Full Time Traders Where do you Put Cash?

Thanks Ivanovich. Sounds like Everbank may have some viable options, but I'll have to do my research or I could get burned.

I still like the 3% on the Money Market Fund. Wonder how they can pay so much when everyone else is paying 1.5 to 2%?

 

If you are an experienced prop trader where your buying power is fixed, this is a moot point, and all risk no gain by keeping more capital over whatever you are required + capital you prefer to keep to cover your trading volatility, in your prop account. Of course, for a trader whose b.p. is purely based on his capital, and he frequently profitably bumps to that b.p., that's a different story.

I think many other experienced prop traders likely feel, like myself, that we take enough risk every day we have no need to put the rest at significant risk.

That said, it all depends on where you are in life, how much money you have, your expenses, and your personality, and what you'd be happy with. Are you happy with the status quo? Do you want to build something much bigger? If so, then you're going to need to take some risks somewhere to really catapult yourself to another level financially speaking, whether it's in trading, or through an outside business.

 

I am not so sure govt bonds are the safe thing these days. They are doling out HUGE amounts of debt at low interest rates.

Another possibility, is corporate bonds of a REALLY established, large, growing company that is a dominant player.

Something like IBM or Intel or Toyota or Budweiser or Seagrams or Philip Morris or Walmart.

A

 

Totally! Also if on the hedging part, Gold rallies you could pickup US tax credits...!

 

Ever see the movie Papillon?:eek:

 

I agree with you that the pricing of gov't bonds is very inefficent, however, that doesn't mean that corporate bonds are any safer. In fact, as has been seen if corporations fail they get government money, so you might as well invest in treasuries.

Also if nationalization continues at this pace, there will be no difference between gov't and corp bonds-- it will all be Soviet Union junk debt level. LOL.

 

That is why you don't pick companies that are in trouble or doing stupid things like extreme leveraging. Even in a recession, people will smoke, drink and the other companies listed will be in much better shape than others.

 

Then again AAA doesn't mean much these days, does it?

 

my mattress is on the thicker side these days.......& i sleep sound.

 

ING at 2.4% at the moment.

Does anyone know if ING is as safe as they claim, and, if there are any alternatives?

Thanks in advance.

Mike