What he should say is apparently that they reduce or fluctuate is not created. And this is just a slip tongue as Sigmund Freud, as checking deliveries can disclose the fact.
I worry about high frequency Trading (HFT) for two main reasons: the decrease of the relationship between value and price, the potential for the positive comments.
Markets have enabled businesses to raise money. Expanding employment and other benefits of this society only if a market is not appropriate for disclosure of the actual value of the company via the stock prices of otherwise market does not differ from the casinos, including the prices may be shared by the rotation of the roulette wheel. Fundamental analysis should work similar. You analyze the company Study of customer research and summarize management etc, but the basic analysis is hard work.
Much easier is to. Run the data entered into the black box contains some algorithm and optimization algorithms to your black box does not administer the HFT hoot about the actual value of the company it khakiao with what happened that price over the next few seconds. You may take a few months that this black box for the first time but after that you can use with the market relatively little effort just wide for marketing re-optimize (and we know from the market players will be compensated if the question of whether or not results are long-term profitable as second priority) Therefore, with a basic analysis for each market. Each week one of hard work must be.
The above does not matter if the boys HFT does not dominate the market is now 70% of trade in some exchanges will trade HFT.
Whenever you have a bandwagon, HFT now, you have the opportunity of system risks and opinion remember that product bandwagon … the credit. Last How did one open for world economy?
Get ideas you need in quantity of traders by similar strategies.
You "they all have different strategies to say maybe true now, but not for long had informal traders from other mercy and because someone in the financial changes every two years. It didn't take long for the concept widely distributed.
But feedback can be positive or negative.
Delete comments To move up in stock sales, sales-and therefore the price and down to purchase, and therefore a rise in prices dampens or fluctuate.
Positive comments are when the purchase is created, which begets, shares higher again. Why else buy etc., etc., and, when OK begets sales and other causes, and more sales ...
So that it results in HFT decrease of or fluctuate over negative comments or add through positive comments? This is a simple one. If you are a hedge fund manager, which of the following do you want A or B?
A. low or fluctuate more equity or down quite predictably, no skill is required to make money, even by the man on the street hedge fund cannot charge a large fee.
B. or fluctuate high marketing expert is very difficult and can charge large fees if good Fund will make a killing, because of the enormous profits they have made for their customers, but they are just as likely loss of all your customers. In case … nothing bad happened to Fund Manager
Yes, we are in familiar territory of certain moral disaster fund to add to or fluctuate and they have found themselves in, they want to make this happen.
(BTW, if you want the math of the feedback, see PWOQF2 or read the documentation comments, the effect of preventing the risk in the markets illiquid, (P.Schoenbucher and P.Wilmott), Siam J. Appl. Math 61 232-272 (2000), it is all about gamma strategies)
Did we find ourselves in this position because skilled play boy HFT "liquidity card", while the right? The argument to follow these lines: "when Mom and Pop to sell off a portion of the portfolio to fund their retirement, they will get a better price if there is more liquidity to liquidity not good" for the shares they hold onto 20 years certainly nonphuak he is already specifically Whoohoo break champagne so you are arguing with additional liquidity card, the merrier, right? does the fact that during those 20 years. Its stock has lost 50% of the value of thanks to the excellent HFT Crash never gets mentioned one hundred extra and 50% Hmmm?
Everything in moderation more liquidity available the more you rely on your service provider and worse collapse when the liquidity dries up and is positioned to both make this drying up and benefit from it? Why are boys HFT.
P
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