Is now the time to take a trading holiday?
Posted: Wed Dec 28, 2011 11:42 pm
Over at the MF Global thread on page 37, we have reference to this article;
http://www.zerohedge.com/news/guest-pos ... ose-are-we
This, to my mind, is essential reading for anyone with any money in any trading account.
It is a disturbing read. Definitely for Adults Only!
The gist of the article is that no-one’s money is safe. . . . as we all now know
Segregated account means nothing. . . . as we now all know
Regulators have basically told the ‘little man’ to shove it . . . .as we now all know
It’s every man for himself. . . . as we now all know
. . . and since it is every man for himself what do you think will happen when the next ‘MF-Global-type-Firm’ runs into trouble? There will be a lighting-speed mad scramble for the exit door with the majority being trampled underfoot.
I have said in other threads that I’m watching the share price of IB with a keen eye, but so are thousands of others.
I think it’s naïve of me to think I can get out in front of others if TSHTF at any stage. ( & then you have the infamous clawback provisions to deal with even if you do manage to get out)
So, having said that, I am seriously playing with the idea of closing my IB account and taking a one year trading holiday and simply watching the action from the sidelines.
Do any others feel this way as well?
Have others actually closed trading accounts due to these concerns?
***************************
Now, the question;
What to do with my money if I choose not to trade.?
Here in Oz I can get a nice boring ‘safe’ 1 year term deposit at my local friendly bank that pays interest in $AUD of around 5.5% p.a. . . . give half of that to the government in tax and the other half to inflation and I should end up even by year’s end.
Other than that, the only other thing I can think of doing is to buy some Gold and then a Glock.
It seems to me that this is one of those points in history where ‘Return of capital’ is fast becoming more important than ‘Return on capital’
Any thoughts?
http://www.zerohedge.com/news/guest-pos ... ose-are-we
This, to my mind, is essential reading for anyone with any money in any trading account.
It is a disturbing read. Definitely for Adults Only!
The gist of the article is that no-one’s money is safe. . . . as we all now know
Segregated account means nothing. . . . as we now all know
Regulators have basically told the ‘little man’ to shove it . . . .as we now all know
It’s every man for himself. . . . as we now all know
. . . and since it is every man for himself what do you think will happen when the next ‘MF-Global-type-Firm’ runs into trouble? There will be a lighting-speed mad scramble for the exit door with the majority being trampled underfoot.
I have said in other threads that I’m watching the share price of IB with a keen eye, but so are thousands of others.
I think it’s naïve of me to think I can get out in front of others if TSHTF at any stage. ( & then you have the infamous clawback provisions to deal with even if you do manage to get out)
So, having said that, I am seriously playing with the idea of closing my IB account and taking a one year trading holiday and simply watching the action from the sidelines.
Do any others feel this way as well?
Have others actually closed trading accounts due to these concerns?
***************************
Now, the question;
What to do with my money if I choose not to trade.?
Here in Oz I can get a nice boring ‘safe’ 1 year term deposit at my local friendly bank that pays interest in $AUD of around 5.5% p.a. . . . give half of that to the government in tax and the other half to inflation and I should end up even by year’s end.
Other than that, the only other thing I can think of doing is to buy some Gold and then a Glock.
It seems to me that this is one of those points in history where ‘Return of capital’ is fast becoming more important than ‘Return on capital’
Any thoughts?