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70% Of All Stock Market Trades Are Held for An Average of 11 SECONDS
Posted By admin On October 23, 2010 @ 3:46 am In Commentary | Comments Disabled
The Fourteenth Banker writes  today:
In the stock market, program trading dominates volume. I heard recently that 70% of trade positions are held for an average of 11 seconds.
As the New York Times dealbook noted  in May:
These are short-term bets. Very short. The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said
Similarly, FT’s Martin Wheatley pointed out  last month:
I know of one HFT firm operated out of the west coast of the US that boasts its average holding period for US equities is 11 seconds
And market analyst Peter Cohan writes  at AOL’s Daily Finance:
70% of trading volume on the major exchanges is conducted by high-frequency traders who hold a stock for an average of 11 seconds .
But as Tyler Durden points out , alot can happen in 11 seconds when the players are high-powered computers:
BATS “Flag Repeater”. 15,000 quotes in 11 seconds, dropping the ASK price 1 penny each quote from $9.36 to $8.58 and back up again.
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URLs in this post:
 writes: http://thefourteenthbanker.wordpress.com/2010/10/22/seeking-radical-solutions/
 noted: http://dealbook.blogs.nytimes.com/2010/05/17/speedy-new-traders-make-waves-far-from-wall-st/
 pointed out: http://www.ft.com/cms/s/0/ad7f31f6-c4cd-11df-9134-00144feab49a.html
 writes: http://www.dailyfinance.com/story/investing-basics/what-you-shouldnt-buy-in-the-investment-market-the-pundits-ad/19670374/
 11 seconds: http://marketplace.publicradio.org/display/web/2010/05/31/pm-why-we-dont-know-reason-dow-dropped-q/
 points out: http://www.zerohedge.com/article/its-not-market-its-hft-crop-circle-crime-scene-further-evidence-quote-stuffing-manipulation-?page=1
 Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/trichet/1%201%20Nanex.png
 Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43
 Image: http://www.infowarsshop.com/United-We-Fall_p_339.html
 84% of All Stock Trades Are By High-Frequency Computers … Only 16% Are Done By Human Traders: http://www.prisonplanet.com/84-of-all-stock-trades-are-by-high-frequency-computers-%e2%80%a6-only-16-are-done-by-human-traders.html
 Even the Little Guy Now Realizes that the Stock Market is Gamed, And Many Are Pulling Out Entirely: http://www.prisonplanet.com/even-the-little-guy-now-realizes-that-the-stock-market-is-gamed-and-many-are-pulling-out-entirely.html
 Average US Family Lost $21K in 6 Months Due To Property Values, Stock Market: http://www.prisonplanet.com/average-us-family-lost-21k-in-6-months-due-to-property-values-stock-market.html
 Corporate Media Spotlights Distortion of Market by High Frequency Trading: http://www.prisonplanet.com/corporate-media-spotlights-distortion-of-market-by-high-frequency-trading.html
 Repeal of the Uptick Rule: A Planned Program to Obliterate the Stock Market: http://www.prisonplanet.com/repeal-of-the-uptick-rule-a-planned-program-to-obliterate-the-stock-market.html
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