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High Frequency Trading!

November 8, 2009

Not only people who do commercials or tell the news talk much faster than you and me, but the tendency is for humanity to speed up everything until disaster strikes. Behavioral economics says that the faster anyone could talk, the more information he would ‘squeeze’ into a limited time frame. In fact, it is cost effective to do every thing faster, albeit with more errors. The new ‘kid on the block’ is High Frequency Trading (HFT). It is akin to high frequency ‘Derivatives.’ It is only a matter of time before Congress fails to regulate the new ‘kid’ and markets collapse. My advice to those of you who follow my two books on the psychology of investing, forget Liquidity, Diversity, and now Frequency, and keep your B.L.A.S.H. intact. HFT takes the “A” out of B.L.A.S.H.. You can’t make money with stupid B.L.S.H., but you can have fun racing!

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