What do you guys do/recommend?
Short term happiness or long term benefits?
Short term happiness or long term benefits?
Withdraw every month or leave it to grow?
- Thread starter metatrader54
- Start date
Even if you don't need the money, it's good to have diversification. If your entire net worth is in your trading account, that's probably okay if your net worth is $10K, but less okay if your net worth is $10 million. At some point between those two points you should have been withdrawing, and putting the money into other things.
To answer your question I fix the notional capital at risk in my trading account at a maximum of $400K (less if I'm in a drawdown). The account normally has a bit more than that in it, but if the balance gets too big then I withdraw some and add it to my long only investments (I don't need the trading profits for income). That's effectively a 100% withdrawal of profits, though in occasional lumps rather than in a very systematic way.
If I was still building my wealth and didn't need the trading profits for income, I'd probably do something like withdraw half my profits and leave the rest in.
GAT
To answer your question I fix the notional capital at risk in my trading account at a maximum of $400K (less if I'm in a drawdown). The account normally has a bit more than that in it, but if the balance gets too big then I withdraw some and add it to my long only investments (I don't need the trading profits for income). That's effectively a 100% withdrawal of profits, though in occasional lumps rather than in a very systematic way.
If I was still building my wealth and didn't need the trading profits for income, I'd probably do something like withdraw half my profits and leave the rest in.
GAT
If you do not need money for income to pay bills, support your living expenses or whatever...let it grow but pay yourself a small salary even if you do not need it and do not trade with your profits until the capital becomes substantial via whatever that may be to you.
This will allow you to trail yourself psychologically to treat your trading as a business while still growing it.
wrbtrader
Depends on your age. My 80 year old parents have bonds and dividend stocks where they use the monthly income for their living expenses. But if you are a younger person in your wealth accumulation stage, why not use the power of compounding in your favor? Let your day job pay for the day to day expenses.
Limit myself to monthly lol
I'll be withdrawing all profits when account is at the size required, 50% for me, 50% for rainy day fund until thats enough, then 100% for me.
Not there yet but close, been close for a few years, hopefully closer.
