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Trading For Dummies is for investors at all levels who are looking for a clear guide to successfully trading stocks in any type of market. His recruits, later known as the Turtles, had anything but traditional Wall Street backgrounds; they included a professional blackjack player, a pianist, and a fantasy game designer. He describes how Dennis interviewed and selected his students, details their education and experiences while working for him, and breaks down the Turtle system and rules in full.
The brief but dramatic stock market crash of May 6, was initially thought to have been caused by high-frequency trading. In the aftermath of the crash, several organizations argued that high-frequency trading was not to blame, and may even have been a major factor in minimizing and partially reversing the Flash Crash.
However, after almost five months of investigations, the U. Securities and Exchange Commission SEC and the Commodity Futures Trading Commission CFTC issued a joint report identifying the cause that set off the sequence of events leading to the Flash Crash  and concluding that the actions of high-frequency trading firms contributed to volatility during the crash.
In the Paris-based regulator of the nation European Union, the European Securities and Markets Authority , proposed time standards to span the EU, that would more accurately synchronize trading clocks "to within a nanosecond, or one-billionth of a second" to refine regulation of gateway-to-gateway latency time— "the speed at which trading venues acknowledge an order after receiving a trade request.
The fastest technologies give traders an advantage over other "slower" investors as they can change prices of the securities they trade. High-frequency trading comprises many different types of algorithms. High-frequency trading has been the subject of intense public focus and debate since the May 6, Flash Crash. In their joint report on the Flash Crash, the SEC and the CFTC stated that "market makers and other liquidity providers widened their quote spreads, others reduced offered liquidity, and a significant number withdrew completely from the markets"  during the flash crash.
Politicians, regulators, scholars, journalists and market participants have all raised concerns on both sides of the Atlantic. She said, "high frequency trading firms have a tremendous capacity to affect the stability and integrity of the equity markets. Currently, however, high frequency trading firms are subject to very little in the way of obligations either to protect that stability by promoting reasonable price continuity in tough times, or to refrain from exacerbating price volatility.
In an April speech, Berman argued: I worry that it may be too narrowly focused and myopic. The Chicago Federal Reserve letter of October , titled "How to keep markets safe in an era of high-speed trading", reports on the results of a survey of several dozen financial industry professionals including traders, brokers, and exchanges.
The CFA Institute , a global association of investment professionals, advocated for reforms regarding high-frequency trading,  including:. Exchanges offered a type of order called a "Flash" order on NASDAQ, it was called "Bolt" on the Bats stock exchange that allowed an order to lock the market post at the same price as an order on the other side of the book [ clarification needed ] for a small amount of time 5 milliseconds.
This order type was available to all participants but since HFT's adapted to the changes in market structure more quickly than others, they were able to use it to "jump the queue" and place their orders before other order types were allowed to trade at the given price. Currently, the majority of exchanges do not offer flash trading, or have discontinued it. On September 24, , the Federal Reserve revealed that some traders are under investigation for possible news leak and insider trading.
However, the news was released to the public in Washington D. Octeg violated Nasdaq rules and failed to maintain proper supervision over its stock trading activities. Nasdaq determined the Getco subsidiary lacked reasonable oversight of its algo-driven high-frequency trading. Knight was found to have violated the SEC's market access rule, in effect since to prevent such mistakes.
Regulators stated the HFT firm ignored dozens of error messages before its computers sent millions of unintended orders to the market. According to the SEC's order, for at least two years Latour underestimated the amount of risk it was taking on with its trading activities. By using faulty calculations, Latour managed to buy and sell stocks without holding enough capital. The SEC noted the case is the largest penalty for a violation of the net capital rule.
In response to increased regulation, some   have argued that instead of promoting government intervention, it would be more efficient to focus on a solution that mitigates information asymmetries among traders and their backers. These exchanges offered three variations of controversial "Hide Not Slide"  orders and failed to accurately describe their priority to other orders. The SEC found the exchanges disclosed complete and accurate information about the order types "only to some members, including certain high-frequency trading firms that provided input about how the orders would operate".
The SEC stated that UBS failed to properly disclose to all subscribers of its dark pool "the existence of an order type that it pitched almost exclusively to market makers and high-frequency trading firms".
