Guest Post: The HFT-Induced Extinction Of Retail Investors

Via The World Complex blog, Invasive behaviour and extinction in the retail market   The term "invasive species" has been used to describe new types of plants or animals that have been introduced to a new area, whereupon they change the local biosystem. The sudden appearance of new lifeforms in an environment can cause rapid losses in some of the species present prior to this appearance. Biosystems are dynamic systems with considerable stability, and often the arrival of new species simply cause a slight change in the dynamics of the system, which continues on with only small cosmetic changes. On occasion, however, the new players cause overwhelm the stabilizing factors in the system, which undergoes dramatic changes, eventually stabilizing in a new configuration that is highly detrimental to many of the original players in the system. Which brings me to today's invasive species. Al...