Where are you parking your hard earned dollars?

TraDaToR

TraDaToR

Hello,

I am just wondering what fellow traders are doing with your savings earned in the market?

Yes I know... Continue to grow and compound into oblivion...LOL

Thanks but I am looking for alternative investment for my personal wealth( I trade incorporated and pay myself dividends )... And somewhat less risky...

Bonds ? Real estate? Value investing?

I am just looking for expériences from people who at one point of their trading career were sitting on a little pile of cash.

Thanks in advance
 
The problem with traders - they are not investors, i.e they do not have the method of investing (assuming they have the method of trading).

Without the functional investing method all investing by the trader is no different than investing (or trading) by any other amateur...with similar results :)

Therefore "parking" (since we do not know how to invest) is the correct term.
So your question is the question of the direction that one blind man asking the other blind men :)

And like all "blind" traders or investors it ends up the same: they hold each other, walking aimlessly in the dark
 
Today I'm very generous and give you my professional investment list. Maybe the best overview you can find. Use it wisely and thank God I save you a lot of time ;)


A. Primary Trend Investing
• Indices (DE, US, CH)
That's where most of my spare money is parked now. I just buy an index ETF (QQQ) and hold it until the primary trend breaks. (= major retracement). You could also call it "position trading". At the moment China is also very promising.
ROI around 20% a year in bull markets

B. Dividend Income
• High Dividend Stocks
• Asset-Backed Securities (REITs, MLPs)
Dividends around 8%-10% a year. Fluctuations in price likely. Overall (including dividends) same results as index primary trend investming, but the SL is much higher and less predictable => not preferred

C. Money Market
• USD fix term deposit
Currently around 10% a year on fix term deposits (1yr fixed) with reputable international banks. That's kind of an insider, maybe not available in the US.

D. Special Situations
Long-Term Macro Mean-Reversion

D1. Stock Market Consolidation After Crash
• Value Investing - Value Corporations
• Growth Investing - Highly Volatile Growth Stocks
• Index Investing - Prime Stock Indices
• Volatility Investing - XIV
Not possible, stock prices are too high

D2. Interest Rates Cut Or Hike
• Long/Short Government Bonds (Treasuries) and Corporate Bonds
Not reasoanble with current interest rates

D3. Mispriced Instruments
• Over/undervalued assets
Have a look at commodities - there are many options at the moment, for example sugar and coffee are really cheap. But you must be patient and let it sit for years possibly.

So that's all I found after months of intensive research. Opportunities that yield below 3% are not listed, I think it's not worth the risk. All (!) investments have risks. Neither is anything listed that requires work (also buying a house and renting out rooms) - that's called a business in my understanding and not an investment.

Alright, that's all I've found so far. If you know anything else guys, please let me know ;)

Good luck!
 
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you're very welcome ;)

Hope it helps. At least you got some hard information in hands now, unlike the discouraging advice from my fellow posters.
But I can understand them, times are pretty hard now and chances for meaningful investment are not as plentiful as they used to be.
 
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I might add that where I live long term capital gains( plus-values ) are not taxed whereas dividends and interests are.So I might prefer some capital gains generating scheme ...
 
Did you mean to say 1% vice 10% on USD money market? With 1 year treasuries at .27%, you're clearly not lending to a "reputable" bank if they have to pay that much to attract capital. There has to be some significant risk you're unaware of, or some kind of back story or else that would be arb'd away in a heartbeat! Love to be wrong, if so please do provide details as I'd love to get in on that.
 
SwingToWin said:
Today I'm very generous and give you my professional investment list. Maybe the best overview you can find. Use it wisely and thank God I save you a lot of time ;)


A. Primary Trend Investing
• Indices (DE, US, CH)
That's where most of my spare money is parked now. I just buy an index ETF (QQQ) and hold it until the primary trend breaks. (= major retracement). You could also call it "position trading". At the moment China is also very promising.
ROI around 20% a year in bull markets

B. Dividend Income
• High Dividend Stocks
• Asset-Backed Securities (REITs, MLPs)
Dividends around 8%-10% a year. Fluctuations in price likely. Overall (including dividends) same results as index primary trend investming, but the SL is much higher and less predictable => not preferred

C. Money Market
• USD fix term deposit
Currently around 10% a year on fix term deposits (1yr fixed) with reputable international banks. That's kind of an insider, maybe not available in the US.

D. Special Situations
Long-Term Macro Mean-Reversion

D1. Stock Market Consolidation After Crash
• Value Investing - Value Corporations
• Growth Investing - Highly Volatile Growth Stocks
• Index Investing - Prime Stock Indices
• Volatility Investing - XIV
Not possible, stock prices are too high

D2. Interest Rates Cut Or Hike
• Long/Short Government Bonds (Treasuries) and Corporate Bonds
Not reasoanble with current interest rates

D3. Mispriced Instruments
• Over/undervalued assets
Have a look at commodities - there are many options at the moment, for example sugar and coffee are really cheap. But you must be patient and let it sit for years possibly.

So that's all I found after months of intensive research. Opportunities that yield below 3% are not listed, I think it's not worth the risk. All (!) investments have risks. Neither is anything listed that requires work (also buying a house and renting out rooms) - that's called a business in my understanding and not an investment.

Alright, that's all I've found so far. If you know anything else guys, please let me know ;)

Good luck!
More...

I'm just capturing your information-filled post in case you decide to delete it later. :cool:
 
Sig said:
Did you mean to say 1% vice 10% on USD money market? With 1 year treasuries at .27%, you're clearly not lending to a "reputable" bank if they have to pay that much to attract capital. There has to be some significant risk you're unaware of, or some kind of back story or else that would be arb'd away in a heartbeat! Love to be wrong, if so please do provide details as I'd love to get in on that.
More...

i would like to know this as well! 10%???!!
 
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