High frequency trading, as well as algorithms, momentum investing, quant managers, flash trading and more- are all the direct opposite of Buy and Hold Value Investing. These strategies probably are contributing hugely to the volatility (wide swings) you hear about in the stock markets from day to day. Does high frequency trading work? Hard to tell; it can seemingly work for certain periods of time. Nothing works if you do not find you are consistently growing your net worth as the years go by. Computer models run all these systems and make trades in nano-seconds. Algorithms are the collection of multitudes of information by computers and turned into buy and sell symbols. It’s artificial intelligence all the way. You are not studying the business of the company.
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