Every investor should read this article. It makes some good points.
- High Frequency Traders (HFT) have the edge because of their superior speed in placing trades.
- HFT use fake orders to gauge a market, then quickly place real orders to take advantage of what they learned. While these actions are prima facie market manipulation, the regulators have neither the time, energy or brains to deal with these violations.
- A regular investor should never use market orders, only limit orders.
- Eventually, a stock price is tied to the fundamentals. Find a good company and invest in it for the long haul, just like you learned back in the day.