Quote: (04-02-2014 05:49 PM)Lou pai Wrote:
If you crippled the market you would not be able to buy a stock at all because there would no be exchange.
HFT does not affect the individual investor. If you want to buy a stock and hold for a year, you can. HFT trading only creates competition for other firms in the HFT space, as they are competing against each other. For them it is a race to zero because you have to constantly be faster than your competition.
Ultimately, HFT makes it impossible for anyone except for the guys at the top to make lots of money. Sure they only make a penny here and there... but multiplied by a billion and that's millions of dollars each day, made from nothing.
Both in 2012 and 2013, JP Morgan had zero days of trading loses. Please explain how this is fair for anyone? These guys use HFT to make ridiculous cash and now, big banks have so much cash they do not even need to know anything about the companies.
If JP Morgan wants a stock price to rise, they just buy a billion shares and make it rise. Likewise, if they want it to fall, they short and then sell on their own shorts. Impossible to compete.
HFT algo's do cause additional mass harm because it makes it impossible for regular guys to accurately judge the worth of a stock. At any moment in time a stock could have millions of dollars pumped in and out of it, making it impossible for retail investors to appraise companies accurately.
This ultimately hurts job creation, because many companies look to create "attractive looking companies" so they can just pump and dump their own investors. As a result, capital is spent on gambling instead of productivity, while regular workers are left unemployed.
To give a few examples of how HFT screws over the markets.
NASDAQ:AAPL
Apple's stock price in 2012 rose and fell over 100%, within the span on one year. How many investors got fucked because of that, I wonder?
NYSE: TWTR
Twitter's stock price has also risen and fallen 100% within the span of 5 months. This is penny stock territory, except twitter is supposed to be one of the world's largest tech companies. And it behaves like a penny stock.
And these two examples are just the easy famous ones to point out. But if you dig around you can find it everywhere.
Contributor at Return of Kings. I got banned from twatter, which is run by little bitches and weaklings. You can follow me on Gab.
Be sure to check out the easiest mining program around, FreedomXMR.