absolutely,thats why these dys I employ a momentum biased...

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11/01/20

11:55

Post #: 42331976
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Originally posted by Base1864: ↑

Brighterside,

The way I understand it is the bot buys the share for lets say $2.60, then sells it back again at $2.61.

Now to you and I, that represents a 1 cent profit. And as mugs, we have to pay $20 (or thereabouts) for the privilege. The ASX on the other hand lets their big boy buddies get away with not paying any brokerage so it is a pure 1 cent profit. The same ASX thieves claim that this is to create liquidity, but this is akin to Michael Jackson saying that allowing him to look after your kids creates stranger danger awareness.

Now you have to remember that the computers the ASX allows to have directly connected can actually outbid you by jumping the queue. So lets say you want to sell a share, for all intents and purposes it looks like you are first, but then all of a sudden trades go before you. The same happens when you want to buy. That is the primary purpose of the computer. It can actually see your order coming and trump it either way. This is known.

Back to the original thievery, therefore the bot can make very quick buy and sells each representing a single cent (in this instance, but it can be a fraction of one as well). But if you multiply that 1 cent by thousands of these trades in a day (just on the one stock), you suddenly end up with some albeit small but significant profits. Multiply that by the fact these things work across the entire ASX and across all the trading days of the year, you can suddenly smell the money these devious and dishonest things make.

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absolutely,

thats why these dys I employ a momentum biased approach to trading / investing. Always trying to work out here where funds are investing and when bots step aside or join the one way action.

Thats not easy to do and takes a lot of work but I find it works for me. thats why when I knock jamie i not against him just that traditional technical analusis is not what used to be because of algo and bot trading. Go on fundamentals as at least in the long run the good stocks will shine - NEA being one of them.

need to be patient these days and not be slow when opportunity knocks - no point looking for absolute lows and highs as waste of tirme -always has been. Oh and play foreign markets where much more liquidity and size

NEA Price at posting: $2.60 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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