Before we start my report of my 2017 results and how I did to live up to my “2017 Challenge,” please take a look at my “2017 Challenge” page. My 2017 Challenge was a detailed list of particulars which ends with my goals for the entire year of 2017. My 2017 Challenge page was part of Main Street beats Wall Street the entire year. I spoke about my 2017 Challenge since the beginning of the year. It took me a little while to complete the page and I first posted about the challenge on February 10th, 2017. In this post I had a link to my challenge, check it out by hitting the link (February 10th, 2017).
I started 2017 with $110,000 in my trading account. I wanted my account to make $3000 a week. I wanted to withdraw $42,000 for the year as a salary. All other money made would stay in my account. I had a little problem with U.S. Steel (X) in the early part of the year and I only ended up taking $38,000 not $42,000. (I had 3000 shares of X, it took a big dip but came back up and I got out making $1200). My monthly withdrawals was, Jan $2000, Feb $2000, Mar $2000, Apr $3000, May $3000, Jun $3000, Jul $3000, Aug $4000, Sept $4000, Oct $4000, Nov $4000 & Dec $4000.
In my 2017 Challenge I predicted an account balance of $223,960 at the end of 2017. The 1st thing that changed my account balance is I started a “Gift Account.” This gift account I set up to gift shares of stock to my younger family members, nieces, nephews and grandchildren. I bought stock with profits from my trading account and transferred the shares to a different account. These shares will be given to the kids as gifts on special occasions, birthdays, Christmas, graduations etc. Below is a snapshot of the account value. This money would be in my trading account if I didn’t remove it.
Gift Account value
Another thing that affected my year ending closing balance was stock holdings that were below where I bought. On the last day of the year RH was down about $16.58. On 2000 shares thats $33,160. AMD was down $4.20. On 2000 shares thats $8400. And MU was down $7.44 for $7440 on 1000 shares. Thats a total of $49,000 on stock I’m still holding. All 3 stock are moving nicely the first 2 days of 2018 and I think they’ll be back up to my buy-in price soon.
After all commission fees were paid and my salary withdrawals were taken ($38,000), I predicted my account would be $223,960 on the last day of 2017. You must remember my gift account amount of $25,361 is not in my closing balance. And my stock holdings are down $49,000 but I still own them. Here’s a snap shot of my closing balance for 2017 from my statement page of my brokerage account.
Closing Balance 2017
Remember all my monthly withdrawals are out of this ending value. Also, all fees and commissions are out of this number. If I left the gift account amount in my trading account it would be $25,361 more to $176,487.99.
When calculating my closing balance in the beginning of the year I did not account for my stock holdings to be down $49,000. If my stocks were not down that amount, which they are, my prediction would be pretty close. If you add the $49,000 to the balance of my trading account and my gift account ($176,487.99) the total would be $225,487.99. I predicted $223,960. Once my stock holdings are back to where I purchased, my prediction is off by $1527. Yes, my stocks are down but they are moving nicely so far. As I write RH is at $91 (closed 2017 at $86.20). AMD is at $11.98 (closed 2017 at $10.26) and MU is at $45 (closed 2017 at $40.95). With the stock movement in 2 days my account is up $15,000 for 2018. Let’s hope the “Trump Train” can continue well into 2018.
Well, that’s my report on how my 2017 Challenge worked. With my stock holdings being down it messed with my plan a bit, however, I’m very happy with my 2017. Watch for my 2018 post. I don’t think I get a 2018 Challenge done but if I can match 2017 I’ll be happy. I took a lot of money out of my account to do other things like cryptocurrency. I brought my account down to $95,000 to start 2018. I’m gonna lower my monthly withdrawal to $3000 to start the year and bring it back to $4000 as my account goes back up. 2 days in my account is already up to the $110,000 area. I brought my account down because as I get older my risk tolerance is going down. If you are younger you might want to keep your account higher. I figured why do I have to play with a larger account? If I can still take 3 grand a month and have the account grow again, that’s all I need.
With the market moving you might notice me making less options trades. I am an options seller, not a buyer. So I am looking for my holdings to return up a bit before I start sell options again. 2018 might start a little slower that 2017.
Please send me comments on my results and any questions you might have. I like to know you’re still out there.
Happy New Year
Steve
The Options Coach
Steve, this is an amazing result. A real inspiration to me as I start my journey as an options trader. Thank you again for your generosity and goodwill in sharing your expertise and educating us.
I read your end of year 2017 Challenge report and I have mixed feelings about the $49,000 paper loss on RH, AMD and MU. Specifically whether you should add it back to your return for 2017. I understand what you are doing just not sure if you should add it back since the cut off date is 12/31/2017 (if I go strictly by the challenge). I would calculate the ending balance as $151,126 + $25,361 = $176,487 plus the actual balance of the stock values of RH, AMD and MU as of 12/31/17.
Having said all the above I consider it a small nit. Please continue with your postings and keeping the website going.
One day, hopefully soon, I plan to emulate you….exactly.
Happy New Year.
Devan, thank you for reading and letting me know I have readers.
I really didn’t want to be misleading to cause mixed feelings. I’m very sorry if I was. My ending balance was $151,126.99 plus the $25,361 (removed to gift account) for a total of $176,487 as you stated. I only brought up the $49,000 as a “What if?” In my report I did write, “If my stocks were not down that amount, which they are, my prediction would be pretty close.” I was trying to make a point that I put some work into my “2017 Challenge” and if not for RH, AMD and MU being down I would have been close. The bottom line: My holdings were down so I did not hit my prediction. But I’m still happy!
These stocks are moving nicely and I think they’ll be back up in a few days. These gains will go on my 2018 results.
Again, I’m sorry if I was misleading.
Keep studying, be careful and don’t get greedy. If you enter this field slow and steady, steady and slow, there’s a lot of money to be made.
Steve
The Options Coach
Thanks Steve for the clarification. No apologies. My bad for not interpreting your note correctly. You have achieved excellent results by setting the bar so high. I can only wish for a fraction of that.
Thanks again for the advise. Controlling my emotions will be key as I start. Will keep the saying “Pigs get slaughtered” top of mind.
Best Regards,
Devan
Devan, since I always preach “don’t get greedy,” I love the line “Pigs get slaughtered,” do you mind if I use it in Main Street beats Wall Street? I promise I’ll think of you whenever I do lol.
Steve
Absolutely Steve. Go ahead. Its part of an old Wall Street saying “Bulls make money, Bears make money, Pigs get slaughtered”.
Yes, I’ve heard it but never used it on this site. Thank you, you get the credit for bringing it to Main Street beats Wall Street!