The
 basic
 rule
 of 
thumb
 for
 2010
 when 
determining 
risk
 capital
 and
 asset 
allocation 
is 
the
 90/10
 rule.

 90%
 of
 your
 liquid
 assets 
remain 
in 
the 
safest 
investments 
such 
as;
 short 
term
 US
 Treasuries,
 hidden 
cash, 
or 
hedged 
precious
 metals 
positions,
 etc.,
 while
 the 
remaining
 10%
 is 
put 
to 
work
 as
 “trading 
capital”.



The 
10%
 that
 you 
can 
put 
at 
risk 
(risk
 capital)
 should
 have
 a 
crystal
 clear
 pre‐defined
 campaign 
that
 can
 make
multiples
 (not 
percents)
 on 
that
 money.


We’ve broken down the traditional asset classes below in order of risk levels (lowest risk first). Please refer to the article “Kiss Your Ass-et Class Goodbye.”

So now what do you do? One thing is certain, Fire your broker or financial planner and take control of your money. This simple action alone will save you the net commissions and fees you would have paid these charlatans, automatically creating a positive net return.

Ok, so now on to the remaining 10%. This is the core of what TradeSavant has to offer, the ability of subscribers to take advantage of products and services that represent the most sophisticated trading tools and platform resources for retail investors. These tools have been historically available only to institutional investors.

Please stay tuned for an announcement of these offering coming very soon!

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One Response to Asset Allocation the 90-10 Rule

  1. How much more risky is the BarBell system of 80/20 vs 90/10 trading rule..

    Who is the best house for the best exicution.. Schwab or ScotTrade???

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