Tuesday, February 8, 2011

"It Has Become a Shark Tank and We Are the Anchovies"


Jim McTague - Washington Editor of Barrons - slams high frequency trading in his forthcoming book, Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market into a Casino.

McTague notes (via professor Robert D. Auerbach) that high frequency trading puts human traders at a huge disadvantage, who can get creamed by the high-speed algorithms:

It has become a shark tank and we are the anchovies.

For background on high frequency trading, look here.

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