With more AI bots trading, it's only going to get worse....

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n8th8n

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25/07/23

11:05

Post #: 68964368
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Originally posted by whirlswirl: ↑

The nature of this company being:
1. small
2. having a strong development team hitting milestones, and
3. typically low trading volumes
--> makes it a prime target for short-term traders.

They can depress the stock easily due to the low volumes by selling a relatively small number of shares onto the market, knowing there is usually insufficient volume for there to be an equally sized short-term equalisation back north to previous levels for any extended period of time. That allows them to accumulate in packets at a lower price, knowing that a strong development & management team exist at the company. Knowing this, they can bet on a high likelihood of positive announcements in the future, which upon those announcements, a small increase in volume can lead to large spikes in the SP, at which point, they can unload the shares they accumulated at the depressed levels. People made an easy ~45% today, knowing that they can do the same again and again until MX1's projects reach completion and begin generating substantial revenue.

From the announcement, we can see that the TSA is putting money up for 3 years. There's a long way to go, and most people investing in managed funds with small-cap portfolios want to see a solid return each year, thus these managers need to flip in and out of their positions to keep their jobs and make a nice commission. My hunch is that holding on will be well worth it here, but until we get $$$ consistently flowing in we're at the whim of short-term traders with dollars to throw around, it's a shame but in the grand scheme of things I'm not too bothered - as long as we bring in enough to keep the train moving forward without substantial dilution of my position, I'll be holding on to see how these products disrupt their respective industries.

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With more AI bots trading, it's only going to get worse.

Unfortunately ASIC is under resourced to deal with these matters. I hope in the future with big data technologies, they are able to retrospectively analyse trades to detect market manipulation and prosecute.

Thats dreaming though, and doesn't stop them messing things up right now.

MX1 Price at posting: 11.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 8.0¢		Change -0.001(0.62%)		Mkt cap ! $46.52M

Open	High	Low	Value	Volume
8.2¢	8.2¢	8.0¢	$2.344K	28.96K

Buyers (Bids)

No.	Vol.	Price($)
2	27021	8.0¢

Sellers (Offers)

Price($)	Vol.	No.
8.2¢	80996	1

View Market Depth

No.	Vol.	Price($)
2	27021	0.080
1	12658	0.079
1	45000	0.078
1	6493	0.077
1	50000	0.076

Price($)	Vol.	No.
0.082	80996	1
0.083	218469	2
0.087	25000	1
0.088	77508	2
0.094	20501	1

Last trade - 15.47pm 04/07/2024 (20 minute delay)

MX1 (ASX) Chart

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With more AI bots trading, it's only going to get worse....

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