loss on forced selling by broker

my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

That's an example of a typical broker who predicts wrong things correctly. In your case, he thought SFIN won't go up at all.

I think it just start increasing

Oh dear vry sorry. Your first post is a sad one.

Some brokers sell ur shares with big loss,But some people try to minimize ur loss.
In this case Ur broker sold SFIN bcoz he wants to minimize his loss & ur also.
(jst my opinion.My broker has this kind of strategy)

Dear mcqueen,
Broker's help is needed for investors. That's true. But all of them are not professional and some don't have even qualifications. They don't care If the investor get a loss or a profit as their brokerage is received from all of trades. In many times, they say things without having even a normal knowledge of the share as well as my broker. The best thing is doing your own thing. Analyze any of share before purchasing. You can get the help from this forum. Kind experts will help you definitely. Don't forget to receive your broker's idea. But don't follow him If you feel that it is not good. If you have a free time, learn how analyze financial statements. No need very pro knowledge. Only need a normal knowledge. I like you to change your adviser. I don't like stay with such people. Please could you tell me your broker firm. Then I can suggest some more helpful things.
"Just try new stocks with purchasing only 100 shares. Sometimes you will unhappy If the price move up. But you will not unhappy much If the price moved down. Happy trading! Keep In touch with us! Still you haven't defeated! You have more chances!

LANKA SECURITIES IS ALSO SELLING BY FORCE ,I ALSO MADE A LOSS BECAUSE MY SFIN SHARES WAS SOLD BEFORE FEW DAYS AGO

If the broker new that SFIN was on its way up, then he or his friends would be the buyers of this force selling!!!

For investments oriented stocks there is no issue of force selling. .....Only for the credit inflated stocks force selling comes in to operation...... Investors are reluctant to put funds in to such risky stocks.

Thanks for all the replies.It's A P.I have stocks baught last year.I m keeping them till price up.But unfortunatly see what my broker did.

Its a big joke, is'nt it? First they cried that SEC has a T+5 rule. Made a big fuzz about is and cried all those crocodile tears... Now SEC has given the freedom, and they do forced-selling even more than before...

Also with the Brokers playing fool in the market situation is worse now. In the past we KNEW forced selling was in T+5. Not any more. All of the sudden my broker calls me and says "Guess what...Its now 10AM, if not sold by 1PM, they will have to force sell!!!!"

Its just like the private bus mafia... The Broker firms have all the investors on strings.

We should request SEC to
- have a T+SOMETHING rule established and adhered to ( rather than ad-hoc rules and decisions of the many Broker firms)
- give online trading investors the option not to pay broker fees ( why just give the fellows our hard earned cash for doing nothing??? - This seems the only place on planet Earth with a free lunch!!! - Be a broker)
- since brokers are so fuzzy about credit, what about our excess cash with them? They should give us an interest on these cash on a daily basis. They do charge US, dot they??

thighrokker wrote:Its a big joke, is'nt it? First they cried that SEC has a T+5 rule. Made a big fuzz about is and cried all those crocodile tears... Now SEC has given the freedom, and they do forced-selling even more than before...

Also with the Brokers playing fool in the market situation is worse now. In the past we KNEW forced selling was in T+5. Not any more. All of the sudden my broker calls me and says "Guess what...Its now 10AM, if not sold by 1PM, they will have to force sell!!!!"

Its just like the private bus mafia... The Broker firms have all the investors on strings.

We should request SEC to
- have a T+SOMETHING rule established and adhered to ( rather than ad-hoc rules and decisions of the many Broker firms)


- give online trading investors the option not to pay broker fees ( why just give the fellows our hard earned cash for doing nothing??? - This seems the only place on planet Earth with a free lunch!!! - Be a broker)
- since brokers are so fuzzy about credit, what about our excess cash with them? They should give us an interest on these cash on a daily basis. They do charge US, dot they??

Who is your Broker?

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Aamiable wrote:For investments oriented stocks there is no issue of force selling. .....Only for the credit inflated stocks force selling comes in to operation...... Investors are reluctant to put funds in to such risky stocks.

What the heck are you trying to say here? What makes this different when it comes to forced selling, whoever who is doing forced selling is expected to select the stock having least unrealized loss if there are no stocks making profits in the PF!

Yes broker has the option of force selling if the dues are not settled within the stipulated time period. You can not do much about it unless he has done it before the stipulated period for force selling.

StocksWatch wrote:

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

I agree too. Everyone has to learn to live within their mean. But unfortunately greed takes over and then come the down fall and it gives rise to the blame game. Earlier everyone was blaming the SEC now they are blaming the brokers what a joke.

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

Antonym

you are correctly said.

we have to live with our means and power word for traders should be "enough"

I haven't been in this situation but for me the right thing to do is to sell the shares bought for credit. ie - after your cash has been used to buy, what is bought after that.

If it was me, I wouldn't want the broker to sell some of my long term shares even though they show some profit in the pf. of course there can be exceptions and this is my view.

dear mcqueen,
It is better to change your broker.(It is asha phillips Isn't it?) Difficult to find good advisers at asha phillips and you can't select an adviser by yourself because you don't know who is good. You can choose captial trust. More better if you can use the online trading system as you can do trades independently.

StocksWatch wrote:

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80


** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari

thighrokker wrote:

StocksWatch wrote:

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80


** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari

let me disagree partly.

one should know not only the repayment terms but should also know his repayment ability. If you think something is going to go up tomorrow or 3 days then buy on credit. If you think it will go up in quarters to come, simply get a margin trading account for which you will get a less interest and explicit repayment terms.

coming back to the point, I do not think the person who posted the question has any arrangement or communication with the broker. In such a case, how can he/she know the terms even. Not all brokers allow credit for a long time. They are well within their right to sell if not paid for.

Businesses run on credit. I agree. They take out loans, from banks.
For trade credit, it is not an indefinite period. you ought to pay within a stipulated time. If you keep delaying that you tend to lose the business with the suppliers

thighrokker wrote:

StocksWatch wrote:

Antonym wrote:

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80


** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari

I can not see significant disagreement here.No one here says do not get credit or do not settle the credit on due date.

mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

sorry friend... brokers don't care about you or your money. They cover their your outstanding credits by easiest way. They don't want to find what price you bought, only check the amount they want to cover and sell easily at once. That may be bulk of same share or different shares...

This is my personal thinking,
If you have outstanding credits and You seriously want to hold,
Then ask from broker and clear the credits by selling another or
sell one and buy again at that price or lower price. Then Your lost is only broker charge and you can hold it for some days...

But Rules changed now, best option is change your broker and go for a one who gives best facilities for their customers...

Anyway broker firms have to send reports at the end of the month. ......Monday and Tuesday can be uncertain. ....Thursday onwards market could perform well.