Saturday, February 2, 2013

High Frequency Trading: Waiting For The Next Flash Crash

An excellent infographic on one of the most important and least discussed issues in the stock market today: high frequency trading. I believe there is another flash crash coming that will be larger than the last, as there have been no changes made to stop it from happening again. When it arrives the specter of high frequency trading will finally come under the microscope. Until then, trade with caution. Click the bottom right icon on the graphic to bring it full screen:


For those looking for more information on high frequency trading I highly recommend reading the book Dark Pools, which was released last year. It takes you through its origination in story form and will open your eyes to what really takes place in the market every day. Hint: The average investor has no chance of winning and in many ways is robbed blind every time they put in a buy or sell order.

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