A New York Times article I read recently that describes high-frequency trading.
I was a little worried after reading this at first, but I don’t think that small traders need to be too concerned. Given that my holding periods may last from a few days to a couple of months, I doubt that any high frequency market manipulation could do any serious damage to my positions, other than costing me a few additional points of slippage. It might seriously impact day-traders though, since their performances matter largely on their fill prices. Any thoughts?