So far I know we need to have a plan for trading and execute the plan with discipline.
Now , should we also have a plan for fund withdrawal from broker to personal a/c ?
I am not sure …I am trying to put discipline in every aspect of trading. Could you guys please comment if you follow any systematic approach in this part.
Thanks for your time.
The only advice I can give on that matter is if you get profit try to reinvest some particular amount of it in your trading. It’ll allow you to increase your trading margin&ease up risks associated with leverage…
As a new trader it is better to reinvest the little profit made so as to increase capital for more trades. And a trade should display discipline because it is very important.
I would say reinvest until you have an amount you are comfortable trading with, then add a small margin to it. Then begin taking out your profits, if it is your idea to live off of it. Like the previous posters said, though, the more margin you have and less leverage… the better off you will be.
Gday bro. Good to see you’re still at it. How are you traveling bro? Must be doing sometning right.
So to answer your question is simple, yes. How you manage your account is just as critical as setups, entries, exits, MM etc. Are you going to deposit all your trading capital with your broker. Are you spreading risk by having multiple broker accounts. Are you going to have a capital account with a bank and deposit x amount with your broker. How are you moving money across accounts. What happens when you gain x%. What happens when you loss y%. Do you need an accountant to help manage your finances. What is my review period for this process. And so on.
The presumption by the above respondants is we are beginners with small capital and they’re probably right. My account certainly isnt enough to provide a income so reinvesting and capital growth is my goal. But we are all different and have varying goals. Having these defined lets us get on with the act of speculating. But IMO its also important to celebrate success. If I have a good week I allow myself to buy a cd. A good month take the missus out for dinner. A good quater send the missus out shoe shopping take the mistress out to dinner (terrible joke there). But its all written in my plan.
Hope that helps bro and wishing you continued success
Bob
Making profit and withdrawing your profit everytime is advisable. Well, this depends on how much you have as capital. If you have a few bucks for a start and you want to increase your capital, compounding the best way to do that. Let your profits be your capital. As you capital increases it gives you the opportunity to increase your lots size and pip value.
How many dollar could you withdraw each month from your capital??
I can withdraw about $200 for average, but for next month I will withdraw about $500 from my capital. Its really legit from my trade in Liteforex and Firstbinaryoption.
It’s the same in any business, the % of the profits you re-invest into the busines depends on the stage and the goals of the business. A 2 year old business will allocate funds and invest/ re-invest profits ([I]if they exist[/I]) differently than a 10 year old business.
One thing i will say however is, don’t keep excessive amounts of your capital with your broker(s). If for any reason there should be a dispute it could take you a long time, if ever to get it back. 2x your max acceptable loss per month is a good figure to keep with the brokers, keep the rest in the bank.
Great advice, an experienced trader once told me to grow my account using some part of profit once I start making consistent money from trading. Don’t invest from your pocket to increase your account capital.
I quite agree with that . Reinvesting is a great way to increasing your capital and it should also depends on the profit made by agreeing on a particular percentage of your profit.
Not specific to Forex but a little trick I’ve used for over 20 years when dealing with any large amounts of beer tokens(UK slang for GBP) 
When depositing funds put the money onto a Visa card and use that.Then that amount has automatic protection up to I think £250,000 and Visa’s massive legal department.No company dare argue with Visa and they will get any disputed money back.
So from time to time if you have deposited with Visa you can withdraw to it and then re-invest that amount and it gets protected in case of disputes etc.
Just a thought
i used to withdrawal 40% of my profits at the end of the month. made it feel real when i would withdrawal 3,000 into checking account and go buy something. made trading real. my 2 cents
I would work on building up capital until you reach the level you need with the average gains you make to generate the cashflow you desire.
I can agree with most on here. However I will take a percentage of profit each quater and move it to less risky investments (assuming that there are any profits). Try to set up multible income streams even if they are all small right now let them grow. Then if this month you didnt make much in forex but you still got bills, you have other streams of income to fall back on. They will all compound over time just some faster than others. The faster compunding streams of income tend to hold higher risk where as a slower compounded stream of income may take long to compound it is much less risky and therefore a more reliable source of income later down the road.
i like taking a fixed % each month of profits. keeps account growing and you keep feeling it in your REAL bank account.
when its in your trading account, it doesn’t feel as real as when you feel the cash.