American Bonanza Gold Corp ABGFF

Computer Dominates Trading World

[Leafs007]

Danny D has a good article on computer trading (aka Algo trading) on how it dominates over 60% of trading especially the PM stocks. Computer trading is bad for the market and we could be in this dreadful trend for a very long time. Computer trading will keep PM stocks and other stocks down, down, down. It might be a good idea to get out if you can, and put ur money the authorities do something about this unfair, damaging computer trading. Is there a way to find out what companies are likely to be traded by algo? Or it does not matter to know since algo trade purely on technicals and they switch companies often.I wonder even if bza manages to produce 60k oz per year and increases its proven number, how much will bza gain? Or is this down trend due gold trading at sub 1400 per ounze? What can retail investors do to encourge authorities to put a limit or ban algo trading? If algo continues as it is the only option for retail investors (and institution investors) are to get out of stock market completely and put our money elsewhere. One day, if the trend does not improve this might be the option for a lot of us. Let the computers trade against each other and humans stay out!>

[Smiles48]

Finally someone else sees it.  I have been saying it all along.  The tsx is polluted by these HFT/algo trades, so our chances are close to nil.  They will beat us all the time, it's a math/probability game now.  The real problem is they pay these guys on volume trading, exchanges fees (ETF), so the more they trade, the more they make regarless of gain or loss during the

[Leafs007]

Good point. It is a double edge sword. If the computers are pushing this thing down, no wonder juniors have a very hard tkime to raise capital. If I have huge capital, at this point I would not do any pp or deal with a juniors because I will not get my any much ROI since the PS gets beaten up by these Algo trwding. Simply put, there is better place to put my millions than juniors s. Juniors

[Smiles48]

Agreed, that's why I'm back in the housing market.  I have a few coins left in the stock market and not putting one new penny back in.

[Leafs007]

You're lucky to have gotten out. I've still got a lot of coin sitting with bza and othe companies. It will be awile befor I can get out. I'll just have to close my eyes and sit this thing thru...>