what on earth does gxy owe creat group?, page-8

stringtickler,
Wow--bot trading.
I remember one day sometime back in Aug09 or Sept09,before the share price took off, that 90% of the trades were for 10 shares or less.
It would take half a day to increase the volume by 1,000 shares!
Then it ended dramatically,when the SP ran hard to above $2.00 and then it started again but at a higher volume.
I have found that bot trading mainly occurs when a share is 'range-bound' on low volume when traders are bored.
In the US,bot trading has been linked to 'market manipulation'.There were examples given when traders would buy a few shares to give the impression of market depth near the close of trade only to 'dump' very large parcels near the close and smash the share price of that share severely.
There were days in the US when the Dow Jones index would move 100 points in the last 10 minutes of trading,up or down.
Manipulation was suspected,but never proven----it has since stopped.
The Australian Market is an easy target for 'shorters',because it does not have the depth of the US.
GXY are a particularly easy target,because on some days,there are no buyers and the sellers can severely affect the share price(such as Fridays after midday).
If the culprits are shorters,then they have to buy back the shares within 3 days---no problem if the GXY share price is reasonably stable or rising,but a catastrophe if the share price is falling in a thin market.
Bots are not shorters---nor are algorithmic programs.
Bots and algorithmic programs will buy or sell on tiny margins to make a few dollars for the operator.
The shorter to worry about, is the one who borrows the stock and sells no matter what,to trigger stop losses and then buys back at a lower price and comes back the next day to do the same,and so forth.
Every share has a reasonably defined pattern of trading and this can be forecast,except for some price sensitive announcements that can bugger them up.
Take GXY---we both know that GXY opens up most days and closes on or below its opening price most days.
Too easy to short---you sell at the open and buy back at the end of the day--that's how GXY only shows a small net short position for the day as reported by the ASX short selling report around 1 hour after trading commences the next day.
On a given day GXY can trade in a range of 5c from high to low,and that can make a shorter 3-4c per day profit per share every day.
You could do it,as could I-------Near the close buy 10,000 GXY.Next morning at open sell 10,000 GXY----bank the profit.Near the close buy 10,000 GXY and the next day's open sell 10,000 GXY------you could make $300-400 per day less brokerage per day----nice living !
If you are worried about the shorters,why not join them for a few bucks each day while waiting for share price to take off?
The bot traders are not doing this,nor are the algorithmic traders----they buy at $1.20 and sell at $1.22,but pay no brokerage fees.Sell at $1.22 and buy at $1.20.they can make a lot of money on 1-2c per trade on lots of trades across the ASX listed small to medium caps(whether the trade is for 1 share or 50 shares).
This is across all small to medium cap stocks(especially on quiet days).
If you can't beat them,join them----can be a bit of fun to kill the boredom---you know the daily trading pattern.
The only problem for you and me,is the brokerage per trade,but if you can trade with 10,000 shares per transaction,won't be too bad.
How is that for a response?
Come back if further detail is required.
Cheers.
thelynxx