Full Time Traders Where do you Put Cash?

[blackjack007]

Quote from sophiekay:

This question is for Full Time Trader's ONLY. Now that Fed has dropped rates, Where do you put your cash for best returns? I am a full time trader looking for a place to get good returns on cash without worrying about bank going under.

Looking at Everbank, WTDirect, etc.

Thanks.

you're asking for conflicting goals. you want the best rate but want the safest place too. you need to pick one, you can't have them both.

if you want safety, then put it into a major money market fund that invests solely in treasuries. if you want best returns, put it in a shitty fdic-backed bank that may go under any moment now. those banks are desperate for cash and will offer very attractive rates. looking at everbank's rates, i'd say they're probably in that category.

 

[Ivanovich]

I remember when people were on here touting the Everbank CDs in Iceland Krona several years back. It was all about the 12 or so interest they earned. Of course, there was a slight currency risk, but the dollar was headed to the toilet, right?

That worked out rather well for all involved.

 

[pookie]

A lot of people have gotten royally burned by Everbank. I was thinking about Everbank myself when I ran across this:

http://www.openmarket.org/2008/10/07/everbank-can-multiply-your-financial-woes/

 

[ML_QUANT]

I use a foreign Bank's CD with 19% annual and 16% daily interest!
The banks are Very strong and all 100% guaranteed by the Gov.
The only risk remains the Currency Risk which in the past year has worked the opposite it got stronger Vs. USD but in any case there is full hedging available by buying futures on local Gold/Coins' and shorting the US Gold futures for the same amount. All in all the margins on both sides are very low and such ops. will take off a couple of two points off of the net proceeds max and if the $ weakens this gets offset too!
So the average yield is about 16 to 20% after fully hedging all risks!!!!

BTW, everything is also 100% tax free.

 

[short&naked]

Quote from Ivanovich:

I remember when people were on here touting the Everbank CDs in Iceland Krona several years back. It was all about the 12 or so interest they earned. Of course, there was a slight currency risk, but the dollar was headed to the toilet, right?

That worked out rather well for all involved.

 

[sophiekay]

Glad to hear you have had a good experience with Everbank. They seem to have some "out of the box" products that are appealing.

I like keeping some cash on the sidelines. Along with disciplined position sizing, its one of many risk management rules I adhere to. Just a personal preference.

Quote from EMRGLOBAL:

Ive been with Everbank for Two Years. They have great short term CDs that are "Baskets" of Foreign Currenies". Great bank and the only one like it in the US.

And I would have to agree. If your a full time trader why are you sticking your cash in EverBank? Why in the hell are you not keeping it in your trading account (Holding Firm/Clearing Firm) for more buying power?

Full time trader use their cash intraday.

If you have a blow out fund, Everbank is an excellent hedge against you typical "Liquid" product.

 

[sophiekay]

OMG (eyes pop open). That is pretty scary. Thanks for posting!

Quote from pookie:

A lot of people have gotten royally burned by Everbank. I was thinking about Everbank myself when I ran across this:

http://www.openmarket.org/2008/10/07/everbank-can-multiply-your-financial-woes/

 

[sophiekay]

You know I never seriously considered corp bonds b/c of the credit crisis. But, you make a good point. This maybe precisely the time to buy. Thanks, Daal!

Quote from Daal:

Everbank money markets are still yielding something(2.5-3% I belive)
their 'worldmarkets' for fx is pretty much useless since they pay almost no interest.
The correct answer to this question is to take advantage of the credit crisis and search for corporate bonds with big yields that are unlikely to default, but it does take some time and it hurts your liquidity

 

[sophiekay]

Did you say "tax free"? Now you have my attention!

Quote from ML_QUANT:

I use a foreign Bank's CD with 19% annual and 16% daily interest!
The banks are Very strong and all 100% guaranteed by the Gov.
The only risk remains the Currency Risk which in the past year has worked the opposite it got stronger Vs. USD but in any case there is full hedging available by buying futures on local Gold/Coins' and shorting the US Gold futures for the same amount. All in all the margins on both sides are very low and such ops. will take off a couple of two points off of the net proceeds max and if the $ weakens this gets offset too!
So the average yield is about 16 to 20% after fully hedging all risks!!!!

BTW, everything is also 100% tax free.

 

[sophiekay]

Quote from blackjack007:

you're asking for conflicting goals. you want the best rate but want the safest place too. you need to pick one, you can't have them both.

if you want safety, then put it into a major money market fund that invests solely in treasuries. if you want best returns, put it in a shitty fdic-backed bank that may go under any moment now. those banks are desperate for cash and will offer very attractive rates. looking at everbank's rates, i'd say they're probably in that category.

Blackjack, you made me laugh. It is true. Perhaps I am searching for the "Holy Grail". But, there's always hope right? You made me think about Madoff's customer's. Like me they were looking for high fixed returns and no risk... Yikes!