Hi, new to the forums, and thirsty for your advice.
I have approx 50,000 to invest from an elapsed fund which was making me around 16% pa. As an alternative I was looking at getting into positions trading. After doing much research on the subject I realised that I would need many many months research and paper trading to get to the stage where I would be confident risking my money on uneducated punts. So... in the mean time I was considering using a full service broker to do my trading decision making for me. I was hoping for a 50% capital growth 50% income stream from any earnings with a 5% stop loss. Is this reasonable? My questions are;
a/ Whilst I am aware that there is risk in any trade, I have heard stories of one of the bigger full service brokers losing a client 25% over 6 months. Why the broker didn't have some kind of stop-loss is beyond me. What kind of return can be expected from a full service broker?
b/ A Geelong brokerage recently collapsed losing all the clients investment money, so I was thinking of going with one of the bigger boys, Maquarie or the like. Having said that Cube financial also looked interesting (with an apparent return of 40% 2005-2006, don't know how it was hit by the latest market slump though). Does anyone have any experience with a good full service broker? I know that ASX have a database, but any recommendations would be greatly apprecaited?
c/ Am I being stupid using a Full service broker considering the fees and the fact they are working for their commissions, not my portfolios performance.
Your views and advice would be much appreciated.