High Speed Traders

Laurie Frederiksen on

Does the impact of computerized high speed traders in the stock market concern you?

I thought this article was interesting. While it appears there is going to be more focus in the US to assess the problems it might be causing, others around the world are taking stronger action to try and contain it.

http://www.nytimes.com/2011/10/09/business/clamping-down-on-rapid-trades-in-stock-market.html

--
Laurie Frederiksen
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Roy Chastain on

Maybe I'm naive, but high speed trading does not concern me. While regulation restraints may result in a calmer market, it seems to me that HST has its biggest impact on retail investors who worry about the daily (hourly/minute) fluctuations in "the market." Having a much longer-term horizon for my holdings, HST is mainly static noise which I ignore.

Then again, as I said I might be naive about this phenomenon. I would like to read others' views.

Roy Chastain

"Good judgment comes from experience, and a lot of that comes from bad judgment."
Will Rogers

--- On Tue, 10/11/11, Laurie Frederiksen <laurie@bivio.biz> wrote:

From: Laurie Frederiksen <laurie@bivio.biz>
Subject: [club_cafe] High Speed Traders
To: "The Club Cafe" <club_cafe@bivio.com>
Date: Tuesday, October 11, 2011, 6:20 AM

Does the impact of computerized high speed traders in the stock market concern you?

I thought this article was interesting. While it appears there is going to be more focus in the US to assess the problems it might be causing, others around the world are taking stronger action to try and contain it.

http://www.nytimes.com/2011/10/09/business/clamping-down-on-rapid-trades-in-stock-market.html

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio

Chris Kiklas on

Roy, I agree with you 100%. I think the only people who should really be worried about the HSTs are other HSTs. When we started our club, we decided that our goal was to get rich slowly, and when you ignore noise like HSTs and minor bumps in the market, it all evens out in the wash when you make good, thoughtful, long-term decisions to begin with.

On Tue, Oct 11, 2011 at 10:10 AM, Roy Chastain <e4roy@yahoo.com> wrote:

Maybe I'm naive, but high speed trading does not concern me. While regulation restraints may result in a calmer market, it seems to me that HST has its biggest impact on retail investors who worry about the daily (hourly/minute) fluctuations in "the market." Having a much longer-term horizon for my holdings, HST is mainly static noise which I ignore.

Then again, as I said I might be naive about this phenomenon. I would like to read others' views.

Roy Chastain

"Good judgment comes from experience, and a lot of that comes from bad judgment."

Will Rogers

--- On Tue, 10/11/11, Laurie Frederiksen <laurie@bivio.biz> wrote:

From: Laurie Frederiksen <laurie@bivio.biz>
Subject: [club_cafe] High Speed Traders
To: "The Club Cafe" <club_cafe@bivio.com>
Date: Tuesday, October 11, 2011, 6:20 AM

Does the impact of computerized high speed traders in the stock market concern you?

I thought this article was interesting. While it appears there is going to be more focus in the US to assess the problems it might be causing, others around the world are taking stronger action to try and contain it.

http://www.nytimes.com/2011/10/09/business/clamping-down-on-rapid-trades-in-stock-market.html

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio

--
I want to cook for you! www.pamperedchef.biz/letscookwithchris

Cell: 281.650.5125

John Rice on

I am concerned about High Speed trading. In my IRA account and club account it does not impact me because like Roy and Chris I'm in for the long haul. But I am also a small time active trader that places 25% trailing stops on all of my trades. Unfortunately, a few days before the flash crash I purchased many stocks and then lost 25+% of my total active trading money within a minute.

John Rice

From: Chris Kiklas <ckiklas@gmail.com>
To: club_cafe@bivio.com
Sent: Tue, October 11, 2011 8:17:41 AM
Subject: Re: [club_cafe] High Speed Traders

Roy, I agree with you 100%. I think the only people who should really be worried about the HSTs are other HSTs. When we started our club, we decided that our goal was to get rich slowly, and when you ignore noise like HSTs and minor bumps in the market, it all evens out in the wash when you make good, thoughtful, long-term decisions to begin with.

On Tue, Oct 11, 2011 at 10:10 AM, Roy Chastain <e4roy@yahoo.com> wrote:

Maybe I'm naive, but high speed trading does not concern me. While regulation restraints may result in a calmer market, it seems to me that HST has its biggest impact on retail investors who worry about the daily (hourly/minute) fluctuations in "the market." Having a much longer-term horizon for my holdings, HST is mainly static noise which I ignore.

Then again, as I said I might be naive about this phenomenon. I would like to read others' views.

Roy Chastain

"Good judgment comes from experience, and a lot of that comes from bad judgment."

Will Rogers

--- On Tue, 10/11/11, Laurie Frederiksen <laurie@bivio.biz> wrote:

From: Laurie Frederiksen <laurie@bivio.biz>
Subject: [club_cafe] High Speed Traders
To: "The Club Cafe" <club_cafe@bivio.com>
Date: Tuesday, October 11, 2011, 6:20 AM

Does the impact of computerized high speed traders in the stock market concern you?

I thought this article was interesting. While it appears there is going to be more focus in the US to assess the problems it might be causing, others around the world are taking stronger action to try and contain it.

http://www.nytimes.com/2011/10/09/business/clamping-down-on-rapid-trades-in-stock-market.html

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio

--
I want to cook for you! www.pamperedchef.biz/letscookwithchris

Cell: 281.650.5125

Eric Resweber on

I tend to agree with Roy. Being long-term investors we shouldn't have to worry about high-speed trading too much. It is a concern, but it also sounds like the regulators are keeping an eye on it. There's not a lot we can do about it anyway.

So Roy, maybe you're not the only one who's naive about this.

Eric

p.s. Laurie, thanks for bringing this to our attention.

From: Roy Chastain

To: club_cafe@bivio.com

Sent: Tuesday, October 11, 2011 10:10 AM

Subject: Re: [club_cafe] High Speed Traders

Maybe I'm naive, but high speed trading does not concern me. While regulation restraints may result in a calmer market, it seems to me that HST has its biggest impact on retail investors who worry about the daily (hourly/minute) fluctuations in "the market." Having a much longer-term horizon for my holdings, HST is mainly static noise which I ignore.

Then again, as I said I might be naive about this phenomenon. I would like to read others' views.

Roy Chastain

MarilynandLee Warren on

I am concerned about anyone, individual or group, that can "manipulate" the market for unjust gain because that just perpetuates the problems of greed and gain at any cost. Doing nothing about it seems to me to be giving sanction to these kinds of practices whether it impacts me currently or not. It opens the door for the next player to up the game to a bigger and better scheme to "manipulate" for gain and that very well could impact me in the longer term. I feel investigation and restriction by severe monetary consequence is a step in the right direction.

Marilyn Warren

From: John Rice <rice.j1969@att.net>
To: club_cafe@bivio.com
Sent: Tuesday, October 11, 2011 8:48 AM
Subject: Re: [club_cafe] High Speed Traders