About That High Frequency Trading…

By on April 9, 2014

I missed the 60 minutes investigation that set off a firestorm in the financial media last week. 

So, when I first heard “Flash Boys” I sort of wondering why everyone all of the sudden become obsessed with a gay Mardi Gras.

As it turns out I don’t have to hide my beads from my cousin – Flash Boys had nothing to do with boys flashing. It was a huge relief to me, as it must be to you as well right?

But lets turn a little serious – 

“Flash Boys” of course the new book, and instant best seller, written by Michael Lewis.

Lewis spent a year or so investigating the markets and he discovered, hold on…………

Take a deep breath…….Prepare yourself.

He discovered that, OH MY GOD!!! There is an advantage in speed, and if your an average, every day trader or investor you can’t compete with the new breed of High Frequency Traders.

Which is true – you can’t.

But I have great news for you. 

You don’t have to compete with them.

Not only don’t you have to compete with them – you can make their edge over you more or less irrelevant. 

I’ll even go a step further and say that if you are a short term trader, holding stocks for less than a month – you have benefited in a huge way by High Frequency Trading.

Let me explain: 

I first got involved with trading equites back in 1997. If any of you have been around a long time you will remember those were the beginning days of the revolution towards electronic trading and direct access to American markets.

When I started trading spreads, which now average 2 or 3 cents in real terms – were at least 25 cents. 

That means you more or less started off every single trade in the whole 25 cents – and if you traded in shares that averaged under around 1million shares a day it was more often $1 or more. 

Not only that but commissions ran in the neighborhood of 3 or 4 cents per share for each side of your trade.

And you had to route most of your trades to market makers or specialists, who then knew EXACTLY what you wanted to do – and traded against you.

In fact, they paid the exchanges millions of dollars for memberships that allowed them to do just that.

And yet we still made money. Often loads of it.

And I have more good news for you.

The strategies and tactics that I used back in the late nineties still work today. In fact they work as well as they have ever worked because certain things will never change in the market. 

I’ve got a short video series coming out which I’d love to give you.

Put your email address in the box you see on the right hand side of this page and I’ll show you how how to beat the High Frequency Traders (and everyone else too) at their own game, and pull in steady profits trading High Growth stocks in the US Equites markets.

 

About Brandon Fredrickson

Brandon Fredrickson started trading in the mid 1990's. He has has helped thousands of traders reach their dream of profitable trading since 1998.

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