% of net liq in brokerage account to be used in trading stocks or options

[ironchef]

Compounding is real!! On my CDs and treasures, it matters when they mature. I do NOT want a CD maturing at Schwab on a Friday before a 3 day holiday!!

In 1980-81 (old geezer here), it mattered when the CD matured. You wanted it to mature on a weekday...To renew or move your CD (this was before online brokers). The principle still remains.

Many people do not understand "the float"...They do no understand compounding money on top of compounding money.

Your money really does work for you, rather than you working for your money...

Thanks for sharing, very interesting perspectives.

 

[ironchef]

%%
80% average stock market sounds like a winner
I do some ETFs that don't average beating SPY or QQQ in 10 years;
so I do that sector smaller , because I am interested in it.
Charlie Munger is almost always a good read; he loved to read also

%%
80% is way too much if I listened to my broker/CFP, he said I should keep the percentage = 100 - my age, in stocks and the rest in bonds.

But I ignored him because if he is right, he would have retired to Monte Carlo and not charged me 1% NAV.

I followed Munger but couldn't emulate his successes.

 

[ironchef]

Elite traders, l want to ask for your opinons:
1. what % of an account should be used for trading options or options on futures like /es /nq or /mes /mnq and how do you measure that % ? (l think its the % of bpr or maintenance margin required divided by net liq) . to make an 'acceptable' amount I realise that smaller accounts will have to use a far larger % than big accounts. is there a link for video or info on this
2. what is best way to grow a tiny 7k account?

thanks

I just noticed you are a Hongkonger.

My opinion, short answer, for a newbie with meager capital, on #1 is don't. You are better off betting on horses:

https://www.straitstimes.com/asia/the-gambler-who-cracked-the-horse-racing-code-in-hong-kong

As for #2, I already gave you my opinion.

 

[murray t turtle]

%%
80% is way too much if I listened to my broker/CFP, he said I should keep the percentage = 100 - my age, in stocks and the rest in bonds.

But I ignored him because if he is right, he would have retired to Monte Carlo and not charged me 1% NAV.

I followed Munger but couldn't emulate his successes.

%%
MR Munger sounds better;
but even the most+ best mutual funds dont do 100%, 1-3%[edit cash-money market] for redemptions \
so no panic selling.
LOL. Sounds like to much bonds/ if using a good budget like Dave Ramsey Budget.
Planned selling is different:
I like well managed money market, much more than bonds, but that's personal