My good friend Robbie Vorhaus has just written an incisive and relevant article about how by following your  passion you will be not only happier but potentially wealthier and wiser as well. There are, of course risks, but his real conclusion is that if you’re doing what you love, whether it’s for yourself or for somebody else,  your life will be better and more fulfilling.

Dr. Doug Hirschhorn on Flash Crashes

A recent NYT article reports that flash crashes, like the one experienced in May when the Dow dropped over 700 points in a matter of minutes, are likely to continue on scales both large and small. Many place the blame on technology, specifically high speed trading.  Others take issue with the concept of high speed trading itself. In the article, George P. Schwarz, manager of Ave Maria mutual funds says, “[High speed traders] make a mockery mockery out of capitalism.” I disagree as I believe their existence represents the core elements of a capitalist opportunity. George, don’t hate the player, hate the game.

Now, whether high speed trading is a responsible endeavor or good for the stability and rationality of the markets is a different question. I think high frequency trading destabilizes the fundamental approach to trading and I question if it actually drives prices to identify the true market value. But, speculative strategies are just that, speculative. As for the typical equities trader, and if high frequency trading is a help or hindrance to individual returns, I guess that depends on which side of the trade you are on when the high frequency trades kick in. So trading has become quicker, much quicker, but that does not change the simple fact that no one is able to predict the markets with certainty. And that uncertainty alone allows for the opportunity for any trader to participate and generate positive returns. Trade well, Dr. Doug Hirschhorn.