You are right! We made OUR decision based on the available info and we committed our money to that position - usually in one or more (usually a small number) of buy hits. And of course, one of the factors in the number of times we invest - although perhaps a small one, depending on the extent of our investment, is the cost of brokerage.
However the brokers have no such requirement! BOT trading means they can manipulate their buys and sells to reduce the a) impact on the sp stats and therefore b) sp movements, c) give the appearance that there have been many sellers or many buyers (all legitimately!).
So, having committed to becoming a SH, a small loss is considered acceptable, over the length of the holding, believing that eventually (all things being equal) the sp should come good over time. However, there is no way of determining how BOTS and short trading will affect a stock - in fact it is to our complete disadvantage because we cannot rationally factor into our decision these influences.
And that is the final point - investing is supposed to be about rational behaviour - but this cannot be done satisfactorily if outside factors cannot be qualified - no wonder we still call our investments a "punt".
CNP Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
