This is the period that neither FA nor TA able to work. Professionals applying TA and FA cannot compete with AI using high speed computers.
High frequency trading (HFT) is putting on and taking off positions so rapidly that it’s really only made possible by using current technology
The practice of HFT would disrupt the normal market activity by investors with high volume trading without consideration of fundamentals of a company, and that could be the main reason of the high volatility the past two weeks, and professionals like fund managers had been blaming on this trading practice for the volatility as it was claimed that about 60% of volume was generated by such HFT practices. Such trading practice ignores the basic concept of investing in a company basing on fundamental analysis and long term investment to reap capital gains as a company grows its value with time.
High frequency trading ignores all fundamentals, and disrupts technicals. The high frequency trader may start the day with zero invested and ends the day with zero invested, but with gains. All that has been done is manipulation of the market for personal gain. There must be ways to curb or regulate such disruptive practice in the stock exchanges and foreign exchanges.
For more reference, read Wikipedia:
http://en.wikipedia.org/wiki/
High frequency trading (HFT) is putting on and taking off positions so rapidly that it’s really only made possible by using current technology
The practice of HFT would disrupt the normal market activity by investors with high volume trading without consideration of fundamentals of a company, and that could be the main reason of the high volatility the past two weeks, and professionals like fund managers had been blaming on this trading practice for the volatility as it was claimed that about 60% of volume was generated by such HFT practices. Such trading practice ignores the basic concept of investing in a company basing on fundamental analysis and long term investment to reap capital gains as a company grows its value with time.
High frequency trading ignores all fundamentals, and disrupts technicals. The high frequency trader may start the day with zero invested and ends the day with zero invested, but with gains. All that has been done is manipulation of the market for personal gain. There must be ways to curb or regulate such disruptive practice in the stock exchanges and foreign exchanges.
For more reference, read Wikipedia:
http://en.wikipedia.org/wiki/
QUANTUM BINARY SIGNALS
ReplyDeleteProfessional trading signals sent to your cell phone every day.
Start following our signals today & gain up to 270% daily.