Sunday, September 11, 2011

A millisecond of added value

I have extreme difficulty understanding how day traders and stock brokers can actually find added value in a millisecond. That's also probably why I still fly coach, while they fly first class.

In my world however, everything we accomplish is done in discrete steps. Sure, these can be overlapping and/or in parallel, but we take increments to achieve our goals. Every step costs some effort, some investment, and the outcome is reaching the goal.

Now humans are simply not equipped to do stuff in a millisecond. We can type fast, talk quickly, run a 100m in 9 seconds and a bit, but a millisecond is simply too short for us to do anything with.

How in Hoff's name can anyone assign a money value to a millisecond? A stock that costs $ 0.002 more after a millisecond, makes a trader's day when he sells 100.000 of them.

When you're talking about this scale, and these numbers, it's no longer about skill, effort, achievement. It's all about luck, coincidence. Maybe intuition, but it is no longer possible to find cause and effect, because humans are not equipped to judge that at this scale with our own senses.

That also means, whether we get rich or poor, fail or succeed in meeting our goals, these are outcomes that we don't directly control. Unless you develop the senses to notice a millisecond, that is.

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