Do you trade for an income or for a compound effect?

I swing trade stocks.

I am well capitalized

I fund my lifestyle with my trading profits

My capital increases each year

So yes I'm doing both.

 

Mixture, I trade to increase account and therefore profits each month, but I also take a ever increasing wage, atleast thats the plan, made bugger all in December even down $500, 2K last few days of November and took 1K out.

Both is best, but it's a hard hard game to master!! I'm close and have been for years, but might need a few more, might not live long enough to master, we'll see.

 

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Both. Sure can do both.
And dividends are considered income /but not not auto invested in my case.

 

For me, I trade for compounding effects.

 

I just checked a few trades I did.

I made the calculation for:

• not compounded
• compounded

Not compounded I would have made $4,163.72.
Compounded I made with exactly the same trades $31,485.85.

All depends of course of:

• the leverage you use
• the frequency you trade
• the compounding you use
• what you trade. I daytrade ES intraday, so high leverage, high frequency and compounding to exploit at max the power of compounding.

Compounding has of course also more risk, but that risk can be even eliminated almost completely if you succeed to trade profitable with compounding for a few trades. So only at the start there is a big risk, after that the risk of wiping out completely can be close to zero if you use the correct money management.

Essential is that your system should have a clear positive expectancy.

With compounding you can also start with a much smaller capital and still beat in short time the higher capitalized not compounding version in capitalization.

 

I’ve seen and known traders who consider trading as their only source of income. Some prefer part time trading as well. Totally depends on the trader and why they are trading.

 

Well, depends from trader to trader. However, I am doing it for earning income. Objectives of each one here can be different.

 

I would prefer compounding as this will give more leverage to my investments as compared to regular income. For regular income I am earning from my work and trade in forex to bag some profits.

 

I get my regular income from my 9-5 job while I trade in the forex market for compound return on my investments.

 

I usually trade for the income as trading is my daily bread source. I had never thought that I would leave my full time job to get into trading.