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Today let’s look at how HFT’s and ALGO’s kill the small investor.
But first, some layman definitions.
HFT= High Frequency Traders.
ALGO=computer algorithms that calculate, transact, and execute trades in Nano-seconds. (Faster than the blink of an eye)
The big boys use these programs to trade their own accounts. Most of the time they purposefully trade AGAINST YOU.
Why is that important?
If you try to trade against them, you’ll get smoked…every time.
I realize that many of you never heard of these terms before but it’s the mindset of trying to beat the house that will be your downfall.
Think of it like Las Vegas. The odds are against you.
But, there is a way to work within the confines of these mega-computer programs.
First, you must avoid the mindset of trying to beat the system. Instead you must adopt a strategy that won’t take you out of your comfort zone.
By that I mean you must place a value (price) on a trade that you like and not worry what the market does.
Second, use Limit Prices on your buy and sell orders. That way you won’t get frustrated when the price jumps around like a jackrabbit.
Here’s the SECRET: It takes the emotion out of the trade. (Easier said than done.)
You can find out more about how to take the emotion out of a trade by going (HERE).
Every month we breakdown Wall Street jargon into easy to understand terms in our newsletter In Plain English.
Go (HERE) now and see for yourself.
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