with Michael Dubis, CFP
High-frequency trading (HFT) is a stock, bond, or other security algorithmic trading model that uses very fast (the fastest) technology to trade in and out of investments. So fast that an HFT model can go in and out of the same security in less than a second. So fast that some HFT firms actually have fiber optic cable connected directly to various market exchanges! I don’t think TDS or Charter offers that yet.
When markets keep rising, we can forget why a long-term mindset is valuable. In a nutshell, investing over the long term is one of the best ways to minimize short-term equity risk exposures. Market cycles do exist, can be long, and are unpredictable, and if you’re not managing for them, they can have a significant impact — both good and bad — on your portfolio.