Question

How do day traders beat high frequency trading?

Answer 1

High-frequency traders cannot makemoney on spread out trading, by holding onto a stock there is nothing for them to capitalise on. The advantage they have over individuals is the ability to make many trades within milliseconds and investing over a longer period of time takes this advantage aw

Answer 2

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• Market Making – Bid Ask SpreadsAnother popular high frequency trading strategy is to post limit orders on both the bid and the ask. Depending on the order in which they get filled, a firm effectively scalps ticks at a time. The profit is extremely small, and oftentimes so is the trade size.