Putting unused money to work!!

P

Pinoy_Trader

I am a task master and likes to see everyone working...therefore I don't like seeing money that I don't use for my daily trading just sitting around in my account and not working to increase my value!! Therefore, how much do you typically keep in your account to trade?? what do you guys do with the money that you are not using for daily trading?

I feel like I am not putting those funds to work at all. I was thinking on putting it on dividend ETF or stocks.. How bout you?
 
Pinoy_Trader said:
I am a task master and likes to see everyone working...therefore I don't like seeing money that I don't use for my daily trading just sitting around in my account and not working to increase my value!! Therefore, how much do you typically keep in your account to trade?? what do you guys do with the money that you are not using for daily trading?

I feel like I am not putting those funds to work at all. I was thinking on putting it on dividend ETF or stocks.. How bout you?
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At hedge funds it´s called "capital efficiency" You don´t let "money" sitting around in your account. You take advantage of every reasonable credit lines your PB is offering.

What Is Return on Capital Employed – ROCE?

Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is used. In other words, the ratio measures how well a company is generating profits from its capital. The ROCE ratio is considered an important profitability ratio and is used often by investors when screening for suitable investment candidates.
 
Nighthawk said:
At hedge funds it´s called "capital efficiency" You don´t let "money" sitting around in your account. You take advantage of every reasonable credit lines your PB is offering.

What Is Return on Capital Employed – ROCE?

Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is used. In other words, the ratio measures how well a company is generating profits from its capital. The ROCE ratio is considered an important profitability ratio and is used often by investors when screening for suitable investment candidates.
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what do you do?
 
Pinoy_Trader said:
I am a task master and likes to see everyone working...therefore I don't like seeing money that I don't use for my daily trading just sitting around in my account and not working to increase my value!! Therefore, how much do you typically keep in your account to trade?? what do you guys do with the money that you are not using for daily trading?

I feel like I am not putting those funds to work at all. I was thinking on putting it on dividend ETF or stocks.. How bout you?
More...

If you are a trader, risk management should be job number 1. What does it entail? Risk no more than 2% per trade. Personally, I do not risk more than 10% of my monies at any given time and limit myself to 5 trades total. Having your monies in cash is a position. Of course, you want your monies working but, opportunities come when you least expect it like right now. If I had money to invest, if I saw a nice trade opportunity, I can just take it. If you are fully invested 100% already, how can you take advantage? Worst of all, you have 100% of your monies at risk and can suffer a huge devastating loss even wiping out all your monies. That is dumb on all counts.
 
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