Since over 70% of volume is HFT now is there any such thing as trading others "emotions" or "psychology" anymore or is it basically just hopping on the side of the stronger robots? Thoughts are appreciated.
There was never a "reading emotion" edge. Unless of course you knew SAC was depressed and going to dump Apple--or another big player// otherwise the emotion angle is bogus.
So thinking of where "emotionally" or "psychologically" others would stop out of their current open position isn't of any value?
Traders are going to get out a lot quicker if price moves from point a to b in 2 min instead of in 10 min. This doesn't matter ? This has nothing to do with emotion?
It's not a dumb question. It's a difficult one. Not so easy to answer. Psychology and emotions play a major role in discretionary trading (particularly among inexperienced or ineffective traders). How will this be affected by robotic trading? I don't know. I'm thinking much robotic trading, at least in the recent past, assumes that patterns that resulted from emotional trading will continue in the future. But I'm not sure that would apply to HFT, which it seems is something altogether different.