Who cares
if high frequency traders are fighting for prime real estate?
Not exact matches
But in the realm of finance, as much as we
traders appreciate the opportunity to unpack and trade complexity in securities, structures and markets, we wonder
if the overall impact of financial innovation, including derivatives, structured products,
high -
frequency trading and communication advances, is a net negative, albeit with a possibly long delay before the drawbacks become visible» Paul Singer
If you stop providing extra bandwidth and fast cables to
high -
frequency traders inside exchanges, 1 they'll still have fast internet connections and fast cables outside the exchanges.
If you have followed my blog for a while, you know that I am strong proponent of «sniper trading» and waiting patiently for
high - probability trade setups, rather than the
high -
frequency trading style that tends to put so many
traders «out of business», so to speak.
If this were possible, rest assured that
high -
frequency traders would take advantage of this tactic to manipulate share prices.
With this knowledge of how
high speed
traders have impacted the stock market as a whole one has to question
if they do benefit us and I would say it's not really at the level the
high frequency trading firms would necessarily say.
And
if you are a short - term
trader, the
high frequency traders have eliminated a lot of the low hanging fruit.
What
if you could find good value stocks in a market where the price was dictated by the financial results, not market «sentiment», momentum
traders, short sellers,
high frequency trading programs or what a butterfly did in Shanghai?