Publius Maximus wrote: > Unless all transactions are voided during the period of the collapse, > my father is going to lose all his financial planning clients. > > He had stop losses set for all of the accounts. A representative > example: One of his clients had tens of thousands of dollars at > $61/share in one of a few ETFs he has been selling. > > He had set a stop loss of $59/share, thinking that would protect his > clients from major downside risk. > > Unfortunately the ETF dropped briefly to near zero and bounced back > up. So, the stop loss was triggered but all his client's shares sold > at $0.15/share. A 60K account became a couple hundred dollars in 20 > minutes. > > Somebody bought those shares at $0.15/share. And reaped the immediate > bounce back in price. > > If you don't believe me, look at this chart: > > <http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=RFG&sid=0&o_symb=RFG&x=0&y=0> > > You could type in almost any ETF symbol and the picture would be the > same. Try RWL or QQQ. QQQ only went down briefly to half its value. > > Notice the perfectly vertical line near the end, the horizontal line > at the very end, where it closed. > > That was just one of dozens of cases, where a stop loss became a total > loss in mere moments. It would have been better if he had no stop loss > on those accounts, but then these conservative middle class investors > would not have been comfortable taking positions in the market. > > Now THAT'S how you "spread the wealth around"! > They should know better. The stock market is a roulette, always been, always will be. And if you pretend to make money without working for it (which I find morally objectable), then you should know there is a risk involved. This time the risk became a reality. Tough.
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