Its Hard To Play Follow-the-Leader in the Stock Market
Can we learn anything from the spectacular Goldman Sachs Group second-quarter 2009 report?
How could they earn such money in up and down markets? And if so, can their method be copied by Main Street as well as Wall Street?
The Goldman Sachs Group has been specializing in high-frequency trading, and now accounts for about 24% of all computer-generated trading on the NYSE. Their mathematical model/code has worked for them. These math models generally do well… until you hear of an eventual foul-up.
Mathematical formulas are not for Main Street. They are not even for many on Wall Street for very long. Think of some that failed in 2008 and years earlier.
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