Excess money ? How do you grow/store it ?

Discussion in 'Professional Trading' started by zanek, Jun 13, 2012.

  1. zanek

    zanek

    I'm curious what you all do when you have excess cash that you are not trading with.

    Let's assume you have $500K to $1M in profits from trading and you have it sitting in a high yield savings account earning less than inflation at 0.95% APR.

    How do you all make your cash work for you so it doesnt erode to inflation ?

    Real estate ? Buy businesses ? etc ?
     
  2. Bob111

    Bob111

    i have same problem and i'm sucks at investing. on top of that-i can't tolerate any risks(Thank you Lehman,GM ad whatever left in other 'safe' investments ie-fixed income)or big price swings. that's why i'm in day trading in first place. i want the end of this trading torture as soon as possible. any advise for losers like me?

    Thank you!
     
  3. yes, this is best advice you ever get ,buy 50/50 gold /silver coins
     
  4. zanek

    zanek

    Seriously ? Buy gold/silver coins ? That seems rather silly.

    Zero percent chance that I'd buy anything over $10k of silver/gold unless I had my own fort with a 24/7 guards. How are you going to safeguard a metal unless you live in the middle of nowhere.

    There is no intrinsic value in physical metals. You're only banking on scarcity and that there is a greater fool for buying your metal when fiat currency loses its value. To me, buying physical metals are for doomsday planners. I'm talking about solutions for our current system.

    I think this article sums up reasons why gold/silver isnt great.
    http://www.forbes.com/sites/stevedenning/2012/05/09/why-warren-buffett-wont-invest-in-gold/


    "“When we took over Berkshire, it was selling at $15 a share and gold was selling at $20 an ounce. Gold is now $1600 and Berkshire is $120,000. Or you can take a broader example. If you buy an ounce of gold today and you hold it at hundred years, you can go to it every day and you could coo to it and fondle it and a hundred years from now, you’ll have one ounce of gold and it won’t have done anything for you in between. You buy 100 acres of farm land and it will produce for you every year. You can buy more farmland, and all kinds of things, and you still have 100 acres of farmland at the end of 100 years. You could you buy the Dow Jones Industrial Average for 66 at the start of 1900. Gold was then $20. At the end of the century, it was 11,400, and you would also have gotten dividends for a hundred years. So a decent productive asset will kill an unproductive asset."
     
  5. Bob111

    Bob111

    [​IMG]

    i guess you wasn't there in 90's? or your chart history is too short.
     
  6. good p[oint ,buy Berkshire and Dow Jones Industrial Average,and theres best farmland in the world as well ,in ukrane
     
  7. those are shares ,you need coins
     
  8. <iframe width="420" height="315" src="http://www.youtube.com/embed/BkVwLzA70r8" frameborder="0" allowfullscreen></iframe>
     
  9. gold isn't supposed to be an invesment its more of a hedge against treasuries defaulting or high levels of inflation
     
  10. If the returns originated from trading, you want to reinvest your excess gains in trading.

    If what you search for is diversification due to financial fears diversify the brokers not your forte.
     
    #10     Jun 14, 2012