Dan,
The reason I started using Fidelity was primarily so that I could have several different accounts all linked together for fast, easy trading. For example, my wife and I each have an IRA, I have another rollover IRA, we each have a separate margin account for trading options, etc. So, there are multiple accounts, but I can access and trade them all quickly and easily at the same time. I log on once, enter her password and my password in a box, and that's it....trading many accounts at the same time.
However, don't use Fidelity's website.....It is the slowest website I've ever seen. Use their software called Fox Plus. Fidelity is strange, though. They have a newer version called Fox Plus for Windows 95, and it's lots better than the original version, but they never seem to tell anyone about it.
The biggest problem with Fox software, though, is that it seems to log you off after a period of inactivity of maybe 15-30 minutes. No one there can tell me exactly long it is. The software allows you to specify a time setting. I've tried it, but it doesn't seem to work. But it's not a big deal. If I haven't used it in 20 minutes or so, I simply click log off, then log on, and I'm immediately back online. Takes about 30 seconds to get back. Not good enough for instantaneous SOES-style trading, but I haven't had much success lately doing that anyway.
But the fills are quick. Often Nasdaq executions and confirmations done in 2-4 seconds or so, NYSE sometimes takes 30-60 seconds or more. And, it's cumbersome to cancel and replace an order. So, doing those types of trades would be difficult with Fidelity. Again, I see it working best for people who are buying a stock and plan to keep it for a few hours or days, and great for people who need to trade multiple accounts at the same time. The commissions are cheap, the paperwork (confirmations, monthly statements, year-end tax info) excellent. And, good thing, it's easy to get to them on the phone, 24 hours a day, 7 days a week, very polite and courteous professional people. But, keep in mind, they are not really geared up for SOES-style traders, don't seem to understand why you want to be in and out of a stock in just a few minutes. I like it for position and swing trading, which I am coming to believe are easier to win on a consistent basis. And, for those type trades, having Level 2 and all that stuff just add more stress and convince you to get out of a trade before you really should. Info overload.
(Note about "instant executions": Even though Fidelity sometimes takes 5-10 seconds on Nasdaq or as long as maybe a minute to do NYSE stocks, this is not necessarily so bad. CyBer and Real Tick theoretically fills you in a second or two. Right? But, I have seen many occasions where it took me 5-10 different orders, cancels, re-orders to get into a stock and as much as a few minutes....same for getting out....and if the system is down or delayed or somehow screwed up for a while, well.....even more time. So, instant executions aren't always instant. Like a jet airplane that flies from NY to LA at 500 MPH, but you sit in the airport for two hours before it even takes off, then wait 30 minutes for your luggage on the other end. Don't even consider the line at the rental car counter. The "speed" can be a bit misleading. Sometimes. Total time is the real issue.)
Now, speaking of "info overload," this past week I had positions in AOL, DELL, MSFT and a few others that were moving. On Wed afternoon I sold them all because the market looked weak, CNBC gurus were negative, etc. But, what happened? Well, Thursday and Friday they all exploded to the upside. I only made about half the profit I should have made. Why? Watching too much stuff. Listening to too many different opinions. So, I think CNBC is best watched with the sound off....primarily useful to see the indices.
Speaking of indices...... for any trade lasting over an hour, I think they are worthless. For example, how many days does CNBC say the S&P futures are up above Fair Value, the market is going up......yet by the end of the day the DOW is down 90-150 points or so? And visa versa. Futures are down, by the end of the day Nasdaq rallies 60 points. Crazy.
I have started using the AIQ market timing model to determine when to go long or short or neither, buying a basket of high RS stocks and holding until a market change is signaled. Not watching CNBC, not monitoring all the noise in internet chatrooms, not surfing the web and tons of website with gurus and prognosticators who all seem to want my Visa card number to get more of their opinions, and, trying to limit myself to only reading half or so of the million messages posted daily on S.I.
Doing this, I find myself doing fewer trades, paying less in commissions, having less stress, and, more important, making consistent profits. Not 100% or anything like that. No. But who can reasonably expect to do that? Plenty of days last year I made 30%-40% on my daytrading account in one day. But, guess what? At the end of the year, my account was down. Tons of trades, tons of paperwork, hours and hours of work, but no profits. Nada. I would have done better to sit on an island somewhere and watch the tide roll in and out, sipping marguaritas and so forth, reading day old copies of IBD just for the fun of it.
Now, on the other hand, I do know of more than a few people who do seem to be winning the daytrading game. Go figure!
Bill |
