First QQQQ Purchase Made with QQQDirect

I opend a QQQDirect account about two weeks ago and set up an automatic investment plan (the plan that offers one free QQQQ purchase every month) with $50 monthly purchase of QQQQ. When I checked my account last Friday, there was still no record of any investment yet, though the date I chose is the first Thursday (with QQQDirect plan, purchases can only be made on Thursdays) of the month, which was December 7th. 

Last night, I got a trade confirmation letter from MyStockfund, the owner of QQQDirect. It shows that indeed 1.1337 shares of QQQQ were purchased on December 7th and there was no any other fees associated with the investment as advertised. However, what I found after logging into my account was a little surprise. 

I only scheduled one purchase every month and $50 were drafted from my bank account on the 6th for the above transaction. But, my online account indicates there are $50 cash available while the account histroy shows no such transaction. My bank account also has no record of the second cash withdraw. I don't know if this is just a display error or anything like that, but it needs to be clarified with QQQDirect. Except that, everything seems to be OK. Whether now is a good time to buy QQQQ (NASDAQ at five-year high) is another story. Since I use dollar-cost-averaging buy purchase a small amount every month instead of a big one-time lump sum, the current price level doesn't really bother me too much.

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4 Responses to “First QQQQ Purchase Made with QQQDirect”

  1. moneymonk |  Dec 12, 2006 at 11:32 am

    very smart by using dollar-cost-averaging to purchase a small amount every month. You will not lose loads of money that way.

    Your risk will not be high.

  2. The Sun |  Dec 12, 2006 at 11:36 am

    Yes, dollar-cost-averaging reduces the risk significantly and I don’t have to worry about the market ups and downs. However, it only works with a plan that doesn’t charge commissions.

  3. Jonathan |  Dec 14, 2006 at 2:58 am

    I always considered QQQQ to be a weird ETF. I mean, is there a NYSE ETF? It’s kind of a tech fund, but not really.

    I’d be interested to know if you bought this more because of QQQQDirect’s existence making it so simple, or because you really wanted to own cubes?

  4. The Sun |  Dec 14, 2006 at 9:27 am

    Yes, one of the reasons I decided to buy QQQQ is indeed that QQQDirect’s commission free structure makes buying a small amount every time (dollar-cost-averaging) affordable. Though I might have bought my first share at the peak of NASDAQ in five years, I don’t worry to much about the price fluctuations. Besides, I believe in technologies.

    Actually, QQQQ is the ETF that tracks NASDAQ 100 index, the same as IVV that tracks S&P 500 index. As a matter of fact, you do have a NYSE ETF and that’s NY from iShares which tracks NYSE U.S. 100 Index.