Friday, October 26, 2012

Saving for A Rainy Day

There will be times that your company runs into liquidity issues.

That is to say, you can't pay the bills.

This is where I keep my Futures handy. Every day you're allocated 100 Buy transactions with a maximum 500 Contracts per transaction. This allows you to build up a position of 50000 Contracts each day.

You have, however, unlimited Sell transactions.

Therefore, each day, I make a profit trading Futures, but I also set aside 30-40 Buys into a long term Future.  This will reduce your immediate daily profit, but it is very handy when you need to raise 10-15 million in cash quickly. 

I have used my Rainy Day fund before by cashing out a third of my positions in Aluminium for a quick 6 mill so I could complete the Daily Quest Token Exchange for 50 free Tokens, 8 Luxuries, and 15 Diligence. It is a prudent business man who not only has a Primary plan, but an Alternative, Contingency and Emergency plan.

Remember, you don't need to sell all your positions when you need cash.

Also remember that the more expensive Futures rise and fall in trends, so they may not be high when you need them to be.

Have fun, ST

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