High Frequency Trading

July 29, 2009 at 10:15 am  ·  Category: Market Commentary, The Investment Advice Business

high-frequency-trading

(Source: The New York Times – click on link for a larger graphic)

It’s become a technological arms race, and what separates winners and losers is how fast they can move.

– Joseph M. Mecane, NYSE Euronext, quoted in “Stock Traders Find Speed Pays, in Milliseconds”, The New York Times, July 24, A1

Buying stocks used to be about long-term value, doing your research and finding the company that you thought had good prospects.  Maybe it had a product that you liked the look of, or perhaps a solid management team.  Increasingly such real value is becoming irrelevant.  The contest is now between the machines — and they’re playing games with real businesses and real people.

– Paul Wilmott, “Hurrying Into the Next Panic?”, The New York Times, July 29

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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