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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bob Frankston who wrote (34736)	8/1/2010 5:55:24 PM
From: axial	Read Replies (1) \| Respond to of 46821

Bob, we've institutionalized the problem because legislators and regulators are baffled by BS. HFT operates on the same principle (or lack of same) as ticket scalping, except that it's empowered by access to huge amounts of capital and advanced technology. HFT isn't trading; it's a tax on trading. It piggybacks on the decisions of others. Once investors signal their intention to buy or sell, HFT traders corner the market in shares: the investor has no choice. Buy or sell through the HFT trader, at that trader's price - or don't do the transaction. Let's not get into the systemic risks; that's a whole 'nother aspect of the issue. Contrary to lobbyist representations, there's no value proposition here. It's indicative of what we've come to that markets are now governed by the morality and methods of ticket scalpers -- and by accident or design nobody with responsibility can think clearly enough to respond. We've been outwitted by thinking no better than that practiced outside a hockey rink, a rock concert or a basketball game. Street smarts win. The system loses. Jim

To: Bob Frankston who wrote (34736)	8/2/2010 9:30:34 AM
From: aladin	Read Replies (1) \| Respond to of 46821

Bob, Its not theft to act quickly on information. The morally correct side of all this is to find positive and negative trends associated with specific symbols. But, I admit there is always a dark side to all technology :-) A chip maker reports good news - you know his competitors, his suppliers, clients and the overall market. If your research tells you the companies direction your algorithms are preloaded to act on shorting or going long on all the grouped symbols as the play dictates. Some of the firms are data mining real time news feeds and adding that to the mix of their algorithms. John