getting played, page-4

Scmick,

Bots - short for 'robots' but usually refers to automated computer trading algorithms.

There are lots of reasons they use them:

Say you want to buy $1million in shares for a certain company, if you were to rock up with your million all in one go you would sure as hell alert everyone to what you were doing.

Or you want to keep the price of a particular company at a Certain level so you can continously buy more.

.... you create a computer program to buy small amounts over and over - sometimes the same amount - more often than not its slightly different amounts. You get to accumulate without alerting everyone else and without pushing up the price..

Those that use bots usually don't pay transaction fees for every sale/purchase like us punters - they would probably have some set deal from a broking firm whereby they can do it over and over without racking up a huge brokerage bill!!

Bots buying into a company are usually a good sign - ie usually a big player wanting in.

AtM