When to Make Withdrawals

Discussion in 'Professional Trading' started by milktruck, Oct 14, 2009.

  1. Just curious how you guys do this. Do you set a fixed dollar amount? Do you withdraw on fridays or end of month? When did you start?

    Ive just increased my size to the point where I am comfortable making money for side income as opposed to only increasing trading capital. Maybe go 50/50 since I would like to eventually amass enough to make a full time income but Id also like to start withdrawing a goal of a couple hundred bucks a week.

    My thoughts are that by keeping my trading account relatively lean I will stay even better disciplined (never have that "cushion" for the punt that doesnt follow the plan) and give me a good dollar/tick goal that I can attain frequently. The never ending "build capital" phase is maddening in its delayed gratification and far off goal of having "enough". I only kinda sorta need the money but Id rather have it sitting in my savings than with my broker and take my stake off the table.

    Any thoughts/comments/cheap shots?
     
  2. I am not yet at a point to consider making withdrawals -- I am still building. But, if I was, I would probably make it a fixed percentage (say 25% or even 50%) of my last month's net.

    I would do it on the same day -- say the 5th -- of every month and keep the % constant but set a minimum profit number -- say 500 or $1,000 -- or there would be no distribution that month. No point in taking 25% of $142 ... lol.

    I would also need to make up for any losing months before resuming distributions. Growing the stake is important.


    It is a nice milestone you're at even if the monthly distribution is small.

    Congratulations ... sounds like you should do it.