Its 4pm..do you know where your broker is?

[limitdown]

Quote from peilthetraveler:

I gotta say, there was more than a few people that bought BSC in the 30s on friday ON MARGIN and all in. Accounts were blown and they have negative balances now. A guy with a 25k account that bought Bear, got margin called today and owes his broker most likely between 20 to 22k today. To show you how serious this is lets say a big retail broker like scottrade had just 1,000 people that blew out like this. (i know the number is probably must higher, but im using a low number just to show you how bad it is.) So say 1,000 people (out of the millions of customers/traders they have) blew out like that. Thats a 20 to 22 million dollar hit scottrade will have to take. If the number is 10,000, thats a 200+ million dollar hit in 1 day.

Remember that 133 million shares were owned on friday at 30 bucks per share. That almost a 4 billion dollar hit. Sure some people were not all in and some didnt have margin, but I guarantee, there are brokers out there that are taking some serious hits and when everything clears (t+3) brokers are going to flip.

As soon as this becomes news (and you know it will cause you cant hide 200 million dollar hits) i think some people are going to be pulling money out of their trading accounts.


Let the panic begin.

I won't question your facts or your sources, because it takes a whole lot of hubris to bring statements like these to these highly critical boards...so in short there must be a tremendous amount of truth to these statements....

Not being hedged with put options, not being hedged with a highly volitile stock, not even haven prepared to be hedged may be at fault with those persons (collectively) having taken that speculative long position in BSC.

There was one shareholder who publically was on CNBC expressing his disgust with the events over the weekend and vowing angst as well as shopping for a class action to either start, chair or join against the activities of the BSC sellout.

what a heated issue....its not over

 

[5yrtrader]

Quote from peilthetraveler:

Why dont you research my thread on how terrorists were going to attack the U.S. like i predicted in october 2001.


That should keep you busy.

October 2001 huh, kind of missed the boat on that one.


Why do you think a lot of people trade on margin, or risk more than their net worth on one trade? I know a lot of traders and I don't no anyone who has the possibility to lose everything on one trade.

5yr

 

[jjk2]

Quote from peilthetraveler:

I gotta say, there was more than a few people that bought BSC in the 30s on friday ON MARGIN and all in. Accounts were blown and they have negative balances now. A guy with a 25k account that bought Bear, got margin called today and owes his broker most likely between 20 to 22k today. To show you how serious this is lets say a big retail broker like scottrade had just 1,000 people that blew out like this. (i know the number is probably must higher, but im using a low number just to show you how bad it is.) So say 1,000 people (out of the millions of customers/traders they have) blew out like that. Thats a 20 to 22 million dollar hit scottrade will have to take. If the number is 10,000, thats a 200+ million dollar hit in 1 day.

Remember that 133 million shares were owned on friday at 30 bucks per share. That almost a 4 billion dollar hit. Sure some people were not all in and some didnt have margin, but I guarantee, there are brokers out there that are taking some serious hits and when everything clears (t+3) brokers are going to flip.

As soon as this becomes news (and you know it will cause you cant hide 200 million dollar hits) i think some people are going to be pulling money out of their trading accounts.


Let the panic begin.

this sounds awfully familiar.

oh dats right a period of economic downturn and a massive war saves america.

 

[ggoyal]

If someone with a 25k account levered 2:1 and put their money "all-in" in BSC hoping to make a quick a buck got what they deserved. It's stupid. What did they think? they are going to double their money?

If however they levered up 4:1 to scalp it, that is fine because the timeframe is so small. But I think we all have seen drops quicker than we can click the appropriate buttons and get out at market price. I go all in at times, but I don't use leverege.