UBS broke the law by accepting and ranking hundreds of millions of orders  priced in increments of less than one cent, which is prohibited under Regulation NMS. The order type called PrimaryPegPlus enabled HFT firms "to place sub-penny-priced orders that jumped ahead of other orders submitted at legal, whole-penny prices". Nasdaq's disciplinary action stated that Citadel "failed to prevent the strategy from sending millions of orders to the exchanges with few or no executions.
This excessive messaging activity, which involved hundreds of thousands of orders for more than 19 million shares, occurred two to three times per day. Panther's computer algorithms placed and quickly canceled bids and offers in futures contracts including oil, metals, interest rates and foreign currencies, the U. Commodity Futures Trading Commission said.
The indictment stated that Coscia devised a high-frequency trading strategy to create a false impression of the available liquidity in the market, "and to fraudulently induce other market participants to react to the deceptive market information he created". The HFT firm Athena manipulated closing prices commonly used to track stock performance with "high-powered computers, complex algorithms and rapid-fire trades," the SEC said.
The regulatory action is one of the first market manipulation cases against a firm engaged in high-frequency trading. Reporting by Bloomberg noted the HFT industry is "besieged by accusations that it cheats slower investors. Advanced computerized trading platforms and market gateways are becoming standard tools of most types of traders, including high-frequency traders. Broker-dealers now compete on routing order flow directly, in the fastest and most efficient manner, to the line handler where it undergoes a strict set of risk filters before hitting the execution venue s.
Such performance is achieved with the use of hardware acceleration or even full-hardware processing of incoming market data , in association with high-speed communication protocols, such as 10 Gigabit Ethernet or PCI Express. More specifically, some companies provide full-hardware appliances based on FPGA technology to obtain sub-microsecond end-to-end market data processing.
Buy side traders made efforts to curb predatory HFT strategies. Brad Katsuyama , co-founder of the IEX , led a team that implemented THOR , a securities order-management system that splits large orders into smaller sub-orders that arrive at the same time to all the exchanges through the use of intentional delays. This largely prevents information leakage in the propagation of orders that high-speed traders can take advantage of. The IEX speed bump—or trading slowdown—is microseconds , which the SEC ruled was within the 'immediately visible' parameter.
The slowdown promises to impede HST ability "often [to] cancel dozens of orders for every trade they make". Unlike the IEX fixed length delay that retains the temporal ordering of messages as they are received by the platform, the spot FX platforms' 'speed bumps' reorder messages so the first message received is not necessarily that processed for matching first.
In short, the spot FX platforms' speed bumps seek to reduce the benefit of a participant being faster than others, as has been described in various academic papers. From Wikipedia, the free encyclopedia. Financial market participants Credit unions Insurance companies Investment banks Investment funds Pension funds Prime brokers Trusts Finance Financial market Participants Corporate finance Personal finance Public finance Banks and banking Financial regulation Fund governance In financial markets, high-frequency trading HFT is a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools.
For other uses, see Ticker tape disambiguation. Spoofing finance and Layering finance. Retrieved 27 June Retrieved August 15, The New York Times. Retrieved September 10, The Wall Street Journal. Retrieved July 12, UK fighting efforts to curb high-risk, volatile system, with industry lobby dominating advice given to Treasury".
Retrieved 2 January Transactions of the American Institute of Electrical Engineers. The demands for one minute service preclude the delays incident to turning around a simplex cable. This demand is not a theoretical one, for without such service our brokers cannot take advantage of the difference in quotations on a stock on the exchanges on either side of the Atlantic. Retrieved Sep 10, Archived from the original PDF on 25 February Retrieved June 29, Up against a bandsaw".
Retrieved May 12, Retrieved 8 July Securities and Exchange Commission. Retrieved August 20, Retrieved January 30, Buy Low Sell High: A High Frequency Trading Perspective. Jovanovic, Boyan and Albert J. Retrieved 27 August Handbook of High Frequency Trading. Identifying Trader Type Pt. European Central Bank This supports regulatory concerns about the potential drawbacks of automated trading due to operational and transmission risks and implies that fragility can arise in the absence of order flow toxicity.
