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Tom Stein's remarks are dead-on. Heed this warning.
Tom Stein wrote:
> "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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