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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 695.17+0.2%Jan 12 4:00 PM EST

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To: Johnny Canuck who wrote (47728)4/13/2012 12:44:46 AM
From: Johnny Canuck  Read Replies (3) of 69696
 
Why so few investors trust the market

A trio of new trends is sidelining investors, who are losing faith that age-old stock strategies mean anything in an age of computerized trading.

Over the last decade, the march to democratize the markets has charged forward, with each new innovation or revamp heralded as making the playing field more even and giving smaller investors a greater sense of fairness and trust.

These efforts have yielded two tangible results: lightning-fast execution and slashed trading costs. The floor of the New York Stock Exchange is witness to this shift. The number of floor brokers has shrunk by half, to 1,500, in just five years. Actual trading on the floor is less than 10% of volume.

Taking the place of humans are those coldly efficient and incorruptible machines.

And yet despite these efficiencies, most investors find themselves questioning tried-and-true principles and strategies: value investing, technical analysis, momentum plays and even the simplest maxim, "buy low and sell high."

Poll after poll shows that investors feel the markets are tilted unfairly against them. What's worse is that investor skepticism is higher than it was before market "reforms" allegedly improved the system.



Will stocks save your retirement?

In its latest poll, released in December, the Chicago Booth/Kellogg School Financial Trust Indexfound that only 16% of investors said they trust the stock market. That is roughly the same l
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