Why would ordinary Americans invest in the Market when they know High Frequency trading is going on?

In today’s stock market you can’t get a reading if you should get back in the market because its a traders market not for investing in American Industry!!!

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November 7th, 2010 at 5:03 pm
I read a good book – mobs,messiah and markets and the fact is you can not be out of the market- how many Amerikans can spell HFT much less understand what they are up against.
By asking the question – you know that you are asking a redundant question
If they knew what was going on they would not invest
but then what – sit on the sideline and watch their savings get eaten up by inflation
November 7th, 2010 at 5:03 pm
Because their retirement money is sitting in 401K’s and IRA’s….. and these are invested in stock, bonds and mutual funds…. and the traders are playing around with their money… and we can’t control what the fund managers do..
Basically a lot of money is tied up that should be sitting in save and sound investments…. but is not.
November 7th, 2010 at 5:03 pm
If you are a long term investor, I’m not sure why reading the market would be important?? If you are doing some market timing, this might be a big deal. But if you are a joe/jane sixpack DCAing into a 401k or an IRA, I don’t see the significance.
November 7th, 2010 at 5:03 pm
Long term investing is not really affected by short term traders. obviously while short term trading relys on waves and cycles of price. the long term is looking for overall growth.
so if over 30 years the price moves up say 1000% it doesnt matter that the price moved up and down over and over again during that 30 years.
Crashes do happen from time to time. its not because of trading. its simply the way things work. every time the prices are over valued. they drop. and then move upward again.