Please do not laugh at me...

[pktruckdriver]

Hello everyone I just seeking some friendly advice, all hypothetically of course (my Disclaimer...lol).

If you are a true first time investor, which I would be, so I need to try to be frugal , but yet having some risks is expected for sure. So the questions I have are below:

Starting investment amount 100k


Should I do open maybe 4 accounts at 25k each or 1 acct. for 100k

Who should I open accounts with, Etrade, Scott Trade, Merrill thru BoA ?

I ask because I do not know if these small amounts will even be worth the time to try investing with, as I may have unrealistic thoughts on what a 25k Stock trading Account could make with totally aggressive trading, then another more conservative and still thinking on the other 2 , which is why I would just throw this out and see what you guys say.

Nothing will be taken as true advice, anything mentioned in this post is strictly for education purposes only.

Thank you guys

[FakeNameChanged]

Originally Posted by pktruckdriver

Hello everyone I just seeking some friendly advice, all hypothetically of course (my Disclaimer...lol).

If you are a true first time investor, which I would be, so I need to try to be frugal , but yet having some risks is expected for sure. So the questions I have are below:

Starting investment amount 100k


Should I do open maybe 4 accounts at 25k each or 1 acct. for 100k

Who should I open accounts with, Etrade, Scott Trade, Merrill thru BoA ?

I ask because I do not know if these small amounts will even be worth the time to try investing with, as I may have unrealistic thoughts on what a 25k Stock trading Account could make with totally aggressive trading, then another more conservative and still thinking on the other 2 , which is why I would just throw this out and see what you guys say.

Nothing will be taken as true advice, anything mentioned in this post is strictly for education purposes only.

Thank you guys

For starters, Scottrade turned into TD Ameritrade and is now part of Charles Schwab. I use them and they're pretty good for someone who manages his/her own account. With zero experience, I wouldn't suggest you do that.

You should talk to some friends and get a recommendation for a financial advisor that they like and trust. If you want to venture into doing some of your own thing, maybe start real small, not more than 2.5-5.0K, and put the rest with someone who can manage the balance to your desired goals & risk tolerance. Being aggressive for a first time investor could be a disaster, if you're managing the whole 100K. If you're able to grow the 2.5 or 5K while you're learning, then move a little more into that account.

My experience with advisors at the no cost brokers, like E-trade, Scottrade/TD Ameritrade shows that their advice is pretty limited. A broker at Merrill will be hell-bent to talk you into giving him/her the whole 100K. Generally full service brokerages have better educated advisors, but they can be hit and miss also. Talk to friends or acquaintances at church, or golf buddies, to find who they like. Don't use Insurance companies. Lean towards an advisor that can school you along the way.
(edit): Avoid Wells Fargo, even though they're the 3rd largest brokerage firm in the country.

[pktruckdriver]

Wow , thank you I appreciate your response and was surprised of the Wells Fargo warning , how did you know I have an appt. with the FA at Wells next week. Also the Merrill guy too, and another who suggested annuities to me, so I am choosing for now no annuities.

Yes it would be nice to attempt to manange an acct , but need alot more schooling and or training video's from different self trading companies, as well as a few investor websites and forums had a suggested video or two to help newbies.

But I am open to anyone here who has ideas, but was also surprised you think 2.5 or 5k only o practice with, honestly if I lose then t is max 5k, but if all went well and I did great, what could I expect in 6 month to a year?

again thanks for reply

[FakeNameChanged]

Originally Posted by pktruckdriver

Wow , thank you I appreciate your response and was surprised of the Wells Fargo warning , how did you know I have an appt. with the FA at Wells next week. Also the Merrill guy too, and another who suggested annuities to me, so I am choosing for now no annuities.

Yes it would be nice to attempt to manange an acct , but need alot more schooling and or training video's from different self trading companies, as well as a few investor websites and forums had a suggested video or two to help newbies.

But I am open to anyone here who has ideas, but was also surprised you think 2.5 or 5k only o practice with, honestly if I lose then t is max 5k, but if all went well and I did great, what could I expect in 6 month to a year?

again thanks for reply

Google Wells Fargo fraud case, this wasn't too long ago. Plus I have personal negative experience with them. Brokers want you to choose annuites, because they pay them the best, by far. A broker can make 5,000 to 7500 by putting you into a 100,000 annuity, and they're a royal pain getting out of once you're in. The annual fees on annuities also eat into any gains.

