The Stock Market is Rigged? Hell no!
Over the past week there's been a buzz around the investment community. An author and trading programmer, Michael Lewis, suggested that the stock market is rigged. The primary support behind this argument is that computer programs have the ability to trade at a much faster frequency than the average investor out there. Fast trades means quick price spikes and dips.
Oh heavens no - quick spikes and dips? What will we do?
Give me a break. The people complaining about computer trading programs are the equivalent of those that complained about the evolution of cassettes to CDs.
If one wants to survive and prosper in life, he needs to learn to adapt to the changing environment around him. The same trading strategy he's used for 30 years may not still be the most ideal strategy.
Myself, computer trading programs only HELP my gains. They help push stock prices to irrational levels - both up and down. Irrational levels = $$$ for investors able to control their emotions and invest wisely.
If these are the gains I earn during a rigged market, then I never want it to be unrigged.