They must have not been in the right group. These ppl are the real players, and they will never be prosecuted. From 'Money and Markets'--- " Unfortunately, Wall Street is a place where a quick buck is often more highly valued than enduring long-term gains. And in the current liquidity driven market mania, these trends are becoming even more pronounced.
But even I, a 30-year market veteran, was astounded when I read that quantitative algorithmic trading (what you may know as "high-frequency trading," or large, rapid-fire transactions done primarily by hedge funds) accounts for 60 percent of the current daily trading volume, with the average trade lasting just 11 seconds.
I knew there was a lot of computer-driven high-frequency trading going on out there. But 60 percent, really?
Even-more-shocking was the 11-second trade duration. Wall Street is known for having a quick trigger finger, but I found these figures hard to believe.
So I placed some calls to a couple of Wall Street's most-experienced and longest-tenured investors. And to make sure I had all my bases covered, I also called a few of the new whiz-kid hedge-fund hotshots.
And sure enough, while no one could confirm the precise numbers, they all reported that 60 percent and 11 seconds seemed about right to them. Each time, I hung up the phone saying, "Wow, 60 percent and 11 seconds, really!" The average high-frequency trade done by supercomputers lasts just 11 seconds. The average high-frequency trade done by supercomputers lasts just 11 seconds. I know a lot of these short-term speculators. They come armed with their advanced degrees in quantitative mathematics, physics and computer science from some of the best universities around the world.
They are highly trained in multi-variable calculus and abstract math. They have the most-current financial information beamed to them instantaneously, and they possess the most-advanced computer technology available on the planet to act on it.
They work for places like Goldman Sachs, JPMorgan and Deutsche Bank. They are the modern-day version of America's gunslinger from the Wild West era, just looking for a shoot-out on Main Street or at the local corral.
Trying to beat these fast-money traders at their game is a fool's errand. You might get lucky once or twice. But, sooner or later, you will meet your demise because their information and technology advantages are too big. Simply put ... you are out-gunned.
