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Non-Tech : CYBERTRADER -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (1804)	1/30/1999 10:47:00 AM
From: William W. Dwyer, Jr.	Read Replies (2) \| Respond to of 3216

Wow, Eric I believe you have expressed my thoughts and feelings extremely well. I agree with everything you said concerning the execution systems. The point is, despite our fancy software and all the tools we think we have at our disposal, the MM's know what's going on at any point in time and they are in a much better position than we individual traders to take advantage of the knowledge. They still control the system pretty much. You're absolutely right about ECN's becoming more important, the way of the future. I am convinced that during the past 6-10 months SOES has become worthless when playing momentum stocks. Same for SNET. Only way to play them is by hitting ECN's and ISLD seems to be the one for that. On the other hand, SOES and SNET are cool tools for traders who are leisurely entering and exciting position trades, trades they've held for several hours or days, made a few points and are feeling like taking profits. No big rush. But, then, you could just as easily use a phone broker for this. Recent experience has given me something to think about. I have compared similar trading I've done in two different accounts I have, one a direct-access brokerage account (CyBerTrader), and the other a traditional brokerage account (Fidelity Investments). The results are, to say the least, interesting. Surprisingly, it was generally easier for me to make the trades with Fidelity using their proprietary Fox Plus software (not their exceedingly slow website). Executions, including Nasdaq and NYSE stocks, were often done quicker and easier and at good prices. I didn't have to concern myself with order routing, with things like the Five Minute Rule, SOES rules, or whatever. And, I didn't have problems, delays, and losses due to software problems, system outage, etc. Just made the trades. Plain and simple. I'm not saying that CyBerTrader is bad, just that recently I have had better success with the Fidelity trading account. Fidelity trading is probably not effective for trades where you're in and out in a minute or two. But, I don't seem to be having success in those trades with either system. Seems to me the answer is to think a bit more and do trades where you intend to hold for a longer period of time. The trade must have more merit than just "hey, looks like the stock is moving (or might move)," which I find going on in chat-rooms all day long. We need to re-define what we mean by "momentum" and have a little more substance in the trades. This is, as usual, just my own personal opinion. Bill