70% of volume is wash trades by quants. or High frequency trading frontrunning client orders. 70% of revenue for SEC and exchange is from HFT operations and the operators of the HFT are the broker/dealers like who's earningsi is 20% from prop trading or HFT trading their own accounts. so why would the SEC or exchange limit o ban HFT? serious money know this and know there is nothing worthy of investing in equities. in equities you need at least 5% dividend or at least 10% to worth owning these stocks. there is nothing to worthy of investing. and what is wrong with t-bills and bonds if there is no inflation or growth. stocks can lose like 50% in price adn stocks can go to zero. you might was well buy bonds if the dividend is only 2% is the USD becoming worthless? and the FED main goal is to protect the value of the currency not by by printing money and giving the printed money to fat cats in wall street. quantative easing is printing money from thin air. oil is $80/barrel what deflation. all these mutual fund managers like legg mason bill miller who gets paid millions for doing nothign who make 3% management in managing paper to buy stocks is another reason to dump stocks.
In forex 90% is speculation. So what? Do you recommend doing away with currencies or with forex traders? One thing you have to learn and listen carefully. Stock valuations in the longer-term depend on company performance. Long term investors know that and that is why they think what you wrote is meaningless words. No matter what HFT or quants do, an AAPL is an AAPL AAPL 52wk Range: 159.42 - 279.01 http://finance.yahoo.com/q/bc?s=AAPL+Basic+Chart Who do you think lifted AAPL from 160 to 280 in one year? The quants? No, it is serious money that invested in a high performance company. When the serious money thinks AAPL has no more to go, they will pull out and then you are going to come and complain again that speculators hit you. No longer-term player cares about any broker front-running his orders because they mostly use limit orders. Fools that buy on market and remove liquidity, deserve to be front-run. As a matter of fact, it is time to make front-running legal so that it dissappears.
doggone, it sounds like a barrel of kerosene waiting to blow up. May flash crash is warning of the future.
this is elite traders..i don't care about investing. or giving money to rich people. as for apple 40% of revenue from apple is iphones ...these are phones. on pony trick company..one product making 40% of a companies revenue. the apple and google trade is done. i don't care about owning stocks as an small time individual investor..sure you mutual fund managers make money 3% holding paper. bond guys are making like 10% why own equities. that 1% is short term loan. 1-2 year there is no deflation. actually inflation incomes are dropping.. people who used to earn $100,000/year are not taking $50,000/year jobs.... the averge income has dropped. and with 10%-15% unemployment..
the regulators are already contemplating regulating forex leverage to 10:1 and there is no real leverage on intraday stocks,or futures and forex,it's 'fake leverage' as for commissions it's not $7/commission on shares and no such thing as no commission in forex trades or no load mutual fund transactions..your broker/market makers makes more money than the advertised commission or no commission for forex and mutual fund which is sames banning volume or 90% of volume
google makes up 90%++++ of its revenue from advertising, what kind of business model is that. Where is the diversification in their revenue stream???
Thats all it is, volume from individual investors has dried up, its the computers doing all the trading with much front running going on, the bots win 99.9% of the time. May 6th, 2010 was just a simple example what happens when algorithmic trading takes place.