A question clearly for people who have made some money from trading. My account size is so tiny I don’t think I should be withdrawing any of it.
When did you start withdrawing your earnings or how often do you do it? Is there like some sort of criteria as to when the best time is to do it and what % of the account?
I add to my account every month. Compounding is one route to eventual success.
When do you plan on being able to withdraw? Is there a target amount or is it more like % gains or more like just time? Aka after 10 years?
Since your trading capital is too low; so try to gather a standard trading capital 1st! I don’t like to withdraw my profit weekly, usually I do monthly basis!
What ranges are you looking at when it comes to “standard trading capital”?
Ponponwei, I just live for today as I am healthy and have all I need. FX trading keeps my brain ticking over as I enjoy the challenge.
I do realise there are many who trade solely for monetary reasons, and if I can assist in their learning, that’s a bonus.
Take care.
That’s awesome. Def happy for you and happy for us that we can ask you questions!
I think it’s a good idea to read about personal finance and business. Look at your future financial goals and decide how you want to structure it.
Perhaps add money to your demo account and look at your potential profits and see how much margin you need to make your $ amount goals. You’re in the driver seat!
Maybe you only need $1,000 in your account and anything over $1,000 each month you can withdraw as profit. Maybe you need to build your account up to $5,000. Who knows?
Have your mindset ready for when the profits come, as opposed to having the profits and you don’t know what to do with them.
When/If you are making profit, you should be withdrawing a percentage each and every week. It’s a passive means of checking how reliable your Broker’s customer service is… If withdrawal hiccups are experienced often enough on small amounts… Be prepared to take your money elsewhere.
I withdraw a percentage of profit made from the previous 5 days… It’s a system that rewards successful trading development. Also, now we are moving into a rising Interest rate cycle, it’s more beneficial (and Safer!) in your account gaining Interest than sitting in your Brokers account doing nothing.
Brokers that charge deposit and withdrawal fees should be avoided at all costs…
That’s a great point that I didn’t think about. It would be terrible to build your account up after 5 years, only to find out that when you want to withdraw, they don’t let you.
The upside is that you’re able to build your account up and you can do it again elsewhere.
I was reading my broker’s risk agreement. Apparently, if my broker loses a lot of money in the next recession, they can use MY money to settle their debts. For that reason, it’s a good idea to be cautious about how much money you keep with your broker. It may be unlikely that your broker goes belly up, but you never know.
Best not to put your lifesavings all in one place.
Right now, I have no specific plan, when I do need money then I would like use the withdraw option!
I try never to withdraw any profits! I’ll need them in the future to prop up my losing positions!!
hey if you dont withdraw profits then how will you gauge the viability of your trading system??
I know that from my annual ROR. If I draw profits , I won’t compound properly and I’ll never hit the really big money.
ooh …for me i usually withdraw my profits after every trading campaign…i divide my trades into trading campaigns of 20 trades each…one campaign usually takes about 2 weeks to 1 month…at the end of each if there’s profit i take 50% of the profit (without touching equity) and plough the other 50% back to the trading account…if the campaign results in a loss i just take my loss and get ready for the next one
Your method is good, cos the more you take out, the less you can lose and your realising your gains materially (which is the point at the end of the day). But if you really want ur account to grow, i’d take out the minimum possible.
In your scenario it is not worth it since it will likely be a big % of your capital. Take also into consideration that your bank will more than likely charge you something once that money gets into your account (mine did). So withdrawing small amounts won’t help if thats the case. I would highly recommend withdrawing from your profits when you have a larger amount, because although we are passionate about trading money is made to be spent not to be looked at. Let me tell you this story, once I funded my account, I almost doubled it in like a 3 month period. What my brain thought was to simply stack it up till i just get to quit my job, so I never withdrew any money. What ended up happening was that I had a drawdown and lost all of my profits and never got to enjoy any of all those profits made. Now, I managed to get back to where i was after the drawdown and i promised myself that i would spend some because what’s the point of seeing numbers got up and down. I would recommend to if you have a reasonable amount of money and plan on buy something, just withdraw half or 3/4 of what it’s worth so it won’t hurt your account money that much. But never forget that yes you can lose your money but like it happened to me you can also lose it without touching any of it.
It’s a great setup I must say! I guess you are a swing trader, isn’t?
Ok this is gold right here.
yes Iam
a mini swing trader…if there’s such a thing
