tag:blogger.com,1999:blog-307246258834168852.post6229215705386547869..comments2023-10-07T04:25:23.792-07:00Comments on dailywombat: Why You Can't Beat the Stock Market Through Active Tradingjfwasikhttp://www.blogger.com/profile/09765380482300292433noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-307246258834168852.post-78747192387631313442011-08-30T21:05:04.984-07:002011-08-30T21:05:04.984-07:00The larger question is this: for what are these pr...The larger question is this: for what are these program optimized?<br /><br />Some have said that stock markets are good because they optimize allocation of scarce capital, and that might have made sense back when trade were based on things as quaint as analysis of corporate fundamentals, with an intent of holding stocks for months or years.<br /><br />But a program that buys, sells and buys again within seconds doesn't really care about whether the traded company will be around in the next minute, much less the next year; efficient allocation of capital is meaningless. The sole criterion for activity is the speed and volume with which wealth can be concentrated.<br /><br />This is serious business.rewinnhttps://www.blogger.com/profile/14008105385364113371noreply@blogger.com