Think of it as a Cash Account

Forex trading can be a source of income for you and you can produce a steady stream of paychecks coming out of your account. In order to send yourself a paycheck, you will have to think of your trading as a source of income primarily and as internment secondarily. How do you pay yourself? When? How much?

I did withdraw some capital when I needed it for car bills last year.

But my plan is simply to grow the account and expand the position sizes in proportion, until the annual profits equal a decent salary. At that point I shall start drawing out the annual profits, but on a monthly basis.

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That’s smart. Some people choose to grow account withdrawing nothing to very little, some people withdraw most or all profits then there are the rest that do both. For a beginner do you think it’s best to take profit or build the account ?

Absolutely I would say build the account.

This obviously means you need a reliable source of income to cover your living expenses, for the years (and years) when you withdraw nothing from trading. But this has positive effects. Firstly, there won’t be time for day-trading or scalping, which are things no beginner should be doing. Secondly, your trading is free from the pressure of making enough money each week to buy food and each month to pay for the rent or mortgage.

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Well said. :raised_hands:

FX trading is a profit and loss venture, NOT an income source as in a job, because traders WILL lose money on some trades as does every trader on the planet.

As for beginners, profits will be few and far between, hence they should focus on learning how not to lose money, and secondly aim to grow their account rather than blow it…


Ain’t this the truth.