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> <<Fidelity has restrictions on how often you can switch without penalties
> (monthly) so I tried to live within that restriction.>>
There's a short term trading backload of .75% for positions held less than 30
days. I therefore agree that - for the most part - it's best to develop systems
with holding periods which average more than 30 days. No matter what you do
though - you'll wind up holding certain positions for less than 30 days.
OTOH - you can get 5% (or more) intraday swings within these funds. So an
astute short term trader (and I'm not in that category <g.>) might be able to
do well with a shorter term system. FWIW - the intraday pricing available on
the Fidelity Web site is excellent.
> <<...switching between stocks, possible the Dow30, since the transaction
> costs of switching is becoming very low and there are no restrictions on
> switching...>>
You're dealing with a totally different animal there. I've called the Select
Funds "stocks with trading wheels" in articles about them. They're good for
conservative people like me who can deal with intraday trading ranges on the
usual order of 1-3% (occasionally as high 8-10%) - but not gap opens of 20% or
more. Plus - since sectors tend to trend more than individual stocks - it's
easier to do TA on them - just like it's easier to do TA on broad based indices
as opposed to sectors or stocks. Robyn
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