Some Perspective on High Frquency Trading

There are conversations going on about High Frequency Trading. They are not talking about you and I they are talking about firms that have their databases right next to the NYSE data bases. They are talking about GS ect.. who through high frequency trading is providing over 40 percent of the volume on the NYSE. That is quite a lot of income to the NYSE. Whatever market place has a large amount of volume you will find these computer data bases that see order flow possibbly up to a second before you and I do and can react through computer programs much faster then you or I. This is gaming the system in every sense of the word. They are not buying stocks or shorting stocks because the think they are going up or down, the are trading stocks to game you and I. There interest is to take advantage of their preferred status in seeing the order flow to beat you and I and even institutional traders . These computers react on what they recognize by viewing the flow of orders then actually trade from the long or short side. We all should talk about this to our family friends and co-workers to expose this system which puts us ( institutions, hedge funds, day traders,mutual funds ect.. at a disadvantage to the amount of millions and millions of dollars a day. The playing field is not equal, far from equal. The computers are eating every trader and investors breakfast , lunch and dinner. When you recognize and understand what they are doing you can adjust and become a better trader. These orders that are shot out of these computers in milliseconds are never seen by the human eye . They are produced and entered automatically with out any human interaction. The only way to stop these orders from being sent is to turn off the computer program. Thats going to be hard to do when it increases volume by more then 40 % alone on the NYSE. Imagine what the other market places are making on these high fruequency trading mechanisms. It is WRONG. It is Unfair. It is right now a fact of life so when you are trading realize there are systems out there developed to push you to your limits on the pain you can take and adjust accordingly. Concerning trading, if you are not having success you must change your style do your homework, educate yourself every day about the market or you will get the same result, which is the definition of insanity: Doing the same thing over and over and expecting a different result. Be disciplined and most importantly , never never,never give up . I will be away for ten days starting Friday. Good luck, and trade smart.