Globally, the flash crash is no flash in the pan". Retrieved 11 July London Stock Exchange Group. Archived from the original PDF on Der Spiegel in German. Making Money from CFD Trading describes not only the reasoning behind and execution of her trading strategies, but also presents an honest, inspiring and often humorous discussion of her emotional journey as a trader.
Catherine gives a fascinating insight into the trading experience: She presents a range of opinions from industry experts and commentators, discussing day-to-day trading issues and sharing controversial market views. This book will give you an understanding of: This entertaining and hugely informative book is a must-read for anyone who wants to know more about CFDs and for traders of any financial instrument who want to take their performance to the next level.
Rae Diary of a Currency Trader A simple strategy for foreign exchange trading and how it is used in practice Author: Diary of a Currency Trader is Samuel J Rae's no-nonsense, full disclosure look at his approach to the retail foreign exchange markets. Samuel takes you through his personal journey and how he got to where he is today followed by a step by step, illustrated description of the strategy he uses and the principles that underlie his approach.
Having described the way he trades, Samuel then journals ninety days' worth of market operations with full explanations as to how and why he enters each and every trade, the results he achieves and his thoughts on the markets he operates in.
Fully illustrated and set out in an easy to follow format, Diary of a Currency Trader takes you into the daily operations of a retail trader to an unprecedented level. If you are looking to discover what it actually means to trade Forex full time, this book is for you. David James Norman Publisher: CFDs, or contracts for difference, provide the investor with unparalleled trading opportunities in today's volatile markets.
CFDs are derivative products that allow you to trade on the price movements of securities and indices without ever owning the underlying asset. They offer a leveraged, flexible, cost-effective alternative to traditional trading methods. You can go long or short and hedge open positions in other tradable instruments, thereby enabling you to trade whatever the market conditions. This book provides an essential guide to these exciting products.
Structured in five parts it takes you through everything you need to know, from basic principles, mechanics and strategies, through to understanding the psychology behind your trading, including: CFDs are an essential part of the smart investor's toolbox, and this book gives you everything you need to make the most of them.
Have you dabbled in shares or the stock market? And wondered what spread betting was all about and whether you should be doing it? Perhaps you thought it all looked a bit complex or was just for City boys? Now here is a new beginner's guide that explains - in plain English - how to do it, and how to make money from it! Spread betting shares can be dangerous: But it's not a world populated by pinstriped men waiting to rob you, steal your savings and do nasty things to small kittens.
And you never have to pay a penny in tax! This book shows you how. Robbie Burns, bestselling author of The Naked Trader, has been spread betting for years. He explains why it's an indispensable tool to use alongside normal investing or trading. Especially as you can make money even if the market goes down.
Robbie takes you through everything from how it works, to managing your risk, working out exposure, and how, often, doing nothing is the best move! He explains the ins and outs of successfully betting on shares in his trademark down-to-earth style, covering everything you need to know. From the simple stuff through to proven strategies, including those that can be used in different markets - it's all here. There are also behind-the-scenes visits to two top spread betting firms.
But it's a big, bad old world out there, and there are a whole heap of mistakes you can make, an awful lot of money you can lose. Rounding up spine-chilling traders' tales of spread bets gone wrong, and using all he has learnt from making silly mistakes himself, Robbie also helps you learn what not to do. This is the ultimate guide to spread betting - how to do it, have fun and hopefully make a few quid.
CFDs, or contracts for difference, have experienced a surge in popularity with private investors and traders. They are extremely flexible trading instruments that offer high degrees of leverage, the opportunity to go long and short and to hedge open positions in other tradable instruments.
However, CFDs are high risk, predominantly because of their gearing exposure, and anyone entering this market should fully understand the risk and rewards before they start trading.
Jeff Cartridge,Ashley Jessen Publisher: CFDs Made Simple is the essential guide for anyone who wants to make money trading CFDs Contracts for difference CFDs offer an opportunity to make your money work hard for you with the potential for large returns on little outlay. This book includes the information you need to know to get started trading CFDs, and it provides tried-and-true strategies anyone can use.
Inside you'll find information on: Accelerate Your Wealth helps just about anyone take control to invest directly with confidence using simple DIY stock market investment strategies. A common denominator among most new traders is that, within six months of launching their new pursuit, they are out of money and out of trading. High-Probability Trading softens the impact of this "trader's tuition," detailing a comprehensive program for weathering those perilous first months and becoming a profitable trader.
