Managing a large Account for Income?

[Illini Trader]

he title said “for income” but you are thinking trend following which usually implies long term wealth

When I say "trend following" I am thinking of taking advantage of the 2 to 8 week moves in a stock not a long term trend. See my charts in Post #23

 

[Ninja Mobile Trader VPS]

Isn't Photoshop fun?

It's a free trading view indicator I created called "BTFD".
First it uses moving averages to determine if a stock is in a long term up trend.
Then within an uptrend identifies a dip and plots "BUY" if there is a strong breakout from the dip.

Pine Script can be very powerful in trading view.

 

[Illini Trader]

When I say 'sector rotation' check out the attached charts for COP and HD. When COP concluded a nice move HD began one. Sure it looks easy looking at a chart after the fact but the opportunity is there. This is a 2 Day chart

 

[ZBZB]

I did do a lot of selling Iron Condors on SPX in 2016 and 2017 and letting them expire with the Cash Settlement. I did it with every expiration entering the trade late in the day prior to expiration. I had good success but when volatility hit in 2018 it seemed like the Market Makers could not build enough premium into the options and I had too many max losses so I quit doing that. I never got back to that so I don't know how that strategy would be doing in today's kind of market.

See this backtest, maybe on the day of expiry is better.
https://spintwig.com/spy-short-put-0-7-and-45-dte-leveraged-options-backtest/

 

[themickey]

The problem for the majority, unlike real estate, markets continually morph in speed, direction and themes.
So it is difficult to handle, a bit like changing girlfiends every year, they all have different moods and tastes and knowing them takes time, or you have to be very astute at gauging them.
For an investor or trader being able to cope with constant change is key.
So this is the problem with indicator tools as well as investment advisors, if they are not adaptable, (like a moving average) they are lagging, always a little too late participants at the latest fashion parade.
So the point I'm making, investing for income is a moving target, the prize being there one moment, then gone, so this forces one to keep moving their sights.

 

[Pekelo]

Here is my problem. I am almost 77 and have some concern about how my 2 kids are going to manage their investments when I am gone.

I am going to have to assume here, but your kids are at least 30+ if not 40+. They are more than adults, they are (almost) middle age.

Why don't you let them decide what they want to do with the money? Unless you put it into some kind of trust fund, they can just cash it out and you won't be the wiser, because excuse my truthiness, you will be dead.

So unless we are talking about teenagers (thumbs up dude), they are old enough to handle the money. And if they are screw it up in a few years and spend it? Money is made to be spent, not to hold it until you die.

Also once your kids are adults, you are not responsible for them. So my advice is that take some of that money AND LIVE IT UP BABY!!!!

 

[Illini Trader]

AND LIVE IT UP BABY!!

I like the sound of that. and you are right, ages in early 40's so I don't deserve that "thumps up"

 

[smallfil]

When I say 'sector rotation' check out the attached charts for COP and HD. When COP concluded a nice move HD began one. Sure it looks easy looking at a chart after the fact but the opportunity is there. This is a 2 Day chart

Hindsight, it is easy when you know everything and how it works out. When you are actually, trading, you do not know in advance if a trade will work out or not. Inspite, of that, you take your shot when it is there. If you look for 100 reasons, the trade would be long over. You keep taking those trades knowing if you are trading with the major trend, 80% of the time atleast, you should win. That should be more than enough to make monies on.

 

[Snuskpelle]

Viability of an active strategy aside, the primary thing that crosses my mind is that your kids will do what they will do. Yeah their perspective is unrealistic (perpetual consistent income from market) but expecting them to actively manage a strategy that they didn't build themselves is probably unrealistic as well without knowing about your specific relationship. Not because they wouldn't be capable of it, but because without years in the market they see things differently. And why not, since trading ends up being a shitty use of time anyway for most people that dip their toes in it.

Just make it 100% clear to them bull markets never last forever and they need to plan their finances accordingly.

 

[comagnum]

Maybe consider setting up in a trust investing through a few of the better funds. There are some with stellar long term track records with reasonably low mgmt fees, like 2%.

Let's face it, novice traders have a success rate on par with surviving a jet airplane crash.