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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (109322)	9/14/2008 4:43:32 PM
From: mach	Read Replies (1) of 206223

Somewhat OT: diversification of brokerage accounts CC, Dabum and others, There's been some great discussion this weekend on trading strategies and styles. I too have found that the IT swing trades that have worked so well in the past few years are not doing so well in this hyper-volatile market. I've been pursuing more covered calls and shorting puts against cash (especially in my IRA) as a way to provide more income and reduce portfolio volatility, although there's been some stomach turning drops in the past 2 months. I've been lucky also over the past 10 years to build up my accounts to the point where I'm starting to focus more on producing steady growth above inflation and keeping what I have rather than trying to grow the accounts at the maximum rate which entails higher risk and larger drawdowns. With all the turmoil in the banking and financial sector, I'm now starting to worry a bit about what would happen to my brokerage accounts if the broker should fail and what steps I should take to reduce the risk of losing assets if this happens. It's my understanding that stock held in my accounts would be safe in event of a brokerage failure, but that cash/or MM holding could be lost (above some amount). I was wondering how others may have structured their accounts to mitigate against brokerage failure? Presently, I've got my trading and IRA accounts split between Etrade, Interactive brokers and TD-Ameritrade. What is the maximum account size (or cash balance) that people feel comfortable keeping at a single broker? My accounts are in the mid 6- low 7 figure range and can range from fully invested to high cash %. It would be a hassle to split them up to 100K or so/institution as I do with CDs. Are there other brokers that people feel are secure at this time? Etrade is the one that I'm most suspicious of now, but I really like their E-trade Pro trading platform, so I've been reluctant to close it down. TIA, Mark

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