This no-nonsense book takes a uniquely blunt look at the realities of trading. Filled with real-life examples and intended for use by both short- and long-term traders, it explores each aspect of successful trading.
Trading for a Living Successful trading is based on three M's: Mind, Method, and Money. Trading for a Living helps you master all of those three areas: To help you profit even more from the ideas in Trading for a Living, look for the companion volume--Study Guide for Trading for a Living.
It asks over multiple-choice questions, with answers and 11 rating scales for sharpening your trading skills. Every change in price reflects what happens in the battle between bulls and bears. Markets rise when bulls feel more strongly than bears. They rally when buyers are confident and sellers demand a premium for participating in the game that is going against them. There is a buyer and a seller behind every transaction. The number of stocks or futures bought and sold is equal by definition.
Gary Klopfenstein,Jon Stein Publisher: For commodity traders and portfolio managers--a practical, hands-on guide to profiting in today's growing international cross rate markets. Cross rates trading is growing increasingly popular, fueled in no small part by banks and multinationals seeking creative strategies for hedging currency risk and speculators seeking profits from interest rate plays and exchange rate moves.
Trading Currency Cross Rates is the passkey to this vastly profitable financial sector. Written for the experienced trader moving into the currency futures and foreign exchange cash markets, as well as for the corporate portfolio manager seeking to limit company exposure, this professional guide covers the fundamentals of today's cross rates markets and delivers the step-by-step techniques needed to trade cross rates successfully.
Packed with charts and tables that apply over a broad range of international markets and currencies, the guide: Created especially for the Australian customer! Take advantage of the bestfeatures of these versatilederivatives CFDs enable you to have control over a wide variety of financial products for just a fraction of their underlying value. But with their potential for higher return also comes higher risk.
CFDs For Dummies gives you clear advice on how to make the most of these exciting products — while managing your risk at all times. Diversify your portfolio and increase your trading opportunities — trade across various financial instruments, including shares, foreign exchange, indices and commodities, within Australia and internationally Use stop loss orders and position sizing — manage your risk by knowing how much you stand to lose if you get a trade wrong, before you even open it Develop your trading strategy — analyse your trading behaviour, develop a trading plan and track your progress Work out short- and longer-term trading strategies — hold your positions open for only a few hours, or over several months Take advantage of short selling strategies — make profits in a falling market, or hedge your overall portfolio against short-term losses Open the book and find: How much to leverage your trading account How to manage trading across different time zones — and get some sleep!
Strategies to invest in commodity CFDs such as oil CFDs and gold CFDs Ways announcements and news releases can affect prices — and how you can manage this through your trading strategy How technical analysis can help you identify trading opportunities Whether you really need to spend a lot of money on your charting software.
This is the true story behind Wall Street legend Richard Dennis, his disciples, the Turtles, and the trading techniques that made them millionaires. What happens when ordinary people are taught a system to make extraordinary money? Richard Dennis made a fortune on Wall Street by investing according to a few simple rules.
Convinced that great trading was a skill that could be taught to anyone, he made a bet with his partner and ran a classified ad in the Wall Street Journal looking for novices to train.
His recruits, later known as the Turtles, had anything but traditional Wall Street backgrounds; they included a professional blackjack player, a pianist, and a fantasy game designer. For two weeks, Dennis taught them his investment rules and philosophy, and set them loose to start trading, each with a million dollars of his money.
By the time the experiment ended, Dennis had made a hundred million dollars from his Turtles and created one killer Wall Street legend. Covel, bestselling author of Trend Following and managing editor of TurtleTrader.
He describes how Dennis interviewed and selected his students, details their education and experiences while working for him, and breaks down the Turtle system and rules in full. He reveals how they made astounding fortunes, and follows their lives from the original experiment to the present day.
Some have grown even wealthier than ever, and include some of today's top hedge fund managers. Equally important are those who passed along their approach to a second generation of Turtles, proving that the Turtles' system truly is reproducible, and that anyone with the discipline and the desire to succeed can do as well as—or even better than—Wall Street's top hedge fund wizards.