Percentage of liquid assets traded

Discussion in 'Professional Trading' started by Drew07, Aug 30, 2006.

  1. Drew07

    Drew07

    I'm curious as to what percentage of your total liquid assets most career traders actively trade with. What percentage do you think is too much? Do you keep cash in money market accounts and/or cd's as well or is everything in the market?
     
  2. lescor

    lescor

    That's one huge advantage of trading prop. You only have to put up a small portion of your liquid assets and have more capital to trade with than if you were 'all in' with maximum retail leverage.

    The remainder of your cash can be in diversified assets that are insulated from market and trading system gyrations.

    I personally keep 20% or less of my non-real estate assets in my prop account.
     
  3. As of the beginning of the month, it was roughly 20% in my main trading account.
     
  4. prop is fine if you want to only intrady trade. the problem comes if you want to hold large overnight. i do a lot of options and that takes 100% cash no margin. i used to have a problem holding a large amount in a brokerage account but ib is paying over 5% on credit balances which is as good as any money market so if i'm waiting for trades i'm getting paid just like a money market and when opp arises i have the cash ready to go
     
  5. ok bragert boy
     
  6. Drew07

    Drew07

    Interesting. Thanks for the replies.
     
  7. Is 100k enough to trade stock with at a place like IB using 4-1 intraday and 2-1 overnight and still give yourself the chance to make some money. (assuming you can make money)
     
  8. Well....run the numbers.....a great return is 20%....exceptional is 30%...more than likely you'll make 10%. Assuming these numbers are correct, you'll make somewhere betwen 20k and 120k, using MAX leverage.

    There are systems or strategies that can do better, but it's unlikely you'll figure it out right away.

    Good luck!