More trading in a High Frequency Environment Discussion

[ImC00LyourNOT]

adapt or lose. stop bitching, the market does not care what you think about the participants in it.

[davidryan143]

i googled for something completely different, but found your page… and have to say thanks. i like your site.



[ramiraramira]

what algoritms? sounds like a conspiracy theory... algorimts cannot predict the future.

[sgomez858]

they can when it comes to looking 300 miliseconds in to the future. Thats long enough to disrupt intraday movements. Stocks are still going from point A to point B but for those of us who trade intraday price movement, you must be aware of what is going on here.

[highway79]

@ramiraramira they don't predict the future they actulay play in the present time while the truth is that you play the past .. for you second is a second for HFT second is 1000 miliseconds. Now you get it?

[xlasvegan7x]

Hi Steve & Andy, I was just wondering if this is the proper way to calculate margin interest fees:

borrowed 15000.00 on margin @ 9 percent for 3 days.. 15000 x 9 % divided by 365 days x the number of days borrowed which would be 3 in this case..is this correct?? Thanks again for the great vids and inpiration.

[lti12]

I actually looked into the covered call writing, but the percentage of return there is too small for the amount of risk you take

[dave997]

Stock trading is so much like astrology when you think about it. Astrologers look at astronomical patterns in planets and stars to try and predict future events. Stock traders do the exact same thing with the symbols that represent past price values that sometimes resemble a recognizable pattern that is likely to predict the future price of a stock (trying to predict the future). Analysts are like the same thing as Prophets. It's all the same concept.

[mbdharma]

You sound like the guy featured in the first Wall Street film series.. A fund manager, predicting market using astrology.. Sorry, no thanks.

[eddyvideostar]

Dave

The astrology that you refer to is too mystical and Satanic to have any place in the aspect of stock prediction. Ironically, the stock charts, patterns and indicators are used to reduce risk, not to predict the future. Every trading school, professional trader,author, teacher will indicate that with every trade a stop must be established. Why would the greatest traders make a stop loss mandatory? Why do they not speak of just a trailing stop when they are "always" ahead on "every" trade?

[kouznetsov]

thanx for sharing

[jyflyd]

just wondering, do you hedge your swing trading account with some short positions?

[andyatm2000]

Yes, I usually hold some SDS just in case I wake up to another Dubai.

[goldenshots]

Hey Andy (or Steve), I have one question. What would be a catalyst (besides really really bad news) to make the market break out of these damn Doji's?....or are we going to have to wait until this HFT becomes regulated?

[andyatm2000]

Unfortunately, I think HFT is just another component of the electronic evolution in trading and is here to stay. Banning "flash" orders would help but I'm not holding my breath. As far as the doji patterns, I don't think we need a catalyst just some strong selling pressure for a while. I'm afraid any upside move is going to continue to just gap and creep higher.

[goldenshots]

well said Thank you

[carparthero]

Thank You Andy for your great video. Very educational and honest. Keep plugging away and best wishes for the rest of Dec. and 2010!!

[kosai19]

It's the result of government being over involved and creating a moral hazard which stops the free market system from working. I think high frequency trading is only one component of it.

One consideration would be the Forex market. The swings each day are quite large and the amount of market noise is much less.

[cosmicguerilla1]

at last someone who speaks the truth !

CHEERS

[knockonyourbackdoor]

Thanks for the video. You were able to get into some stocks that did nicely. The dojis in SPY don't matter much then.

[prudentinvstr]

Thanks for the post.

[wilddog9x]

Hey Andy/Steve. Great vid. Quick question... what kind of tax do you have to pay on day trading?

[andyatm2000]

As long as trading is your main source of income the profits are taxed as ordinary income.