From Daily Finance: High-Frequency Trading -Just a Lot of Noise

High-Frequency Trading: Just a Lot of Noise

High-Frequency Trading: Just a Lot of Noise

Back to the basics
For starters, let’s remember why there’s a stock market in the first place. When companies are getting started, they might need extra cash to carry out their stated mission. By selling the company to public investors, management gets the infusion of cash that’s needed.

When you buy a stock, you hypothetically have a right to a portion of the free cash that company generates. In reality, though, the most direct path you have to prove you’re an owner of a company — other than voting on your proxy — is through the dividends you receive or money you’re paid if a company gets bought out.

We at the Fool have repeatedly tried to show that buying companies that you’re proud to own for the long haul is the best way to share in the financial benefits of the world economy. Checking your portfolio on a regular basis can be hazardous to your health — and wealth — and could cause you to miss the more important things in life.

Put simply, getting overly hyped about HFT doesn’t make sense for the long-term investor, and it isn’t going to do anything but get you all worked up and stressed out…

 

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About yocijourney

God does not play dice
This entry was posted in Articles, Breaking News, Business, Finance, High Frequency Trading, Insider Trading, Market Making, Regulatory Updates, SEC, U.S. Economy, Workshops, World Economy and tagged , , , , , , , , , . Bookmark the permalink.

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