July 12, 2010
Newsweek's June 7, 2010 article on this subject elaborated on how HF Traders using algorithems extrapolated from stock ticker results in their "colocated" computers skim fractions of cents at a time by making millions of microsecond trades a day.
Unfortunately, they have been given every edge on the game over the general public when it comes to quickly accessing information, execution speed, computer aided decision making and even being allowed to peek at other people's orders before executing their own.
Sadly, these traders have no interest in investing in the market. The market was established for companies to go public, to obtain capital from public investors by selling shares, use the money to build equity in their companies and share the rewards with the investors. In no way does HFT benefit either the companies or the investors or the US economy. In fact, by allowing HF Trading, Wallstreet is complicent with these traders of stealing from honest investors, and what is so bold, they are doing it right in front of out faces. The article purports that computer driven methods, etc., account for upwards of 70% of the US daily trading volume.
A good start to avert this situation would require every buy trade to be held 24 hours before it can be sold again. This would quickly level the playing field and move toward making the market an honest and rewarding american enterprise for all players as it was meant to be.......John R. Marecek...concerned investor.