Should Trading Reserve Be Invested In Equities ETF, Crypto ETF, Real Estate ETF or Commodities ETF

0FXTrader0

Established member
552 86
My trading reserve is a cost currently in cash (losing to inflation) and paying admin fee for holding account. What do other traders suggest, is it wise to hold equities near all time highs. I keep to cash as dont want to hold the bag for a drawdown in equities reducing size of my future trading risk although it could go the other way.

I don't believe in crypto even though it has performed epically and there is a ETF to invest in.

What portfolio diversification do other traders have for there trading reserve?

The model below does not have commodities or crypto.

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0FXTrader0

Established member
552 86
Does investing in ULVR on LSE act similar to a global equity holding as is a diversified company around the world and LAND as a real estate fund mainly UK, STAN as EM play. Rather hold equities hedged to GBP and not ETFs as there a possible rogue trader or mismanagement risk.

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MasterOfCoin

Experienced member
1,228 477
Sigh.

Trading 101.

You are NOT going to become wealthy by paying fees or other people to manage your money - they are.

Whilst you can nevertheless expect a modest return by doing so, the objective is to increase your own wealth, not theirs.

But essentially, the returns you can achieve with your money is largely down to how much effort YOU are prepared to put into actively managing it.

Your trading reserve needs to be in stable but liquid assets and kept relatively low to your overall assets balance.

Comprende ?

;)
 
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0FXTrader0

Established member
552 86
You miss the point as standard coin. I actively leverage trade a portion of the funds and am looking at how to invest the reserve not actively trade that part but for it to sit on the sidelines diversified.
 

MasterOfCoin

Experienced member
1,228 477
You miss the point as standard coin. I actively leverage trade a portion of the funds and am looking at how to invest the reserve not actively trade that part but for it to sit on the sidelines diversified.
The point stands.

You need to diversify it in liquid assets that you can convert at whim.

Keeping that relatively low as a proportion of assets is a function of the rather lower returns you can expect from it.

That's the price of liquidity. Low risk, near instant access, low returns.

You can still get better than 4%, but that ain't going to make you rich.

It's still an improvement on the paltry cut you'll get by handing it to others, who'll make about the same and only pay you part of it.

Got it yet?

;)
 

0FXTrader0

Established member
552 86
You think that owing equities is handing money over to someone else?

Equities are part of businesses the growth with the economy and provide dividends as income.
 

MasterOfCoin

Experienced member
1,228 477
That's not the point -point is to beat inflation. Which cash is losing badly at. The get rich part is from the high risk leveraged trading not the reserve.
Please pay more attention.

I did not write 'cash' I wrote 'liquid assets' - not the same at all.

You'll LOSE money to deflation of it's value by keeping it in cash.

Do NOT keep reserves in case, only money you need to spend.

:)
 

0FXTrader0

Established member
552 86
Looks a better option than cash. Two underperforming LAND and STAN / two outperforming RIO and ULVR.

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0FXTrader0

Established member
552 86
Does investing in ULVR on LSE act similar to a global equity holding as is a diversified company around the world and LAND as a real estate fund mainly UK, STAN as EM play. Rather hold equities hedged to GBP and not ETFs as there a possible rogue trader or mismanagement risk.

View attachment 298084

As the UK market only represents 5% of world stock markets. I am hoping the stocks I choose are more geared to global diversified, EM, Real estate and commodities. Hopefully I am not just going to get simply UK market returns does that make sense or should I invest via funds/etfs to get the required diversification?
 
 
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