When it comes to high frequency trading (HFT), you need to buy stocks, writes Mike Loomis
Traders need to know what the market is doing, which is a bit different from what investors do.
But the basic principles of HFT are the same, and that’s why traders need to understand it.
Traders don’t just need to sit back and wait for the market to change, they also need to be prepared to react, Loomi writes.
This is where trading economics (TECH) comes in.
Tradists need to track and evaluate their trades, he says.
They need to evaluate how they are performing relative to what they had hoped for.
They also need the ability to act on a move or a short sell to capitalize on an opportunity, he writes.
These skills can be taught through various courses in the stock market.
They can be developed through experience and through experience, Lomos advice goes on to say.
Trading economics can be a bit daunting.
But Loomias is confident that a skilled trader will be able to take the courses, and gain a solid understanding of what he or she is trading.
“Trading in the high frequency space is a lot like running a business,” he says, “you have to be able and willing to be a part of the process, to be flexible and to have that ability to respond to changing markets and the opportunities they present.”
This ability is why you need an investment manager like Joe Sommers, he adds.
Sommars, the chief investment officer of Sommes Capital Management LLC, has an undergraduate degree in economics and has extensive experience in high frequency stock trading.
The company manages more than $3 billion of assets and oversees $300 million of assets, according to its website.
In a video Loomius posted on Facebook, Sommiers is shown discussing the importance of having someone who understands the science of trading.
You want someone who’s got a solid grounding in the science and knows what they’re talking about, he said.
It’s also important that you understand that trading is a skill.
You need to have an understanding of how your trades work.
When trading in the low frequency space, the market tends to move in a very predictable way.
Somes said there is a reason that he likes to say that trading in low frequency has to be like running your own business.
“The fundamental idea is you have to have a vision for what you’re going to do in the market,” he said, adding that the market’s movements will shift.
The ability to adapt to changing market conditions is also important, Lomsons advice says.
“The key thing about low frequency trading is that the trading environment is unpredictable,” he adds, “so it’s critical to have good data about what’s going on and the markets are going to react to that.
A lot of people will try to predict the market movements of a stock, but it’s going to be very difficult.”
It’s important to understand the data you are looking at, he goes on, but also to be ready to act if you feel the market has moved the wrong way.
This ability to react is important, he continues, because it helps you understand what is going on in the real world and how the market will respond.
Sommers says he’s confident that he’ll be able learn all of this and still be able “to execute well in the next few years.”
Lomos adds that, if you want to know how a trading strategy can help you better predict the performance of the market, you’ll need to take a course with a market-research firm.
TECH is a good way to learn how to trade, he tells the audience.
You need to become a market maker, he explains, and you need that knowledge to understand what the markets will react to, what is likely to happen and what is unlikely to happen.
“If you have that information, then you can use it to improve your performance, whether you’re in the hedge fund or if you’re trading in a stock market,” Loomins said.
“You need a background in high-frequency trading.”
“If you want a good understanding of the stock price movements, you need a firm like Joe and Sommbers,” Lomoes concludes.
“And they’re going have a lot of good information to share.”