I have been trading for 3 years now and have been consistent enough to pay the bills without "touching" my original bankroll, except to put a down payment on my house (my worst trade yet!). My frustration is that my net worth, despite very good % returns, has not been growing. Like many traders, I am not compounding my returns because I am withdrawing my profits to my bank account as my "salary." Over the past 14 months I have had one month where I had to touch my money-market reserves -- in other words my profit did not cover my expenses. I have paid off all non-mortgage debt and reached the point where I am confident that my trading profits will exceed my monthly needs. Before I became a trader, I was always a "pay myself first" guy, socking away 10% of salary into my brokerage account no matter what. It's how I built up the bankroll that allowed me to pursue my trading business. I'd like to resume this habit because I believe it's a key to long-term wealth. My dilemma is what to do with that 10%? Do I just hold back 10% of monthly P&L in my trading account and trade incrementally bigger (I typically trade using a 2% risk position size)? Or do I send that 10% to a separate account for long-term holdings and dollar-cost average? On one hand, knowing that my % return in the trading account is so much higher than a typical mutual fund, it seems silly not to reinvest and try to compound. On the other hand, a key to wealth-building is maximizing UNrealized income and nothing in the trading acct gets long-term treatment. Plus, with my 2% position sizing rule, I'm not sure adding new money will do anything but LOWER my IRR%. How about it, career traders? Do you invest elsewhere for long-term growth or do you reinvest all excess capital in your business?