Add me as a friend on Facebook! www.facebook.com Get DAILY growby10 Updates on Twitter! twitter.com In recent years, a confluence of factors created a new reality in the world of equity trading. The emergence of ultra sophisticated electronic trading methods, simultaneously with stock exchanges converting to for-profit and the sec’s Regulation NMS, have brought on an explosion in trading volume. Compounded by flawed regulation and lax oversight, this new marketplace is dominated by tech savvy, secretive, predatory and highly profitable trading programs, exploiting traditional investors who are usually oblivious. High frequency trading systems are proprietary computer programs whose automated algorithmic software initiates trades with the goal of collecting rebates from the exchanges and/or detecting institutional order flow, and then execute buy/sell orders ahead of that flow. These programs are designed to automatically front run investors. They have an information advantage, and they unnecessarily increase volatility, cause retail and institutional investors to chase artificial prices, make markets less efficient and systematically transfer wealth away from ordinary investors. They also have a huge market share, and thus often dominate the market and determine its direction. Their hidden cost adversely impacts the financial well-being of all of us. Some very large and well known Wall Street institutions are involved in this practice. Ever wondered how Goldman Sachs is making so much money so soon after the financial system nearly collapsed? High-frequency trading is one answer: recall that Goldman Sachs recently sued a former employee for allegedly stealing certain trading software Goldman said is responsible for substantial trading profits. Alan Schram is the Managing Partner of Wellcap Partners, a Los Angeles based investment firm. Email at aschram@wellcappartners.com
fasten your seat belt Dorothy, ’cause Kansas is going bye-bye
cry like a baby. “My favourite movie is Shawshank……” get a number and get into the human race you sellout
I agree with you you need to be ready to run with your money with all this criminality. I look down on people who wear ties these days as I think they are more likely to be untrustworthy. Sadly America is sending the planet broke by its underhand theft.
Hi I agree with your comment. America by sucking so much money out of the system is slowly bancrupting planet earth.
@itillbeme- is all your money in ONE bank?!?! Please split that up right now. After you do that..we can talk more. It is too dangerous to keep all your funds in 1 institution when the FDIC can NOT and will NOT pay you back more than $250K if that bank fails. Please take care of that ASAP.
i’ve hear the same from many people..but what proof is there?
Hello taineasy: With that knowledge, what do you suggest for someone who has $450,000+ sitting in a CD account drawing only 2.25% interest. Everywhere I look there is big risk of losing, and at this point, if we are not losing savings we are ahead of the game. Any pointers if you please.
I day trade for a company. It has been pretty ridiculous. It is so blatantly obvious that the market is manipulated. They will shake you out of positions consistently. Day traders know exactly what I am talking about.
new bull market !
@youri- FRONTRUNNING is BLATANT THEFT!!!…i want to a new video on this. thanks and please Sub.
He’s not telling the complet story about HF trading. He didn’t tell the part about the FRONTRUNNING capabilities of HF trading. Quess cause he makes money himself in the frontrunning and he want’s to hide that.
That’s true..world commodity trading, Foreign stocks, currencies.
It’s only a matter of time… I hope you’re preparing, and I hope you’re protecting what wealth you have. Foreign stocks, currencies, and especially precious metals. I know you prefer selling them, but I’m thinking either you have an easy way to sustain yourself outside the United States, or you don’t really understand exactly how bad it could really get.
As a senior economist at a major Canadian bank I can assure you this is, with zero doubt, a bear rally. Using economic terminology it is a secular Bull rally within a cyclical Bear rally. We are coming to the end of a long term credit cycle and it can not be fixed by any government with any amount of money. We are entering a long period of deflation and unemployment that will ultimately lead to hyperinflation. This will all happen within the next 3-5 years. IT IS UNAVOIDABLE.
Excellent video.
We are CLEARLY in a BULL MARKET, and have been since 3-12-09.
I like how the young metro suits who love the system think there is “nothing unfair about it.”
I never had enough money to enter the stock game…people are gonna lose EVERYTHING listening to these pretty blonde bimbos on tv telling them its going to be alright and reinvest…
Max Keiser did a scathing report on this months ago…check him out, he cuts to the heart of the matter, No chaser!!
I think that a lot of people are reevaluating what is an asset and what’s not. New studies show that the buy & hold strategy yielded less $ than if people had put the same amt of $ in long term savings. I think that the American Empire is going to collapse like Russia did in the 1990’s which also collapsed their currency. The dollar is not a sound currency. I’m building a business & in a couple yrs, I’m hoping to buy a small 5 acre farm, farming has been undervalued, it’ll be the new rich.
Doesnt your 401k have a cash equivalent?? I would continue with the 401k if your employer has a cash type MM account….
he tried to make it sound good. my sheep ears fell for it, as it was presented intellectually and i am not that smart so i turn off, watch american idol and forget it.
My higher self sees lies shrouding a truth.
Thank you Harry . Am hoping we can turn this around. fEELS LIKE AN OLD WEST MOVIE and theres No sheriff
Great, so the stock market is a bigger scam than I originally thought. I stopped putting money into my 401k on Jan 1 of this year and I know that a lot and I mean a lot of my co-workers did the same thing without me advising them to. I think that a lot of us now expect another dip in the stock market, probably just before Xmas. But I’m no expert.
@frontier – it gets a lot worse. stay tuned my friend
unbelievable how bloomberg spins this….attempts to take off all the sharp edges.
this is huge.
By the way Growby10….. excellent commentary… thanks for posting…. I need a drink….