Accidentally Sell Shares I Don’t Own

Accidentally Sell Shares I Don’t Own , To be exact is the trading  System accidentally execute my Sell Limit Order before Buy Limit Order.

The Stories

At One Fine Day ,  I saw an opportunity on Stock XYZ , that i would  probably earn a small profit speculating .

I did some home work , digging through daily Charts of Stock XYZ via google finance . I got the resistance level . Using the Resistance Level  and  average daily fluctuating range of  Stock  XYZ .

I determined  the Value for Buy Limit Order and Sell Limit Order .

Being confident on my Findings , I proceed setting my Buy Limit Order and Sell Limit Order concurrently . (ノ_・)/ My stupidity will cost me to pay the price later.

Process of Setting Buy Limit Order/ Sell Limit Order that i set for Stock XYZ

I am Using the  Trading Platform from Poems

Prior Setting my Buying and Selling Limit Order , I  login to my Poems Account , navigate to the Calculator , populate the Buying and Selling data to calculate Profit and Loss.

 

After being determined on by Genius Plan  ( Stupidity actually )  . I Proceed Set My Buy Limit Order and Sell Limit Order concurrently

 

I set as Below

Buy Limit Order : 0.605

Sell Limit Order : 0.61

My Master Plan is earn a bit than Take Profit , I set the above Buy and sell Limit order concurrently before market open

 

Now What

🔔🔔🔔🔔🔔Ding Ding Ding Ding  !!!. Market Open  , Stock XYZ price  open at  0.61 . Based on my genius Plan  ,I expected it to go down to 0.605. Guess what , It never go down , instead the Stock rose up to 62 cents  and execute the Sell Limit Order.

So What wrongs of the Sell Limit Order  execute before the Buy Limit Order?

The Problem is i do not own the Stocks that i Sold , is consider a naked Short

My initial plan is to buy first sell later.

What Next

Actually on that Specific trading day , i didn’t know the Sell Limit Order is executed before the Buy Limit Order.  Normally  I will set all my limit order  one day prior market opening , leave it there, and check P/L next Morning , as i have no time to monitor during my working hour

Surprise

Next Morning when i wake up , i saw  an  negative “-20,000 ” Outstanding  share at my Poems Outstanding Position tab.

 

Then How

It was 730 AM , in the Morning , I  called  my broker , and told her my Situation. She then suggest me to borrow  share from SBL to close the Position.

 

How To Mitigate the Situation

My Broker Carmen , guide me through the whole Process  . I am very grateful for what she has done for me .

🙏

Step 1

(i) Navigate to your  Account Management in Poems

(ii)Click the SBL Tab

Step 2

(i) Find your Symbol

(ii) Navigate to ” Request To Borrow Shares”

(iii) Input exactly the same Number of Shares that you have accidentally sold

Step 3

Click confirm and wait for your broker to notify you  when the  borrowing is approved

 

Finally i managed to borrow  20000 Shares at the price of  0.605 . Heng ah ( Singlish )

 

 

 

Position Close Next Day

(1) As Instructed By my Broker i deposited S$50 into the Margin Account

(2) After Deduct all Fees and Penalty  i have a Positive Closing Balance of S$35.88

(3) Which means if i have not deposited S$50 , my closing balance will be  S$35.88 – S$50 =  $-14.12 ( After Deduct all Penalty and Administration fees)

Heng Ah ( singlish )  my Final Total Loss is S$14.12

Special thanks to my Broker Carmen

Lesson Learn from  Accidentally Sell Shares I Don’t Own 🙂

(1)  Make Sure your Buy Limit Order executed ,before you set the Sell Limit Order

(2) Speculate is Dangerous, it can go the other side

 

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