I have a question because I am not sure what to do.
I have about 20 stocks in my three trading accounts.
. Since October I lost about $65,000.
My stocks are:
Invidia, Arm Apple Amazon, Meta, Novo Nordisk, CoreWave, Google, Palantir, SMCI, TSM, OKLO, VOO, QQQ, Microsoft, Open, Vistra, Broadcom, Crowdstrike and Tesla.
I want to try advisory investment company to manage my trading accounts. They will probably sell all or most of my positions. I think I have good stocks and they will recover but on the other hand the $65,000 lost makes me wonder if I’m doing good by waiting until I will recover my loses. I’m not in the red but under high price.
What should I do ?
Wait until my stocks will go up or let the investment company to take over right now ????
I will still have to move about $60,000 from my saving account to the brokerage account because I’m below the balance I need to be taken by them to manage .
My thinking is that I will loosing $65,000 if I will switch now.
Am I wrong ????
Switching to investment advising firm.
byu/Iceman60467 inStockMarket
Posted by Iceman60467
5 Comments
I’ve tried 4 times to use advisory trading firms. Yes, they will sell your current positions, you will lose your butt. And it is unlikely you’ll really make money, because most traders depend on you adding regular amounts to the account to make it look like youre making money by increasing your total.
Stockbrokers and investment people exist to make themselves money, not you.
The stocks you own look good quality. Hang on to them long term, or sell them when they go up.
You do know other companies exist outside the tech sector right?
Almost your entire portfolio is concentrated into the tech sector. That’s a lot of risk.
You have VOO, which is a good anchor index fund, and QQQ is good for diversification among the components of the NASDAQ-100 index, which are largely tech stocks or other high-growth companies.
However, owning a bunch of tech names like that on top of your QQQ exposure concentrates a lot of your portfolio in one sector. Tech is volatile.
I would sell everything but VOO and QQQ and spread it out.
Consumer discretionary, real estate, energy, etc.
There is no need to pay the fees that an investment advisory firm will charge you. You just need to spread your money out.
Most of these companies have value. The price has dropped since you bought them, but the value has not changed. If you have patience the prices will likely recover in time, and you will not have lost any money. You will only lose money if you sell now.
Investing in individual equities requires patience and confidence in your ability to see value where (and when) others don’t. If you don’t feel you have the patience and confidence for a small dip like this—there will be much bigger ones in the future!—then perhaps investing like this is not for you.
The usual advice in this situation is not to hire an advisor, but to invest in index funds, which provide a happy medium of potential growth and limited risk, about the same thing a professional advisor would get you, while costing very little.
Big losses mess with your head that’s normal. An advisor can help *if* you want a plan and less emotion, but don’t hand things over blindly; ask how they’d change risk, concentration, and time horizon before they sell anything. Waiting just to “get back to even” is usually emotion talking, not strategy.