I looked through my 2007 posts and realized that I posted about it before. It’s found here:
1. The sky is falling
2. SPECIAL DAY – TAKE NOTE
3. DAMN U DBS
4. Finally logged on to DBS
Back then, I only had one brokerage platform which is under DBS Vickers online. It had failed miserably on me back then when I was trading warrants. In the midst of the trading, the whole platform went offline and I couldn't sell it. From a winning trade to a losing trade because of platform issues isn't funny. What’s worse is that warrants trading for HSI closes earlier, so it's nearing the closing time and I didn't want to hold on to a volatile warrant overnight.
Needless to say, it’s an incredible stressful time for me. I swear never again! That’s why I got another few backups as my brokerage platform. In fact, now I had several backups, even though I use mainly just one for my transactions. In the past, I used to log in all the time to trade. I seldom do that now, but I think it's still good to know that if I need to buy/sell, I had the options to go to different brokerage account to do it, just in case it fails on me again.
Again, the idea of redundancy applies. If you have a margin of safety on your stock purchases, do you also have a margin of safety for your transaction platform? Being prepared also means getting all your resources ready, for that moment when you need them the most, during the moments when you need them the least.
I think my thinking back then of having multiple brokerage platform, still applies to the context now, and possibly in the future.