Open trading account 
This weekend on CBS channel the 60 minutes show has put on the spot line the things that are currently wrong with the stock market. Not only that it exposed the bad thing that HFT is doing to the market place but also it seems that after the show has exposed those HFT "games" FBI is now probing HFT. FBI said to probe High-Frequency Trading over abuse of information.
Also the mainstream media has generate a lot of Buzz around this subject in the last 48 hours. Of course there is more behind the curtain and behind this propaganda is the almighty Goldman Sachs which it seems that they are backing the guys behind the pseudo dark pool exchange IEX who are the main characters of Michael Lewis new book "Flash Boys". Of course you can see the merit and why Michael Lewis is aggressively promoting his book but this doesn't makes his claims to be false either.
Basically this show was all around the idea that the HFT are front running your order, and it all happens in a fraction of a second. To give you an example of what does this means, lets supposed you wanna buy shares of XYZ company, this HFT are anticipating your trade, they send to the exchange orders to buy XYZ shares to one exchange, in front of you, lift the price and than, they already know you wanna buy those shares, so they sell those shares to you at higher price through another exchange, and they book the profits, and keep in mind that everything, the whole process, happens in milliseconds. Market microstructure has become too complex those days that not even regulatory agencies can explain it. Don't read me wrong, HFT can create the illusion of a deeper market and they can even distorts the short term price action but they can't alter the bigger trend. Big banks have always front running their "smart money" orders and trade against the uninformed speculator, so there is no new news here.
The 60 minutes show was more than just HFT it also interviewed Tesla CEO Elon Musk who is such a big inspiration. The things he accomplished with is life are just remarkable from being the CEO of an electric car company and at the same time the CEO of SpaceX, a builder of rocket ships, a man with a vision and big dreams.
Also last night CNBC got on fire after Lewis explained how HFT traders exploit the system but on the other side we had BATS CEO defending this HFT practices. Hard words were flying from both sides and also if you are on twitter it just exploded
during the show as everyone was speaking about it. Finally the HFT "game" was getting the exposure it has deserved, after LIBOR scandal, Gold market manipulation, London FIX, and last but not least FX market rigging scandal.Many things can be said about this subject but I want to end my rant here.
If you haven't watched the show I encourage you to see it here: Is the US stock market rigged?
Best Regards,
Daytrader21
