Reagan Charles Cook

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Who Controls the Market?

It's been estimated that 70 percent of the volume of trading on the stock exchanges is done by something called flash traders, which are basically computers that buy and sell stocks and hold them for about 11 seconds on average. All of the discussions around what moves the market, the economy, politics, regulations, company earnings it’s really all out the window given there’s just no way that a computer holding and selling a stock in 11 seconds is going to be able to do all of that analysis. Essentially, there’s no clear-cut explanation for why stocks move up and down every day. And frankly, the fact that we have media trying to make these reports about how it’s related to this or that is just not very helpful for the average investor.