Re: ripped off at c.schwab

[TRaffertu@xxxxxxx]

From: james gainer <jgainer@xxxxxxxxxxxx>
Date: Thu, 04 Sep 1997 09:54:35 -0700
Subject: ripped off at c.schwab

>I have watched you group for some time and would value anybody's 
>opinion on the bandits at c.schwab they call brokers. On August 13,1997
>I  entered a market order for 20 contracts for a GE Sept70 call (Gein) 
>with a cash balance in my account of  $4,200.00. Not only did they spend 
>all of my account balance but went $440.00 over.        


 I'm sorry for your bad trade but I don't think you'll get much sympathy
here.

         I can' t immagine a Real Trader not checking his account ballance
before making any trade.  I know my ballance to within $100 but check anyway.
 With Schwab you just click the mouse or press a button on touch tone phone
(yes I use Schwab too, now I know how Ellen felt when she admitted she was
Lebanese).

         I can't immagine a Real Trader not knowing the commission costs
before approving the trade.  With Schwab the estimated comission is shown on
screen before the trade is submitted.

         I can't immagine a Real Trader not checking the order comfirmation
on screen or phone.  Market orders are confirmed very quickley, followed by
mail in a few days.

         I can't immagine a Real Trader not using a stop order after the buy
order to prevent an option going from 2.25 to 0.25.  Even a 50% stop would
have closed you out at 1.125.

         I can't immagine a Real Trader not using good money management.  If
you only had $4200 available you should have only purchased 5 contracts, not
20!  You bet the farm on red but crapped out, now you want to blame them for
a bad run of the cards (sorry for the very mixed metafore).

         I can't immagine a Real Trader assuming a trade did not go thru
simply because a previous one did not.  I check every trade, market or limit,
untill I'm shure.  If I cancell it I check that too.

         I can't immagine a Real Trader not learning from his mistake(s). We
all make (made) them.

          The only mistake I can see Schwab making was to allow you to trade
options before you where ready (you didn't lie on the disclosure form did
you?).    Schwab says  " If you consistently place an average of four or more
commissionable trades each month and maintain $50,000 or more in equity,
consider the advantages of Schwab 500 Brokerage".  Yet it seams you have made
all the mistakes of a rookie.

           I'm not saying these things to hurt or embarrass you, but you did
asked.  Instead learn  the rules, establish a proven stratagy, and get back
in the game.

                                                      Good luck and good
trading,
                                                                 Ray Raffurty