This is exactly the kind of book he has written with Flash Boys - a book dedicated to exposing the rise of high frequency traders and exposing an industry which most do not understand and fewer have an interest in exposing.
What is Flash Boys about?
Flash Boys is the book to read if you are a lay person looking to understand how High Frequency Trading works. It goes through the industry participants, how the board has been tilted against investors in favour of high frequency traders and how you (as an individual investor) and large institutional investors are being screwed by the stock market which is meant to be clear and transparent.
So what is High Frequency Trading?
I don't want to ruin the book and get into the specifics because it can be extremely complex but broadly speaking high frequency traders have better and faster information than anyone else in the market and can use this information to trade faster than anyone else and make a profit in the market based on this information.
Most people don't understand High Frequency Trading because they don't understand how the stock exchanges are actually set up. They don't realise that most stocks are actually traded on multiple exchanges in a market. Why does this make a difference? Say you are looking to place a large buy order of shares in a market. Your broker sends it to exchange 1 and exchange 2 both at the same time. The high frequency trader sees it at exchange one (because your electronic signal gets there first) and then gets to exchange 2 ahead of you (because your electronic signal takes slightly longer to get there) and pushes the price up so you are forced to pay more. They are effectively front running you...and the system is designed to let them do this.
You as the investor get screwed because you are forced to pay a higher price than you would if you could have gotten all the shares at the market price. Although this affects large shareholders more than small investors the reality is that even as a small investor you end up paying more for your shares than you have to. The difference can be tiny but these tiny amounts add up to huge profits for high frequency traders.
I won't go into more detail - but will let you read the book. It is a fascinating expose on a little talked about industry.
This book is great for any one interested in the share market...but it will not make you a better investor
I generally love books which