Cash vs stock ratio

Hi guys
Happy Friday everyone

Can you let me know how big is free cash in your portfolio. Is it 1%, 5%, 10% more? Or maybe you invest every penny. Also let me know rationale behind that. Interested to see other strategies :smiley:

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“portfolio” is rather an uncertain concept, if you mean “investing account” I’m gonno guess this is close to 0 cash for most people including me.

If you mean overall wealth management:
I usually keep £1000 as cash and 3 months expenses as an emergency cash with fairly liquid very low interest accounts. For disaster recovery I hold some gold that’ll cover my expenses for about a year. I use around 25-40K for high frequency and option trading annually, but my expectation is never to touch that money unless it grows over 40K (withdraw over 40, top up under 25)

Rest goes to my ISA (max 20K), SIPP (max 24K) annually and 100% invested in stocks and shares, no bonds. If it has been a good year remaining money goes to an invest account, and held in a fairly stable ETF.

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Like @kali, I don’t allocate any of my portfolio to cash. I have a £1,000 ‘float’ in an easy access account that I can dip into and replenish month-to-month. I also have a healthy sum in premium bonds for emergencies. I used to set 5-10% of my portfolio aside in cash for buying opportunities but I did the maths on it once and the ‘time in the market’ adage proved true.

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I have 0% cash in my portfolio as I would rather cash sit in my bank, opposed to in 212.

Should a situation arise where I wish to invest outside of my monthly regular investment, then I’ll make a deposit.

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I have 0% free cash as I invest everything above my emergency/bills/holiday/beer funds.

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I guess my question is bifold -

  1. How much money after bills etc do you invest (T212 or any other form). How much money do you keep in case of emergency etc
  2. Do you keep any capital on T212 just in case you were after a quick purchase : i. e. Market crashing, 30% off sale in minutes or some specific stock being pumped up and you need quick cash. Some forms of T212 deposits take hours/days so before you top up your balnce it might be to late, train is gone kind of thing.
    Does it make sense?

I have zero cash in 212 and have reached the ISA limit.

I don’t wait for crashes or pullbacks.

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I’m usually fully invested, but I have £500 sitting loose waiting for a good opportunity and about £1500 blocked for a limit buy in case it triggered so I can re-enter another stock at a good discount.

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My 212 isa’s 45 % cash at the minute due to taking profit from one of my stocks taking off recently. Looking to invest it fairly soon but struggling to commit it at the minute.

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I play very much on the edge which is only because I’ve learnt the hard way to make sure I have some sort of “back-up”.

Currently, my CFD is at the 40% mark, but I’d only worry if I reached around 30%.

Why? If I take my money out = losses.
If I open a position opposite to what is causing me pain e.g. Buys on the S&P5000 while my Sells make losses, I could time it wrong, the index falls and I’m screwed.

It’s all a matter of what your strategy is.

I trade high value tech stocks at a high risk, aware of the risks and therefore know that these instruments are quite volatile so it’s likely that I’ll have to just stick to my guts and wait it out.

I’m all stock no cash

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