Hi Malaga,
I wonder how far the bot situation can continue. The strategy seems to stagnate stocks, and so brings the price continually down, for no apparent reason, even with excellent announcements. I am curious actually who benefits?
How does anyone make money on a stock where the SP is continually pushed down by a computer, and never really seems to increase? I guess the pip trading, is what drives it. However, the difference between the high and low will reduce, usually without announcements, so they disappear eventually, but leave behind their devastation of the SP.
Very worthy small cap and even larger investments on the ASX are being manipulated this way continually, and so in the end there is not even a small return over time, so everyone bails, so who wins?
Certainly not the company, nor the real shareholders. How long do you have to wait and how many years?
I certainly don't expect an immediate return, however, on good announcements, you sort of do expect even a small SP movement in a positive direction, and with more positive announcements, you naturally expect it to move upward, even slightly, nothing massive, but makes sense to me.
Apparently, with the idiots in control, this isn't how it works. I wonder why anyone bothers to invest.
It doesn't have to be at speed, as it is a growing enterprise and the announcements reflect that growing potential. Therefore, the SP getting pushed down constantly by bots/day traders, is a tad hard to understand, and really frustrating to put up with.
I must be dumb, but I don't get it. Why is there a continual obvious manipulation of the price downwards, it doesn't make sense to me, as how does anyone make a real return. I should add that I have observed this phenomenon over other stocks, and it confuses me, to understand the end game.
I understand the 'pips' trading of day traders to some extent, but they seem to me to over do it. Ultimately, as I have observed, they will kill of their continuing short term return in the long run, and so really kill off a company's SP, that had very real potential, to a point no one will trade.
They then still continually waste time trading to themselves for no real gain, even if the company has extreme potential. However, they usually over kill the 'goose that laid the golden egg', and so kill off trading in that stock for everyone, and funnily enough for themselves.
Tragic for the sensible shareholders, as a good company takes time to grow. So the long term holders hopefully just wait patiently to get past the idiots.
Bots and day traders should be limited to minimum trades, at least equivalent to retails traders, so the manipulation on the short term is more considered, than just trading one share to change a price, up or down, sometimes several pips even on one share traded. Sensible reflection of supply & demand needs to be represented so as to be considered a 'real' market.
Current trading on many stocks on the ASX doesn't represent supply and demand, just manipulation and greed, and even a real insult to the company actually producing real results.
It seems, idiots behind a computer, can trade one share and change the value of the company, how idiotic the system has become. Ban it, and more sensible trading will give real value again to companies actually producing the results.
I doubt I can complain anywhere, as too many make money in the short term, however, the idiots don't realise the destruction they are doing in the long term.
The stock market, by my observation, is no longer a market, just a greed factory. Supply & Demand are manipulated, and worthy stocks don't get the support of a fair share value, because the idiots have fun playing for short term profits.
We no longer look to build and support progress by being shareholders of those ventures that actually look promising. Instead we are encouraged to trade the short term gains.
Terrific, and I understand that there is always a part to play in the market for short term gains on bigger companies that can handle the fluctuations. However, on the smaller capital end, it doesn't really make sense, to let computers to take control of trading idiot trades.
Additionally, I doubt some the of the big companies, we have today, would have got off the ground, if the proliferation of computer trading was available at the time they started out, and the bots were allowed then to kill off their real SP value for short term gains.
None would have survived, and I guess that is what we are doing now, killing off the future for short term greed, and not really seeing the future. Idiots!!
Apologies for the rant, but it isn't a market anymore, and oddly enough not even a fair go for many investors. It isn't just this stock, but quite a few I have observed.
Is there any way to fix the idiocy? I guess the other option is just bail. I wonder if we all do this if there will be a market left for the greedy idiots to play with. I doubt they will make that much money playing amongst each other.
Cheers
gsmaree
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