Markets Crash and a Chap In Hounslow is to Blame?

According the the Federal Bureau of Investigation and other regulatory authorities in the USA  a chap working from his computer in his three bedroomed semi detached home in Hounslow five years ago managed to wipe trillions of dollars off share values five years ago. As a result they have issued a warrant for the arrest of  Mr Navinder Singh Sarao on charges of wire fraud, commodities fraud and market manipulation and the UK authorities, subservient as usual to US demands, has geared its legal system to suit the requirements of the USA without getting anything back in reciprocation. Continue reading

High Frequency Trading: astonishing but not surprising

I have always failed to understand why stock market authorities around the world, whose job it is to regulate markets for the protection of investors, permit parties to conduct high frequency trading. High frequency trading, or HFT, is not really trading at all. Companies design algorithms which enable computers to spot market discrepancies that arise in a millisecond or less on the market, and then take advantage of tiny differences by putting in very large buy orders and then very large sell orders all within a millisecond or less. It is not really trading at all, but simply a competition as to who can figure out the most complex effective formula to take advantage of what is no more than a fractional dealing between something happening and something being recorded. Continue reading

The Global Casino

Learning from experience, my late partner Mark Braier use to tell me, was the definition of intelligence. If you bang your head against the wall experience should teach you that banging your head against the wall is never a good idea and you do not bang your head against the wall again. Most people have sufficient intelligence to learn from experience in most walks of life but when it comes to investment and buying and selling shares and stocks and commodities they show a naive faith in systems. Continue reading