2012-08-14marketshadows.com

Retail investors are realizing that the markets are manipulated and retail traders are learning that it's difficult to compete against the High Frequency Trading Machines. Zero Hedge revisited the reasons that human investors and traders are leaving the party: "The ‘what we lose in margin, we'll make up for in volume' strategy is failing. And for the NYSE it is failing large. The decision to ‘enable' HFT -- for its ‘liquidity-provision', which after all has done nothing but expose the dismal reality of a market structure designed to nickel-and-dime retail til the last penny drops, has had the absolute opposite unintended consequence of driving the only real liquidity provider -- the retail trader putting his real money to work -- out of the market.

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"As Securities Technology reports, the NYSE Euronext reports daily volume of trading stocks down 16.9% from a year ago (and down 17.8% YTD compared to last year) and down 9.9% from June alone. Trading in stocks on its exchanges in Europe were also down 12.3%. This plunge in stock trading has knocked into the derivative markets which have seen a massive 15.8% cliff-dive worldwide from June to July." (Stock Market Self-Cannibalization To Continue As Volume Implosion Accelerates)



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