Great Wealth

Why Stock Brokers are (Dinasuars)

The End of Stock Brokers – Automated Trading Software

Enterprise cloud computing hype can cause confusion and keep businesses from taking advantage of its solutions.If you think that your money should be spent on a stock market venture, it might be smarter to just burn it yourself. The sad reality is that stock exchanges are not what they used to be. In fact, they’ve become just as dangerous as any other criminal gathering place you might find in unsafe cities or towns.

Let’s go back to the 1980s and explore the transformation of stock investment and technology. In the old days, you would deliver your order, a stock broker would compute the transaction and everything would be fine. A company’s stock price was determined by tried-and-true fundamentals, such as the underlying strength of its revenue model, its sales approach and, most importantly, the goods and services it provided to the wider economy. Investors could make qualified judgments based on these rather simple parameters, and as such, there was a lot of confidence to be had.

But starting in the 1980s, technology made it easier for brokerages to benefit from their own client’s behaviors. As commissions rose, so did side-along competition for prices that used computer innovations to process purchase and sales orders like never before. The digital trading movement began as a simple experiment in efficiency and is now ending in a nightmare for every investor on the planet.

If you haven’t heard of the term High-Frequency Trading (HFT), it might be time to start educating yourself. Essentially, HFT involves computer algorithms that process orders many magnitudes faster than any human can. This edges retail investors – like you and me – out of competition entirely, making it virtually impossible to keep track of price changes. Meanwhile, as human investors struggle to make sense of things, HFT algorithms skim pennies-on-the-dollar off every transaction and reap huge rewards for their controllers – in many cases, Wall Street banks and investment houses.

The last two years have seen many revelations about HFT. A series of flash crashes – when one or several assets craters in stock value before rising almost instantly – led federal investigators to conclude that algorithms might be culpable, but in all cases technological glitches were to blame. In such a regulatory environment, the average investor can’t compete simply because they cannot afford millions of dollars in high-tech equipment.

The problem is that the two main political parties are loathe to do anything. Their Wall Street paymasters have made them all too comfortable taking their “donations” and ignoring the issue of HFT until their careers are over. Sadly, their personal gain comes at the expense of every American who makes a decent living and wants to invest in an established or up-and-coming U.S. businesses.

Now you can use Automated Trading Software

That is beginning to change, however. The Robot Stock Trading Revolution is beginning, thanks to low-cost solutions for investors that allow them to trade at the same speed as the competition. Great Wealth Strategies can help connect you with automated trading software that gives you an edge that most investors would dream of. Best of all is the fact that our no-hassle business practice keeps you in the drivers seat. Why trust a stockbroker with your important financial decisions when you can maintain control yourself?