Money Being Siphoned Off wall Street

I recently heard a gentleman on the radio discussing how there are traders on wall street that are hooked so tight into the market, that they can make a see trades several second before the average Joe sees the prices. This allows them to make quick trades before others, making a few cents per trade. They can execute hundreds of trades per minute. So after a thousands or so trades a day,at a few cents each, it is like taking candy from a baby. He stated that one trader was making as much in on day as the average American makes in 47 years. One trader told him, the longest he ever holds a stock is 2 seconds. In essence  siphoning money right out of the market. I no nothing about the stock market, so I was just wondering if this was possible.

3 thoughts on “Money Being Siphoned Off wall Street

  1. I don’t believe so. There are commissions to be paid when trading, and the commissions take place with every trade. Holding a position less than two seconds will rarely allow enough profit to cover the costs of commissions, leading to that trader going broke in short order. There are, however various strategies one can employ to predict what the market may do, which can be automated by computer. These strategies may or may not work, and they may work for a little while and then quit working. Some people are really smart, and they might develop an automated strategy that lets them get ahead for a while, but there are never any guarantees they won’t go broke all of a sudden.

  2. Yes it is very possible with computer trading and 3 level of quotes, the highest level never seen by the public but traders can see the orders coming in on the bid and ask sides. This gives them an advantage in seeing which way a stock may trend.

  3. I am sure there are many ways in the financial markets to work the gray areas, and for most people, they will take advantage of it given the opportunity. It is sad to see so many Americans struggling while a few select people keep cashing in over and over again. I used to be totally opposed to the people that said it was big business and banks that were the problem. But now, being middle aged and having 20 years experience in Information Technology, the fact that no one wants to give me a job that I am qualified for or even over qualified for, blows me away. I can fix anything computer related and I guess they are going for the young and not so experienced help. I never though I would be in this position. Thanks everyone for the support of this site. I will do my best to keep it fresh and going.

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