What happens in a half-second of high frequency trading activity? The answer is a lot more than you'd guess or notice.
This video illustrates an actual half-second of trading in in Johnson & Johnson stock, slowed down so it takes five minutes to watch. Don't worry, you don't have to watch more than a few (slowed down) seconds to get the point. The size and scope of what is happening changes the game and the playing field.
The question isn't whether high frequency trading is about efficient allocation of capital or attempts at short-term market manipulation ... it is what you decide to do after you know it is happening and becoming the norm (rather than simply an understood but infrequent risk).
I love getting away from the business in order to work on the
business. That means stepping back from day-to-day issues, to look at
the bigger picture. It also means getting back in-touch with goals and
intent.
In a sense, the process acts like a compass, which sets the general direction for the journey.
Likewise, preparing for a series of meetings (like this) is similar to working on a business plan.
Arguably, one of the primary benefits of
creating a business plan has almost nothing to do with the plan itself.
Working on the plan, immersing yourself in the ideas and possibilities,
and ultimately choosing what stays-in, versus what's filtered out ...
there's magic in that.
Yes, the plan is important. But it is the planning that takes you from thinking ... to feeling ... to knowing. That's where you'll realize the true benefit of business planning.
Building Momentum.
Planning sessions often entail pushing, pulling, probing, and deep thought ... Sometimes you hear a question, and it takes the air out of an idea.
Other times a question helps you make a new distinction or consider an
alternate and better course of action. It is often two steps forward, then one step back.
Because of this process, I don't tend to focus on the direct 'answer' or outcome. Instead, I'm measuring whether we are building momentum in the right direction.
How to Tell You Are On the Right Track.
Even though I am analytical, over time, I've come to believe that one
of the best tools to measure whether you are on the right track is 'how
you feel'.
Have you ever gotten a phone call from someone, and when you saw or heard that it was from them, you wilted? In
contrast, have you ever become more animated and energized while
interacting with someone else? It is easy to recognize the difference.
Each person has different thoughts, people, or situations that trigger these positive and negative states.
In sports, this positive state is often referred to as being "In-the-Zone". It is also called "Flow".
It happens when someone is fully immersed in what they are doing, and
has a feeling of energized focus or awareness, full involvement, and
success in the process of their activity.
Being in Flow feels good. On some level, when you are in Flow, you know you're on the right track.
Take a look at the chart and let me know what you think.
A lot of smart traders are putting greater emphasis and focus on Asia.
More Than Half Of The World's Population Lives Inside This Circle.
Take a look at this simple, but eye-opening, take on global population distribution.
There are more Muslims in the circle than outside of it. There are more Hindus in the circle than outside of it. There are more Buddhists in the circle than outside of it. Moreover, the circle pulls all of this off while being mostly water and including the most sparsely populated country on earth (Mongolia).
Here is a 'smart-ass' card one of my kids gave me.
My son, Zach, and I ate a Hibachi restaurant.
As part of his Father's Day present, he didn't complain (much) about having vegetables on his plate or that different food items touched each other before getting to his stomach.
The EU unemployment rate set a new all-time high of 12.2 percent. But it's the youth unemployment crisis that's truly terrifying. In Spain, unemployment surged past 56 percent, and Greece now leads the rich world with an astonishing 62.5 percent.
According to the Atlantic, youth unemployment is bad for all the obvious reasons ,
including the big loss to future productivity and earnings. But Europe's
youth unemployment is strange, because we've never seen a generation
*this educated* also be this unemployed. For example, nearly 40 percent of Spain's
20-and early-30-somethings are college educated.
Is this the way you will get food delivered in the near future?
The video was shot in the U.K. Here in the U.S, there are FAA restrictions preventing this from being a near-term reality. But so are practical realities like figuring out how to ring the doorbell ...
Pretty cool, whether it is a PR stunt or a real initiative.
Dr. Michio Kaku, a professor of Theoretical Physics asks "What if we could find one single equation that explains every force in
the universe?"
Kaku explores how physicists may shrink the
science of the Big Bang into an equation as small as Einstein's
"e=mc^2." Thanks to advances in string theory, physics may allow us to
escape the heat death of the universe, explore the multiverse, and
unlock the secrets of existence. While firing up our imaginations about
the future, Kaku also presents a succinct history of physics and makes a
compelling case for why physics is the key to pretty much everything.
If you are even partially a geek, this is pretty good.
What Happens in a Half-Second of High Frequency Trading Activity?
What happens in a half-second of high frequency trading activity? The answer is a lot more than you'd guess or notice.
This video illustrates an actual half-second of trading in in Johnson & Johnson stock, slowed down so it takes five minutes to watch. Don't worry, you don't have to watch more than a few (slowed down) seconds to get the point. The size and scope of what is happening changes the game and the playing field.
via Nanex.
The question isn't whether high frequency trading is about efficient allocation of capital or attempts at short-term market manipulation ... it is what you decide to do after you know it is happening and becoming the norm (rather than simply an understood but infrequent risk).
Posted at 05:02 PM in Business, Current Affairs, Market Commentary, Science, Trading, Trading Tools, Web/Tech | Permalink | Comments (0) | TrackBack (0)
Reblog (0)