Eric,
Some very good questions you ask! Let me see if I can answer intelligently.
First, I've traded for over a year with CyBerTrader, and for two years with Fidelity. Still have both accounts. CyBer for pure daytrading, never holding overnight, and Fidelity for position trades and long term stuff. I never mix the two, treat them totally differently. Since I do not use the two accounts for the same type trading (generally speaking), I cannot really compare the two in that respect. Not a comprehensive evaluation, at least.
After a year with CyBerTrader, though, I am convinced that this type trading is definitely not for me. I don't like daytrading and have not been successful at it, to be honest. Therefore, I just don't believe in it, especially since I've had many good friends who have gone completely broke trying to do it. Too much work, too much stress, too much risk, too time intensive, and I've not seen anyone make profits consistently. We all have good days now and then, sure, but at the end of the year I believe most of us would have done better to just buy one good, quality stock and hold it all year.
With Fidelity, I am making position trades that will last 2-30 days usually. So, getting in and getting out fast are not my priorities with these type trades. I use market orders only with Fidelity because I want the trade done now, not at some point in the future maybe. Either I want in and I want in now, or I want out and I want out now. With Fidelity, it takes too long to cancel a limit order, get confirmation of the cancel, send a new order. So, I don't do that, don't use limit orders. I've usually had the stock for several days when I try to exit, made several points or more, I don't care about a sixteenth when I am trying to sell these, I just want out now and I want a confirmation now. With Fidelity, I usually get out and confirmed within just a few seconds for Nasdaq market orders, just a tad longer sometimes for NYSE market orders. Unlike with CyberTrader, though, I have never had a problem getting in or out of a stock, and I've never been disappointed or dissatisfied with my execution by Fidelity.
I use Fidelity's Fox Plus software for these trades because I trade multiple accounts and it is very easy to do with Fox Plus. The website is slow and cumbersome. I would never ever use it for trading. In a pinch, or when I'm bored, I even call in the trades by phone. Never a problem, never on hold for long. Good fills and quick, immediate confirmations and I go on my way. Never an accounting problem, never a technical problem. If there is a mistake, it's usually my fault, and I don't remember ever having a mistake with a Fidelity trade.
But I do not trade the super really fast moving stocks in the Fidelity account. I'm not sure how it would perform in that instance. And I don't care to find out. I buy stocks that I feel good about holding for a few days, then I go on about my business, studying more stocks, etc., but NOT watching every tick, not sweating every tick, NOT watching Level II or Time & Sales, etc. I buy them for a reason, and I let them do their thing.
One big point I'd like to make, though, is that, unlike CyBerTrader, I can connect to Fidelity (or phone them) anytime I like, 24 hours a day, seven days a week, to discuss my account. They are polite, courteous, and well informed. I can check on my accounts, positions, orders, place orders, including stop orders and GTC limit and market orders. In other words, I can work on my stuff with Fidelity any time I want, any time that is convenient for me, even when I'm traveling and just online with a notebook PC, I can trade with Fidelity anytime, from anywhere, with any computer, with any phone line. Nothing too technical to worry about....just me and the market. I like that.
I am convinced daytrading with direct order entry brokers is a very expensive and losing proposition. That's just my opinion, though, my own personal opinion. I am sure there are some who will disagree, and I respect their point of view. I just see where I've been successful and where I have failed. It's not difficult to see what works best for me.
Worrying about SOES, SelectNet, Island and other ECN's....that's all a bunch of b.s. to me, not trading, not investing....I don't need it.
I hope that somewhere in the above I did manage to answer your questions, Eric.
Good luck,
Bill |
