High frequency traders took part of the blame for Wall Street's flash crash on May 6, 2010. Just what is high frequency trading. Nightly Business Report explains.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: From the second floor of this nondescript building in Red Bank, New Jersey, the high frequency trading firm Tradeworx buys and sells huge volumes of stocks in the blink of an eye. Tradeworx uses computers programmed to detect small price movements which can be exploited by nimble trading. Founder Manoj Narang says the strategy can be traced directly to decimalization, a rule change in 2000 requiring quotes in dollars and cents instead of fractions. That cut profits for market makers from several cents to a fraction of a penny per share. The only way to make money was to increase volume.
Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you even if all you can spare is $20 a week to invest!
ReplyDelete=============
Buy Penny Stocks
This comment has been removed by the author.
ReplyDelete