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Tackle Today: Portfolio Design & Managing Multiple Accounts

December 17, 2021

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« Identify the mistakes and correct them. »

Happy Friday Traders,

We have been featuring the importance of portfolio design all week and as someone that desperately needed one, I thought I’d share a few tips on Portfolio Design especially in the area of managing multiple accounts.

I remember sitting in Coach Tim’s office back in August 2015 going over the different types of accounts I had back then. We were using a whiteboard at the time and when Coach Tim started to write down the different account types, he must have felt like he was in an infomercial because every time he’d turn to begin to address each account, I’d quietly say “I have one more”. Eventually, we identified all the different accounts and went to work.

Having multiple accounts to manage adds to the complexity and I absolutely, unequivocally needed a portfolio design because those accounts were a hot mess!

Whiteboard: Portfolio Design & Managing Multiple Accounts
Whiteboard: Portfolio Design & Managing Multiple Accounts

After listing the accounts, the next order of business was to identify which broker the accounts were being held in, then list what positions we’re currently being held in each account, set the appropriate goal, and rate the level of risk for each of those accounts. This process was so helpful because it didn’t take long for Coach Tim to figure and point out the mistakes and help correct them.

For example, let’s say you manage 4 accounts. A traditional IRA, a Roth for yourself, and maybe another Roth IRA for your spouse or kids or parents and, and you also have a Margin account. You then have categorized the IRA and Roths as growth accounts and the margin as your cash flow and speculation account. You realize that you are bleeding speculation trades into long-term portfolio accounts, or the products invested aren’t the best the market has to offer. A Roth or IRA provides you with more flexibility to invest in individual stocks or index funds and get rid of high fee Mutual Funds. Merging accounts where possible is also helpful. If you’ve worked at different companies each time leaving that 401K with your previous employer or converting it to a traditional IRA each time then you need to determine whether having one account is best for you and your goals. You want to make sure your account is the right account for the type of strategy you are planning on executing. During the different seasons of your life make sure the accounts are managed accordingly. Let’s say you are planning on taking off the next week for the holiday season and won’t be able to be as attentive to the markets are you normally would be. If that is the case, take a break from speculation trading. Manage your cash flow and growth accounts accordingly and enjoy the break! No need to worry and stress about your speculation trades during Christmas or New Years’ party.

Tonight ladies, we have our Women in Trading webinar at 8:30 PM EST. On Monday join us for our special webinar on Portfolio Design. Check out the info below!

Coach Em.

🛑 Upcoming Webinar › Portfolio Design for Beginners: How to Design your Trading & Investing Portfolio | Dec 20th at 8:30 PM EST

Join Tackle Trading in this upcoming Trading For Beginners webinar on the basics of Portfolio Design and Delta Weighting for traders and investors alike.

Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Tim goes LIVE.

Chart of the Day: $WM testing resistance

Chart of the Day: WM testing resistance

Video of the Day: Queen’s Court: How to Manage your Trading Account During the Holidays

Coach Emily asks Coach Tim for advice on how to manage her trading account while she’s busy during the Holidays in this Queen’s Court segment.

Options Theory: Bear Put Spreads

This video walks step-by-step through the bear put spread strategy and how to build it in Thinkorswim.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s episode when Coach Gino Poore talked about Scanning for value & comparing undervalued stocks using P/E & PEG ratio or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

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One Reply to “Tackle Today: Portfolio Design & Managing Multiple Accounts”

  1. MistySuggs says:

    Hi sweet Emily. Thank you for your transparency in showing us your portfolio design (when you were a beginner). I’ve taken to heart writing out the design for all the accounts I trade and which strategies I’ll do. It’s made a world of difference in keeping me focused and not chasing so many trading squirrels.

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