I'm not rich, not even close but I have accumulated some capital by living a very simple life, mostly free of luxury and no debts. In the meantime I dabble with daytrading, last year I had returns of 20% of my trading capital (not my net worth) but I'm not sure if this was luck or just the way of the market in 2009, as things got oversold big time. Well, back to the topic at hand, where should I park my savings ? On one hand the interest rates can't go any lower, on the other hand I'm not convinced my trading skills are that good for me to use most of my capital in trading. Hopefully I get there someday but can't rely on wishful thinking, only on consistent steady results. Needless to say, I could use some assistance, don't feel comfortable visiting sharks in firms for guidance, would like an open mind in this matter. Thank you for sharing your thoughts. No Heat
This thread has some info on that might be useful http://www.elitetrader.com/vb/showthread.php?s=&threadid=186955
Why not keep it in a separate account with your broker and take absolutely the best set ups with it--maybe a trade once every 2-3 months. And I mean absolutely the best setups. And in the meantime it would sit there and earn interest however meagre todays money market rates are. I wouldnt advise mutual funds--market has gone too far too fast and most of them will lose it anyways. Gold is too far too even though it seems it can go at it again soon. How about just leave it in cash until you find some opportunity--sometimes best trade is to do nothing. I think thats where you find yourself now.
Just another idea that one day I will try to implement - why not try to capture 1-3 % on relatively safe deals such as the one that happened in bni- depending on who is behind the deal could be a very safe bet as a trade- when it was HET harrahs you could ve made almost 5%
I think that is one of the smartest things I've heard. So true. I'm in the same situation right now. I think the best thing to do is sit and wait for an opportunity rather than rush into something and get burned.
Good suggestion, think I'm gonna take your advice. As far as earning interest, I got plenty of cash sitting on IB and it's not earning enough for a cold cup of coffee No Heat
Good idea, I have put my extra money into my home and am looking at a rental home considering how much prices have dropped and the interest rate is so low.
Here are two that I own for dividends - you can probably find better ones but I have confidence in these two names--ECA split into CVE and ECA --capital appreciation has been good but I continue to be a long term holder (if I see technical meltdown on other bad news I will get out but so far ECA is up about 50% +dividends and FRO up about 40% --some might say they are contra trades when I bought em but for me I keep it simple --narrow down the stocks and just wait for them when you think its a good time to buy When you look for dividend stocks make sure companies have been around for a while (relative) and history of paying dividends TK is another one you can look at but I dont own it --had a choice between TK and FRO You can use Finviz or any other site for search.
I am young 38 so I havent seen the high interest days but anything under 10% doesnt really attract me with historic inflation being 4%--esp if you are good financially --anyone who has traded market for sometime is probably better than 95% of the college taught financial analysts, financial planners or mutual fund managers.