 AM #5
Yes it's rigged, but it's irrelevant to the average trader/ investor anyway. Most people don't have 250,000+ a day to spend on the infrastructure needed to be a HFT trader.
HFT only really matters to day traders, desperately trying to read the tape and a lvl 2 screen. Using limit orders will guarantee the price you want."HEY Panda, we don't take too kindly to your types around here!" "Now skeeter, they ain't hurtin no body"
“Jessie, you asked me if I was in the meth business or the money business. Neither. I'm in the empire business.” –Walter White
"Act as if... " - The boiler room
04-05-2014, 05:28 AM #6
04-05-2014, 06:02 AM #7
High-frequency trading is just the tip of the iceberg, really. It all meshes with the entire market, as a whole, being manipulation. Major players buy low, sell high, and fabricate reasons why the market decided to jump either way.
"The market plummeted 300 points today, due to investor hesitation concerning the financial crisis in Cyprus." Here's your sign.
04-05-2014, 09:50 PM #8
Anyone who thought the stock market wasn't/isn't rigged is an idiot.
04-05-2014, 10:59 PM #9
I can't help but to roll my eyes and shake my head every time I hear something about the stock market being rigged. Of course its rigged its meant for the big boys with a tone of money to make more. Reasons why I quit trying to learn the stock market, better off with a 9-5 job.
04-06-2014, 04:43 AM #10
As far as issues with the stock market, I have a huge problem with the valuation of companies. Nearly any other business you purchase you buy/sell for 2-3x yearly net profit give or take depending on industry. Once the exact same company goes public, its suddenly worth 20-40x earnings such as chipotle resturants. What in the actual F*ck?!? So just to make back the "purchase price" you have to have up to 40 equally high paying years just to break even? Forget that nonsense. The only stocks I deal with are RRSP's and other tax diverting accounts. If I'm looking to invest, I can think of several other options for my money then stocks... / rant
Last edited by VII; 04-06-2014 at 05:12 PM.