Why Is There A Sell Limit??

[moi几够力一下]

I understand a buy limit because they are not sure if you have enough fund to buy. But why they limit you to sell the stock that you already have? Why can't I sell all my stock all at once if i choose to?

 

[Shiny Things]

I understand a buy limit because they are not sure if you have enough fund to buy. But why they limit you to sell the stock that you already have? Why can't I sell all my stock all at once if i choose to?

It's because CDP is dopey.

The brokers can't see into CDP, so they don't know how much you hold of any particular share - and if they don't know how much you own, they don't know how much you can safely sell. Without a limit in place, you could sell eleventy-three zillion shares of DBS or whatever and they wouldn't be able to prove that you didn't own them.

That said - if you're panicking and selling all your shares because the market has gone down, STOP.

The market goes down sometimes. Sometimes it goes down slowly; sometimes it goes down quickly. But you shouldn't care. If you're investing in the market, it should be with money you need for the long term: money that you don't need for five or ten or more years. And if that's what you're doing, then this is just a blip - in five years' time we'll look back and say "oh that thing? man that was rough, but look how far we've come".

Since the Flash Crash in 2010, the SPX has gained about 60%. In the five years after the 1987 crash, the market gained about 60% as well.

Down here, you can buy the same great stocks 10% cheaper than a week ago. Is DBS 10% less valuable than it was a week ago? What about the Jardines? What about Apple? (OK, maybe I'll give you Apple, given that they reported such weak earnings out of China.) What about JP Morgan, or Kroger supermarkets (which briefly traded down 25% this morning)?

 

[moi几够力一下]

It's because CDP is dopey.

The brokers can't see into CDP, so they don't know how much you hold of any particular share - and if they don't know how much you own, they don't know how much you can safely sell. Without a limit in place, you could sell eleventy-three zillion shares of DBS or whatever and they wouldn't be able to prove that you didn't own them.

That said - if you're panicking and selling all your shares because the market has gone down, STOP.

The market goes down sometimes. Sometimes it goes down slowly; sometimes it goes down quickly. But you shouldn't care. If you're investing in the market, it should be with money you need for the long term: money that you don't need for five or ten or more years. And if that's what you're doing, then this is just a blip - in five years' time we'll look back and say "oh that thing? man that was rough, but look how far we've come".

Since the Flash Crash in 2010, the SPX has gained about 60%. In the five years after the 1987 crash, the market gained about 60% as well.

Down here, you can buy the same great stocks 10% cheaper than a week ago. Is DBS 10% less valuable than it was a week ago? What about the Jardines? What about Apple? (OK, maybe I'll give you Apple, given that they reported such weak earnings out of China.) What about JP Morgan, or Kroger supermarkets (which briefly traded down 25% this morning)?

Ok I see. Anyway I call the broker to increase the limit just to make things more flexible. I was thinking of selling off even before the crash. So the crash is kind of getting in the way.

Another question. Is now a right time to buy US assets and stocks given the crash here and the SGD weakening? Or wait a bit?

 

[Shiny Things]

Ok I see. Anyway I call the broker to increase the limit just to make things more flexible. I was thinking of selling off even before the crash. So the crash is kind of getting in the way.

Didn't you only just start investing, though? Why are you thinking of selling so quickly? Or have I got that wrong?

Another question. Is now a right time to buy US assets and stocks given the crash here and the SGD weakening? Or wait a bit?

It's the right time to buy pretty much any asset, because every market around the world (except gold) has just had a huge synchronised swoon.

Generally I reckon you want to have some overseas exposure anyway, so it's not a bad idea to own some overseas assets (this is why I recommend IWDA). That all said, the time to get BOLIVIAN long of overseas assets was when USDSGD was at 1.25, not now when it's at 1.40.

 

[moi几够力一下]

Didn't you only just start investing, though? Why are you thinking of selling so quickly? Or have I got that wrong?

Because I was already getting ready to sell from 2 months ago. Then the sudden deep crash which makes me feel I should do it even more urgently while at the same time wondering if I should wait for it to recover. Now I am not sure what to do.

It's the right time to buy pretty much any asset, because every market around the world (except gold) has just had a huge synchronised swoon.

Generally I reckon you want to have some overseas exposure anyway, so it's not a bad idea to own some overseas assets (this is why I recommend IWDA). That all said, the time to get BOLIVIAN long of overseas assets was when USDSGD was at 1.25, not now when it's at 1.40.

I was going to sell to convert to US assets. But now I face the double whammy disadvantage of discounted sinkie assets converting into increased US assets. Again at a lost if I should just go ahead or wait.