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For me, markets have been good for past few years. If someone wants to rig the markets. I would say do more. :-) what you guys think ?
Hehehe . I would also say bring it on. I think it depends what these HFT guys do if it's good or bad. If they provide liquidity and narrow the bid/ask spread it's good but if they front-run orders it's bad and that should be outlawed.
From what I see, Lewis doesn't say the stock market still isn't the best way for the average investor to invest their money for the best long term return. So, even if there is some rigging, it should not discourage most people from investing in stocks.
I believe the short term movements in markets are functions of past movement among other factors. there are enough market participants that believe in momentum to make it real. These short term moves are very fickle and can change course at the drop of a hat.
Long term prices are far more predictable and completely associated with earnings and cash flow. Long term holds are also tax advantaged and avoid the commission churning effect of short term trading.
Let the professional traders duke it out. Retail investors have.an advantage over wall street in that retail investors don't need to worry about short term performance. A few quarters of losses for a wall street firm can result in its dissolution.
No reason to fight an uphill battle when you don't have to.
Last edited by bigboibob; 03-26-2015 at 08:26 AM..
I'm not sure that high-frequency trading means that the market is rigged but it is an advantage for the deep pocket investing firms that can afford these expensive and sophisticated tools to carry out this activity. There are many other things that affect the market/stocks like pump and dump and sketchy journalists that are paid by investing firms to bash a certain company so that investors get scared and sell their stocks while that investing firm makes a bundle on their short position. The SEC does nothing about this.
Bingo. Really all Flash Boys told me from an individual investor perspective is never purchase market orders, but then again Even the most basic investor knows you should always use limits. While it is all very interesting and intriguing using limits will always get you your stock at the price you want or it won't execute.
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