Can I sue a broker for doing this?

I guess you can not sue them because they can liquidate the shares for many reasons. One of them is that you get a margin call. The other one is that the shares get called. If even one share was traded high enough to make your account margin requirement negative, they can liquidate some shares. In your case that they liquidated lots of shares. In my IB account, if the liquidate me , they do it at 15:50 if my SMA is negative or right away if my account goes negative but they do it to the amount that make me safe. I have accounts with many brokers. TD, Ameritrade, Scottrade, Fidelity. They all send you a polite letter about your margin situation and that was more dangerous because the problem might escalate. I believe if it is your habit to squeeze your account , change your broker with one of the ones that I mentioned.

 

No, I am referring specifically to you. After this post you come across as being beyond stupid.

 

Perhaps you could have had this part in bold or a larger font size?

 

Thank you.Good point but you know what - Imo, I don't really think it would have made that much of a difference.

 

I love you too, and I wish you a happy holidays!!

Love,
Sarah.

 

If my shares were not liquidated, I would have been up by at least $20,000 in about ten minutes. When somebody starts liquidating 5,000 share increments in a one minute time span at market, it is sending a signal that somebody is desperately trying to cover his/her shorts. After this initial surge, the stock dipped back below the previous day's closing price and in about 2 hours was down by 7% and ended the day 10.5% lower.

 

Sorry Sara. I don't reciprocate your love. But happy holidays nevertheless.

 

lol... yes, and it's apparently getting you into serious trouble.

A good risk management rule is to risk no more than 2% of your account on one trade. So if you were trading a $6 stock and your account size is $25,000, and you short at $6 with a stop loss of $6.50, then you are risking $0.50 per share. If you short 1000 shares and get stopped out, you have lost $500, which is 2% of your account size.

We can contrast this with your approach, which was to risk more than 100% of your account on the trade.

Hope this helps. Once again, there is a lot of good material here on ET for beginners. When you get another trading stake together, you can try again using some risk management rules and hopefully have better success.

 

Hello, Mr !Q has had another brainwave and jumped to the conclusion that my acccount was wiped out. I'm sorry to disappoint you. Not true.

 

Looks like you spend most of your time here wiping people's asses so go ahead wipe mine.