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"Perhaps we should collect all of the e-mails on this topic from this group
and forward them to Fidelity."
I think some of you may be missing a subtle, yet important message.
Haven't you noticed that over the past 4 weeks that many of the online
brokers have stopped advertising? I believe the on-line brokerage firms are
taking a long hard look at their ability to serve their customers. Along
with this, is their liability IF this market starts to dive in a rapid
fashion. Have any of you looked at the amount of stock on margin at
E-Trade, Ameritrade, etc? Have you seen how much internet stock and
internet brokers stock is margined?
I don't want to scare anyone, but I think Fidelity's actions speak for
themselves. If a drunk comes into a bar and you have to serve him.....why
not just keep raising the prices till he can't pay and goes somewhere else
to drink?
What does one do? Have multiple accounts that can off-set positions if some
of these e-trading firms have an outage. Scale back, use stops, use
puts....Were any of you in the S&P's when Greenspan lowered interest rates
on a Thurs afternoon before options expired last October? 50.00 points in
about a minute. Care to take a guess on what will happen if the Fed raises
rates? Think it won't happen? Take a look at the t-bill chart then take a
look at the DJII.
There is lot's of money to be made, but be careful. It is easy enough
losing money because you traded wrong....It's going to be real upsetting
losing 3 years worth of gains in 3 hours because you can't get out of a
position that has turned against you.
Tom Stein
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