How High frequency trading is changing Wall Street

Can you imagine that computers process new information in a matter of milliseconds and act accordingly. So whatever you do on a certain news you are alreday too late. They are run by algorithms and they are fast and accurate. Valuations dont matter anymore in Wall Street, it seems market as no day to day memories of price action.

Its all about the price action, just remeber the Flash crash. Because of one algorithm mistake we had significant dropdown in prices. Computers already exit positions when you even process information and make your move. Yes you can participate in the market on long term basis, but what about on intrading day basis.

 What is Wall Street changing to?

Lessons learned - part two

Here is the second part of lessons:

1. Training, training, training - nobody has become professional with a lot of training. This goes for trading as well. You can read hundreds of books but that still doesnt make you a professional trader not even a begginer. Yes books are important but practice is as well.

2. Pattern recognition - in time you will be able to recognize patterns and act in accordance to this patterns.

3. Markets evolve - markets change all the time. You have to learn all the time in order to stay in touch with the markets otherwise time and change will put you out of business.

4. Emotional stability - you be prepared for drawdowns and not become emotional instable. Every path has its ups and downs.

5. Finding your type of market - some markets are more volatile than others, as it goes for the stocks. You must find how much action suits you.