You said earlier, that you want to be frugal, and also aggressive. That's kind of contradictory. I'd not want to give an estimate on how much you could expect in 6 months or a year. Managing risk is the best thing to learn first, second and last. A big drawdown on your 100k will make you curse the day you asked for financial advice on the internet. GL.

[PaceAdvantage]

Originally Posted by pktruckdriver

I may have unrealistic thoughts on what a 25k Stock trading Account could make with totally aggressive trading

Unless you're a seasoned trader with a winning method and a mentality that sticks with the method no matter what, then you'd probably do just as well lighting that 25k on fire.

[Red Knave]

Originally Posted by PaceAdvantage

Unless you're a seasoned trader with a winning method and a mentality that sticks with the method no matter what, then you'd probably do just as well lighting that 25k on fire.

PA's advice is spot on. Even if you do have all the requisites you can still go broke.
My advice, at your stage of life and experience in the markets, is to go with a simple balanced and diversified set of ETFs. Research a couple of high profile robo-advisors, like through Schwab or Fidelity, then set it and forget it.
Trading is for the young or experienced.

[davew]

what is totally aggressive trading and worth your time?

are you planning on trading yourself and how many hours a week of your time?

I ask because there are day trading rules and margin requirements.



Haven't seen you around in awhile, hope you are doing well.

[MooseDog]

Originally Posted by PaceAdvantage

Unless you're a seasoned trader with a winning method and a mentality that sticks with the method no matter what, then you'd probably do just as well lighting that 25k on fire.

+1 on this. Given your history, you are probably going to forge ahead anyway, but here are bits from me...

1) Don't trade options or on margin. You've got enough to trade cash only. Options and margin are where people tend to lose their s**t.

2) Learn about something called "payment for order flow". The financial markets are rigged far worse than what you'd ever imagine in racing. Use a broker like Fidelity that doesn't participate in this practice.

Good luck, Patrick!

[pktruckdriver]

Sorry clarification on a few things

Being Frugal and being Aggressive, what that means, is

I would have maybe a few Accounts open and a few of them will be very aggressive, and a couple will be less aggressive, hope this clears it up.

I truly have no idea what a guy with 25kin the Market could aggressively make in 6-12 months period?? Honestly I never asked anyone who actual does this for a living , so my knowledge is limited, forgive me.

Thanks for responses

All info given is for educational purposes only

[pktruckdriver]

Originally Posted by MooseDog

+1 on this. Given your history, you are probably going to forge ahead anyway, but here are bits from me...

1) Don't trade options or on margin. You've got enough to trade cash only. Options and margin are where people tend to lose their s**t.

2) Learn about something called "payment for order flow". The financial markets are rigged far worse than what you'd ever imagine in racing. Use a broker like Fidelity that doesn't participate in this practice.

Good luck, Patrick!

Thank you very much, but it is looking like patience needs to be honored here, as this will not be a game and I truly am not a self-trader , not even a little bit.

Using Fidelity or Fischer Investment and , as you all say be very careful and let the professionals do it.

Moosedog davew PA Red Knave


I appreciate your suggestions and will be patient and cautious as I must be responsible.

I am doing well for all I been through since leaving horse playing years ago, but I am alive and thankful and for me that is worth celebration

[PaceAdvantage]

Originally Posted by pktruckdriver

I am doing well for all I been through since leaving horse playing years ago, but I am alive and thankful and for me that is worth celebration

Awesome. Glad to hear it!

[proximity]

Originally Posted by Red Knave

PA's advice is spot on. Even if you do have all the requisites you can still go broke.
My advice, at your stage of life and experience in the markets, is to go with a simple balanced and diversified set of ETFs. Research a couple of high profile robo-advisors, like through Schwab or Fidelity, then set it and forget it.
Trading is for the young or experienced.

this is what i do (fidelity go) and in pk's situation i would open both an ira and taxable brokerage account.

if you act quickly (before may 17) you could still fully contribute to a 2020 ira ($6,000 or $7,000 if you're 50 or older). so you could put in 6-7 for 2020 and 6-7 for 2021 to start with 12-14 k in your ira and put the rest in a taxable brokerage account.

it is a long term game though.