I'm curious to get some other trader's take on this. I'd like to know how some of you allocate your trading profits. In my case, I work a full-time job, so I'm not dependent on my trading profits for living expenses. I usually reinvest any profits and build my capital. At some point, however, the natural urge to withdraw money comes along. I'd like to know how some of you go about spreading your trading profits. I understand some of you may have different lifestyles but it'd be interesting to hear from everyone.
I trade full time but I am not dependent on my trading profits for living ie I have a savings account. If trading full time is one of your ambitions i.e. your account has to be large enough where a few losses will not cripple it and your savings account has to be large enough that you could go a few months without profits if need be...
FT eod-flat futures trader. I am an employee of MY trading S-Corp and receive W2 wages. The trading account is swept weekly at minimum, or daily based on amounts involved and/or market conditions . Sweeping is designed to maintain a consistent trading account balance necessary for my desired instruments to be traded and trading style. I have no interest in building up my trading account balance. I build up my personal external accounts! Withdrawn funds are deposited and dispersed from the entity bank account. In the event ongoing business expense and/or wages exceed amount swept, the entity maintains a liquid money-market account, continually funded from swept amounts. FWIW, there has not been a time when 100% of wages and expenses have been taken from the cash account... I need a vacation! HTH
I keep costs low and rarely withdraw from my main trading account, mostly for occasional alternative investments. These days I am long on ideas and short on available capital, despite decent financing and returns. "IB wouldn't have given me 6:1 leverage if they didn't want me to use it. "
I have withdrawn nothing. Here are my thoughts. I got into the markets when bull was strong, up over 100% at one point. Somewhere in my reading I came across the idea of taking some money off the table, getting something nice. I considered a motorcycle but never did it. I finished that year in the red, gave oh so much back. Having a motorbike after that would have been nice. I would not fault anyone for taking some money off the table to do something nice. Buying something of value would be good. Real estate good. My spouse likes the idea of buying a farm every year like that Cook guy in the midwest talked about in wizards. My hyper kinetic trading slowed down, I leaned into the pain and come out the other side. I did not throw good money after bad. My capitol has grown to the point of considering taking some money off the table again. After a few more hundred K, I think I will. My only debate is Model S or X?
%%%%%%%%%%%%%%%%%%% My farms + good guns were/are a better trade/invest than my motorcycles. Motorcycles were fun + sometimes my knees turned ''red'' like hamburger,.Theyre not as stable as 4 wheels; but get great gas milage My mostly [unprofitable ] short term trading, i consider part of my education; keep good records. That way, like Jack Schwager-M Marcus, you will know when farm products trading is profitable + CA real estate buys/sells lost 10 times in a row .....
I donât want to brag about my income or anything. One thing I can say for sure is I would never do trading as a full time job. I do trading as my part time job whereas I get a healthy income from that every now and then. I donât want to invest huge amount of money and be full time in it