High Frequency Traders, ‘Mom and Pop Investors’ Playing Different Game

Nov. 16, 2011 - PRLog -- Golden Networking’s High Frequency Trading Leaders Forum 2011 Singapore, conference that will provide the most up-to-date overview of cutting-edge developments and insights to build a competitive advantage in high-frequency trading to investors and traders, will take place at the SGX Centre.

According to Ken Kamen of Forbes, the headlines are the source of the data that’s generating the trades:

Dow Jones & Co. may be the most prominent but is not the only company that offers algorithmic news services that turn archival information and breaking news into digital bits and bytes. They subject the news to three kinds of analysis (is the news positive, negative or neutral; is it really news or just a news update; and how relevant is the news to a particular company), and they combine that with years of financial news coverage and information about thousands of companies and news categories. The result is data that goes directly into computers that fire off trades with almost no human interaction.

The subscribers to such data-producing services hope that lightning-fast access to and interpretation of the relevant news—and the program trading that it initiates—will give them sufficient edge to get in and out of investments before the news reaches other traders.

The New York Stock Exchange reports such program trading now accounts for more than 30% of its daily trading volume.

It’s as if Mom and Pop America, individual investors, are driving to their destinations in the right lane within the speed limit, while the left lane is a Formula One track where high-performance vehicles are constantly exiting and reentering from an infinite series of on- and off-ramps without any particular destination in mind.

High Frequency Trading Leaders Forum 2011 Singapore is produced by Golden Networking, the premier networking community for business executives, entrepreneurs and investors. Upcoming Golden Networking's Forums and Business Receptions include:

•   The Speed Traders Workshop 2011 Hong Kong, "The Present and Future of High-Frequency Trading" (http://thespeedtradersworkshophk.eventbrite.com), December 12, Hong Kong

•   High-Frequency Trading Leaders Forum 2011 Hong Kong , "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://hftleadersforumhongkong.eventbrite.com), December, 12-14, Hong Kong

•   The Speed Traders Workshop 2011 Sao Paulo, "The Present and Future of High-Frequency Trading" (http://thespeedtradersworkshopsaopaulo.eventbrite.com), February 1, 2012, Sao Paulo

•   High-Frequency Trading Leaders Forum 2011 Sao Paulo, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://hftleadersforumsaopaulo.eventbrite.com), February 1-3, 2012, Sao Paulo, Brazil

Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".

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