Average stock ownership: 22 seconds
Computerized high-speed trading accounts for most trades, experts say.
The average time a stock is held is 22 seconds. But that's an improvement from a year ago, when it was 20 seconds, according to analyst Michael Hudson, an economics professor at the University of Missouri.
It's all because of computerized split-second trading. "The financial sector is short term," Hudson said in an interview. "They talk as if they're long term."
Wired has an excellent overview of how computerized trading has taken over Wall Street. It's so bad now, in fact, that computers now read news articles at lightning speed, searching for key words that will help them buy stocks. Post continues after video:
"The machines aren't there just to crunch numbers anymore; they're now making the decisions," Wired reports. Computerized high-frequency trading makes up about 70% of all trades, experts say.
How can the individual investor compete with that?
Copyright © 2014 Microsoft. All rights reserved.
These hot movers could rise by double digits in coming months.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.