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Re: BooDog post# 869

Wednesday, 11/18/2015 7:12:28 PM

Wednesday, November 18, 2015 7:12:28 PM

Post# of 2807
I was blown away this didn't take off on the IND filing. Then I started thinking about something I posted a while back on this board, this post Post 572.

Then I started researching algorithm trading and didn't realize how rampant it is and is a concern of the SEC and large investment firms like Goldman.

This is an article posted on Forbes written in 2011 regarding the average length of time to hold a stock:

http://www.forbes.com/sites/greatspeculations/2011/01/21/stock-market-becomes-short-attention-span-theater-of-trading/

According to the NYSE Factbook, the average holding period for stocks in 1960 was 100 months (8 years). By 1970 it had dropped to 63 months (5 years). By 1980 it had dropped to 33 months, by 1990 to 26 months, by 2000 to just 14 months, and in 2010 just six months.



I've read through articles regarding algorithm trading or algo trading and HFT or high frequency trading. I haven't been able to track the actual number but there are articles both supporting and attempting to debunk that the average time to hold a stock now is anywhere from 11 - 24 seconds. I believe it. I thought this was behaving by an algorithm for a long time and I believe it completely after watching today. I see what could possibly be spoofing as well, for which, for the first time, someone was found guilty of recently manipulating a different company's pps.

http://www.telegraph.co.uk/finance/financial-crime/11973903/US-seals-first-prosecution-against-stock-market-trader-for-spoofing.html

There are several other factors like dilution, swing traders/buy the hype sell the story bs, and other short positions, but this looks methodical to me.

Until this reaches $5 in the range of institutions, it's going to behave the same for a while. I think a stock below $5 is going to be susceptible because the above mentioned methods are successful by praying on the emotions of smaller traders like myself. I read one quote that the only way to beat high frequency trading is with low frequency trading. Let's hope the next 30 days go smoothly. I'm still a believer even though there are entities that are at play beyond our control, my opinion.

I'll remove my tinfoil hat now. :)

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