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Post by zuolun on Nov 5, 2013 23:09:01 GMT 7
The Wall Street Code
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Post by oldman on Nov 6, 2013 7:44:32 GMT 7
Talks about high speed trading in the US and how the different buy codes can give split second advantages to certain firms. Also talks about how the high speed trading systems identify the entry of fund money and how they make money from this. Investors must realise that the market is never a fair place and this is why I rather remain a fundamental investor than a trader. At least I know that my odds are better.
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Post by me200 on Nov 6, 2013 8:29:11 GMT 7
Call me old fashion, I am a fundamental investor. I would prefer to grow my wealth slowly and steadily.
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Post by hyom on Nov 16, 2013 21:05:11 GMT 7
Talks about high speed trading in the US and how the different buy codes can give split second advantages to certain firms. Also talks about how the high speed trading systems identify the entry of fund money and how they make money from this. Investors must realise that the market is never a fair place and this is why I rather remain a fundamental investor than a trader. At least I know that my odds are better. I think fundamental investors cannot totally avoid being impacted by high-frequency trading, although the impact will be felt more painfully by the slower human traders. This is because high-frequency trading is electronic front-running. Fundamental investors who is trying to collect a big position will find that the prices will start running away when they start collecting. There are algorithms which try to detect big players (usually institutional investors) trying to accumulate a position and these algorithms will make money off big investors who are desperate to collect more. Algorithmic/high-frequency traders like to claim that they boost liquidity and therefore add value. They claim that their trading narrows the bid-ask spread. However, good liquidity is not a function of narrow bid-ask spread only. The bid-ask size is equally important. If I am writing a trading algorithm, I will make sure the bid-ask size to test out the market is small to minimize costs. I invest in the US market. I think it is much harder to make money there than in SGX, though I hear some Singaporean investors saying otherwise. SGX is encouraging high-frequency traders to come to Singapore. This is good news for SGX shareholders who will benefit from the rising volume but bad news for the rest of us who will suffer hidden fees from electronic front-running. www.bloomberg.com/news/2013-10-27/singapore-exchange-seeks-high-frequency-traders-southeast-asia.html
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Post by oldman on Nov 17, 2013 5:54:53 GMT 7
High frequency trading can only be done on high volume counters as these traders need to buy and sell within minutes or seconds. For me, I focus on the second liners and unlike the fund managers, I don't need to rush to buy. Hence, the counters I am interested in, I am sure the high frequency traders will not want to touch given that most of these stocks are illiquid.
For folks who like trading, I think the US will be a much better market to play in. There is certainly volume especially if one plays the top counters there.
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