Clearly you know far more millionaire retail traders than I do, in fact I don't know any who have breached the million mark as of yet. However, I find that statement very hard to digest - and this is why....
Assume you have profits of $1M in liquid cash from trading, from this you deposit $50k into you current retail account which is 5%, as you said above.
Lets now assume these 'successful millionaire traders' that you know of manage to make 5% profit per month of the account balance value which has been deposited; (very very optimistic, of course and likely to be much less - which gives this argument even more legs), that equates to monthly profit of $2,500 (5% of $50,000).
But the trader has $1M - so the $2,500 monthly profit is equal to 0.25% of the total account balance of $1M [the choice that the trader has made to only deposit $50k into his/her trading account is irrelevant]
To put this into prospective, a UK savings Bank account can offer perhaps 3% annual interest; this is also equal to the same 0.25% a month flat rate growth.
So this really doesn't make any sense, at all - a millionaire trader not beating the banks, and if so then on a small margin at best and with considerably more risk?
There is a well known concept, which I'm sure you have heard of?
"money makes money"
So why on earth would a successful trader who has $1M only put $50K to work and leave the remaining $950k doing absolutely nothing? I certainly don't think it's because of this reason below, do you?
That is the talk of an amateur retail trader - nothing else. I'd like to hope that since he/she has already become a millionaire from trading that they would have the self-control and emotional aspects of trading under control, don't you? Unless of course they are blowing smoke up your own arse, which is the more likely answer.
Admin - before you remove
When someone is "blowing smoke up your arse" today, it is a figure of speech that means that one person is complimenting another, insincerely most of the time, in order to inflate the ego of the individual being flattered. Back in the late 1700s, however, doctors literally blew smoke up people's rectums.