Quote from ranceramos:
Mobile trader failed as well. This was the day that QQQQ started selling off dramatically from the top (about 2 weeks ago) with no news. I was with the trend, I was long, and I had a 15% net profit. I only wanted to close and by the time I got through to the trading desk and sold out, I was down 10%. Yes, I use leverage. And yes I don't hold a position if there's a profit and I see a massive sell off in my face. Perhaps it was localized to webtrader, webtrader beta, mobile trader, and a 20 minute wait on the line before I got through to the trading desk. Maybe the desk trader was lying when he said they had a ton of calls coming in and couldn't answer my questions as to why the system failed. And maybe they didn't charge me $30 for the trade because IB felt generous. And maybe I misunderstood the webticket reply that said the problem was fixed (confirming that a problem DID exist).
Believe whatever you want. If you fit into the square peg of a long term trend trader with diversification and partner offset accounts at other brokerages, IB is perfect for you. But ask yourself this: I've heard people say that this users trading was reckless, but tell me now, knowing the significant number of posts here about IB's problems, wouldn't it be reckless to assume IB will never fail you?
Like I said, I was a huge IB fan (in fact, I brought over 3 others) up until the point that their failures started costing me money. It's hard enough to make money trading index options while maintaining a full time job so I don't need my broker creating any more obstacles to this effect.
First, let me clarify your misconception. I'm not a long term trend trader. I'm an active short term trader, and have been for close to 40 years. I started in this business as a broker with a major international firm, and since then traded part of the firms proprietary account for a while, traded on the floor, and traded off the floor for my own account for years. For the last 8 years or so I have primarily (not exclusively) used IB.
Now, again, TWS has not failed on me for a long time. I can't speak for WebTrader. I brought it up because I presume it's a more reliable venue since it's IBs primary venue. My guess is they've spent considerably more money in development on TWS than WebTrader. The day you had a problem, I had no problem. And neither did anyone else using TWS.
I posted because I have various contingency plans in place, which you did not seem to have. By the way, if you think IB is the only broker who ever has a problem, think again. They all have them. IB gets alot of publicity here because many of the traders trade through them....happily for the most part.
I also posted to tell you that I have had problems where I was stuck in a position when something went down, that worked for me...since you evidently assumed it always went against you. In fact, I used to joke with a friend that if I ever wanted to make some big money, what I needed to do was put a position on, and then unplug my computer for a day or two. My problem has almost always been getting out too soon, as opposed to getting out just in the nick of time before it went the other way on me.
Finally, I would comment that I don't use the type of leverage that would have created the swing you claim to have had. No one trade, even if I have a problem, is going to ever cause that kind of hit to me. Take it for what it's worth.
OldTrader
