Author Topic: How do you manage your trading/cash balance  (Read 1049 times)

Grog

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How do you manage your trading/cash balance
« on: April 03, 2014, 11:57:44 AM »
Hi everyone
I'm new at this, and I have just started with Vanguard ETFs (10k$). I have 1500$ from my salary every month to invest, but what's the best strategy? Should I just put them in a bank account and rebalance every year? I'm struggling in keeping my money "blocked" in a bank account instead of purchasing some stock every month. I already have a small cash reserve....
On the other hand, purchasing stocks every month lead to more transaction costs and can screw with the rebalancing strategy, right?
What's your strategy? At the beginning it matters so much rebalancing or you just buy, buy buy and don't keep anything "stuck" in a bank account for one year?

Ottawa

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Re: How do you manage your trading/cash balance
« Reply #1 on: April 03, 2014, 12:05:59 PM »
Depends on your broker - I use an online broker in Canada "Questrade" - Buying ETFs are free and unlimited!  I don't really rebalance through the traditional sell the high to buy the low.  Rather, since it costs nothing to buy, I plow money in every two weeks (payday) and buy the worst performing etf at that time.

I balance according to my lagging etf allocations (which was discussed here:http://www.mrmoneymustache.com/forum/investor-alley/show-us-your-portfolio-compostion/msg195168/#msg195168)