There is a problem if you lost money in a year where you could have literally bought any company, held the stock and made a profit. We could have placed the names of major publicly traded companies in a hat, picked out 10 names and then invested in each equally at the start of 2006. We probably could have turned a decent return even with that strategy. Thats how good last year was... Im not perfect or superior to anyone here. However, if you could not turn a buck in 2006 then something is wrong. Now we are entering into a more challenging year. Will the market correct or not correct? Will some sectors correct and other sectors run? Will the fed raise, lower or keep things the same? Is oil going to 20, 30, 40, 50 ,60, 70, 80 , 90 or 100? Is the ten year yield going up or down? Is gold going up or down? The answers to these questions are not so obvious this year. Everyone seems to have a different answer. If you could not make money last year, then whats going to happen this year. You have to re-evaluate.
Yes, this is exactly what is going on. You have to know how these guys run a portfolio... Basically what they do is tweek the model buy taking a stock from say 1.5% to 2% or from 3 down to 1.5 which is why you see trades of 20 or 30 shares. You will normally have anywhere from 30 to 60 securities in the model. If you're account is 100K (the average) then you can see why you're seeing confirms for such tiny trades... also anytime you withdrawal money or make a deposit you'll see very small across the board trades in order to bring the account back in line with the model. This is great for brokers because if you have shity performance they they can just blame the manager, fire them and move your assets to another manager.. "it wasn't my fault"
Not that you'll take it, but the best advice you could possibly get would be to leave your money where it is until retirement decades henceforth and retire a multi-millionaire regardless of what you've done with your life. *** If you wanna trade money, you have to earn the right to do so by trading and trading well, increasing your trading size as you increase your capital base by being a good trader. I wish you luck, but being well-off in this case is acting more as a detriment than as a positive. JJ
I agree but it's taking for EVER! . Making a consistant 250.00 a week is still a problem. I consider a monthly profit of 500.00 a VERY good month, lol. I could increase size and just throw every dime into as many shares as possible, but I know thats poor MM (money management ). I'm seriously considering buying like 600 shares of Ford (f) when it comes down to support, because its real cheap. These 80 - 100 share positions are killin me, when I know I got this 200k sitting just a phone call away. Honestly, I've got to be one of the most under-capitalized traders here on ET. CM69
How old are you? What is your time horizon? What is your tolerance for risk? Most importantly, what are your goals that take money, and planning to achieve? Yes, you probably are in an Advisory account (fee based. Being smith barney it's probably 50bps per quarter) Smith barney isn't going to hang their a** in the wind taking a ton of aggressive growth investors in, so you're probably in an 80/20 account as a growth investor. Or, more likely a 60/40 account. You're up 10.5% for the year, net of fees.
* I'm 21 * time horizon?... As long as possible. If you want to know how long I've had the account, it was sinse birth. * Risk tolerance - not sure, as long as its not in bonds, I'm happy
I will have this one framed. With statements like that we may very well read about you in "Market Wizards" in no time....
Lol! Ok, you're not in bonds. That's a good strategy for the interim. However, I have two family members who are smith barney advisors, who have done 16 percent net of fees for their growth investors last year via the advisory platform they're in. It's an 80/20 account, AND has bonds in the portfolio. Convertible bonds. At 21, you are a growth investor, I'm sure. No one wants to take aggressive growth clients, and neither do I. Here's what I suggest: * set up a meeting with your advisor. You may want to re-allocate your assets based on your risk profile. * don't blast him/her for the performance, as you'll probably get fired as a client for that. A 10.5 percent return isn't anything to complain about. Yes, I know the s&p did 16 percent. * find out what the advisory platform is, and the fees. I'm guessing 50bps billed quarterly being a wirehouse. * do not take this money out of the account and start trading contracts and options, as it's your nestegg. If you've not crashed and burned at least a couple hundred grand in the past, your nestegg has no business in the hands of an amateur. I know that's harsh sounding, but you'll thank me when you're sixty years-old. As for performance, and since the account falls into two categories I see from your post, I can think of two platforms that I would put advisory clients in: 1. Hedged- buying equities before the ex-date, buying in the money puts, and writing covered calls for income. Very low risk, and my CFA portfolio managers did 11.6 to mid teens depending on the asset allocation, and the investor's risk profile for my clients. 2. Growth- long and short positions, heavy on technical analysis. Did high teens last year with moderate risk. If you are an accredited investor, you have a host of options such as private placements in private reits, oil and gas, etc., a million dollar account is absolutely amazing with this type of portfolio modeling! As for smith barney, the advisors there can't even go to lunch with wholesalers outside of the office. Their e-mails get read, and even worse, it's a hard core sales environment, where production is the push. Many veteran advisors there have 2,000+ clients, and are asset gatherers, period. I started as a Merrill broker, so I know all too well the sales, and production crap. The wirehouse advisor is typically on a 42 percent payout. Therefore, there's more in it for the wirehouse/bank than the advisor. I'm an independent Wealth Manager, and paid twice the wirehouse payout. Therefore, I need less clients, and provide A LOT of service as a result of that. I handle 91 advisory clients at any one time, and no more. Soooo, with 2,000 clients, do you think a wirehouse/bank broker will be able to stay on top of every client's needs? No, and hell no! I'm not bashing smith barney. Just pointing out the obvious, as I know the mentality. They're a solid firm, and do the same stuff every other wirehouse does: gather assets under heavy sales pressure, and provide advisory and brokerage accounts with results that are...ok. My questions to you are: Do you really want a salesperson handling your money? Do you want an asset gatherer as your advisor? Did your advisor ask you "what's important about money... to you?" Did he ask what your tangible goals are that take money and planning to achieve? Did he create a step-by-step plan of action for you telling you exactly what to do to achieve your goals for the reasons that are important to YOU? is he a financial coach to you keeping you abreast of the account regularly? If not, you have a salesperson handling your nestegg. An asset gatherer... What you do then is your call. I can say that I originally wanted all the money in the World as a rookie broker. Then I learned that once a lot of money is made, it's not as important to me as being able to make a positive difference in the lives of others. For example, meeting with young couples who have NO $, and giving them prudent advice without a fee. Mother Merrill, nor any wirehouse-will do that, as it's all about sales, production, etc., I feel like a multi-millionaire after having that kind of impact on others! This is a great board, with great experience. I applaud the members here for taking control of their financial futures, as they're a rarity in 2007! You would be blown away to see what's out there these days. People living check-to check buying depreciating, materialistic crap while investing ZERO $ in their futures. That's right, no 401(k) contributions, no IRA contributions, no investments. Just a hope that someone will hand them the $ they'll need when it's time to retire... They'll really suffer, it's sad. To make matters worse, the financial "services" industry-the banks and wirehouses the biggest offenders-won't even give these people the advice they need in order for them to have the $ they'll need in retirement. That's a travesty, and it's compounded by the "what's in it for me" mentality. If anyone reads this post, and takes action to create their own financial freedom, I've made a difference. And didn't even get paid for it...