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Tackle Today: Money Management & Capital Efficiency

August 2, 2022

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«Don’t let your money sit idle.»

Traders,

Those who focus on capital efficiency make sure their money works for them instead of sitting idle. You’re the boss; your dollars are the workers. You don’t want them sitting idly, chatting the day away. You want them to work hard to earn more dollars. Here are some best practices for capital efficiency.

First, ensure your emergency savings are earning something close to the risk-free rate, which is currently 2.34%. Shop for the best high-yield savings accounts or buy Treasury bills directly via Treasurydirect.gov

Second, keep your brokerage account cash in an ETF like BIL, which pays monthly dividends at the rate of T-bills. Currently, the fund yields 1.27%, but it should glide higher over the next few months to match the 3-month Treasuries.

Third, consider your trades’ return on time invested (ROTI). If you’re tying up a lot of capital to make the last few cents on a short options strategy like a naked put, then perhaps you should get out. You can increase your efficiency by taking profits quicker and redeploying your capital. Fourth, ditch dead money positions and put the money to work elsewhere.


Video Of The Day: Webinar Replay › What are the Financial Markets

In this webinar, Coach Matt will introduce to new traders and investors the concept of the Top Down approach to the market. Why do we analyze the indexes? How to determine your market bias? What are sectors and how to spot sector rotations?


Chart of the Day: 10-Year Yields Rolling Over ($TNX)

Chart of the Day: 10-Year Yields Rolling Over ($TNX)

The ten-year yield is down for the fourth day. And TNX now sports a completed topping pattern. Falling rates have benefited stocks and bonds, accompanying an easing in commodity prices. All are good.


Tales of a Technician

Is Volume Confirming the Rally?

Today’s video explores the idea of volume confirmation and why it does or doesn’t matter.


Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30 PM EST to discuss the markets and help you prepare for the week.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


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