Lunchtime Links: Man quits high frequency trading citing soul-erosion, starts storytelling website
May 30, 2012 Leave a comment
Dave Lauer, a former high frequency trader, has seen the light and is quite evangelical about it. ”I read Ayn Rand and subscribed to her idea that your worth to society is perfectly measured by the amount of money you earn,” he tells US site Marketplace. ”I followed the path of least resistance and with degrees in computer science and finance, I wound up in high-frequency trading in 2009. I thought I was happy. While the economy was falling apart, I was getting rich and so was everyone around me.”
The catalyst for change was the birth of Lauer’s daughter; “Suddenly I found myself thinking how I would explain my job to my future daughter. What exactly did I do to make so much money? What exactly was I doing to add value to the world? After two years in high-frequency trading, I could see how little value it actually created.
“I knew in my heart that I was nothing more than a leech, regardless of how impressive my trading algorithms were. The brain drain that sucked so many smart and talented people away from noble pursuits and into financial services to earn their fortunes made me question the very foundation of my economic assumptions. I decided to leave the industry and find a new path.”