Am I the only one who thinks this is pointless? I don't trade billions of dollars of equities, but I am a long-term investor.
One of my big rules as a long-term investor is that I can't sweat the 1/8ths and 1/4ths (borrowed from Philip Fisher).
The time I spend worrying about these high frequency traders getting a few extra cents out of me is time wasted finding great companies that are selling at a discount.
Sure... Its annoying, but if you really are a long-term investor a few tenths of a percent won't kill you.
'Uh, no. No, you don’t understand. It’s uh– it’s very complicated. It’s uh– it’s aggregate, so I’m talking about fractions of a penny here. And, uh, over time they add up to a lot.' -Peter Gibbons
Through competition among each other, aren't the HFTs reducing overall arbitrage opportunities in markets? Therefore, as a small-time, long-term investor, aren't I enriched by a highly-competitive steady-state level of HFT market participants?
Comments
Am I the only one who thinks this is pointless? I don't trade billions of dollars of equities, but I am a long-term investor.
One of my big rules as a long-term investor is that I can't sweat the 1/8ths and 1/4ths (borrowed from Philip Fisher). The time I spend worrying about these high frequency traders getting a few extra cents out of me is time wasted finding great companies that are selling at a discount.
Sure... Its annoying, but if you really are a long-term investor a few tenths of a percent won't kill you.
Who's to say you're on the wrong side of that 1/8th? HFTs have downside risk too.
Well, thats true. And humans are loss-hating creatures, so we tend to worry about that side of things.
I guess what I'm saying is that I don't care either way.
'Uh, no. No, you don’t understand. It’s uh– it’s very complicated. It’s uh– it’s aggregate, so I’m talking about fractions of a penny here. And, uh, over time they add up to a lot.' -Peter Gibbons
Through competition among each other, aren't the HFTs reducing overall arbitrage opportunities in markets? Therefore, as a small-time, long-term investor, aren't I enriched by a highly-competitive steady-state level of HFT market participants?