Hello everyone if you are into financial markets for personal investing or professional then you all about 60 Minutes Interview with Michael Lewis. Michael Lewis describes how you, huge asset management firms, hedge funds and the small investor is being screwed on a second by second basis by the High Frequency Traders. High Frequency Traders are programmed computers that buy and sell securities in nano seconds ahead of the group I just listed. High Frequency Traders (HFC) accomplished this task by purchases the most advance and fastest computers and write programs. In addition, HFC will setup computers near the electronic exchanges and lay shortest distances fiber optic lines to out race you to all the electronic exchanges. If you have watched the 60 Minutes Interview please click the link and watch if for yourself. The interview will go into detail of how HFC accomplish this front running. http://www.cbsnews.com/news/is-the-us-stock-market-rigged/
I am very impressed of they discovered and accomplished this flaw in the financial markets. I am appalled that my desire to buy and sell is being exploited and front run. Since I am a small investor the cost is very minimal so minimal I probably overpaid probably less than $100 in my own personal accounts. However in my 401k that cost appears to be probably higher. If you have a 401k, pension fund, mutual funds in your own non retirement account or any other professionally managed account the cost is probably higher. The sum total impacts may be in billions of dollars per year. This is why I keep my strategies and investments simple. I use limits orders with fill or kill option that may increase my chances of getting the price I desire. I said may because I really dont know it works. I don't like the idea of being screwed which is why I am all for full disclosure and transparency. I dont own mutual funds, hedge funds or any professionally managed account because I have no idea what they are buying or selling. My investments are basic board market ETFs and stocks. The market maybe rigged but it will not stop me from investing.
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