Taking money from account

[DashRiprock]

hi everyone

everywhere on trading websites is everyone going "money management"and "risk 1% of account" and blah blah blah... but never do i read about how people are taking money from there trading account!

same $ amount each month? or when it runs out?
same % of profits each month? or from since last tame you took money out?
mix of both like hedge funds?
or re-set account to same level?

what about putting money back IN to account????

all is "manage risks" but nowhere is "how to manage profits" :-0

 

[Hotch]

I take out what I want when I want.

 

[Masquerade]

If you take it out, how are you supposed to lose it? :|

 

[DashRiprock]

If you take it out, how are you supposed to lose it? :|

but rlly i think its better to have rules for taking your profits out of your account but noone talks about it in trading websites

maybe noone has any profits in the begginning? :whistling

 

[HawkTrader]

If you're trading for a living, perhaps you want to take out a $ amount each month to pay for bills, and if you end up spending your entire capital, then you quit trading.

Or you can take a set percentage, as you've said. Perhaps 25% of your weekly profits if you're a short term day trader. I personally take 15% every month and let the rest grow. There are no set rules, do what is best for your situation (Trading for a living, trading while on a side job, scalping, position trading, etc...)

 

[Masquerade]

I don't know. I had an account which I was trying to grow. I was up close to 100% and didn't take money out because I was trying to grow it. Needless to say, I had a bad week or so and lost a sizeable chunk of it. But if you're trying to build an account then you can't really take money out. If it's your living and you need the money then you have to take it out but it's still not advisable if you can avoid it.

 

[montmorencyt2w]

I think the OP raises a very important point that should actually be considered as part of your money management. Some people (so I have read here; I don't know them personally), keep one account for their regular living income needs, and another to grow their capital.

Although it's a very individual thing, I suspect there are some overall guidelines to be given from a general money management point of view, e.g. what is the highest percentage you can regularly draw from a pot that you are actually trying to grow as capital. I have seen some recommended numbers in the past, but I would not like to try to quote them from memory.

 

[Hoggums]

Withdrawing money can destroy compounding on the account so if you are looking to grow capital then my advice is to withdraw as little as possible.

Below is an example of an account that grows by 20% a year, after the year the own withdraws a percentage of the account balance (top row). See how withdrawing only 5% of the account per year destroys the effect of compounding over 20 years.

 

[wackypete2]

hi everyone

everywhere on trading websites is everyone going "money management"and "risk 1% of account" and blah blah blah... but never do i read about how people are taking money from there trading account!

same $ amount each month? or when it runs out?
same % of profits each month? or from since last tame you took money out?
mix of both like hedge funds?
or re-set account to same level?

what about putting money back IN to account????

all is "manage risks" but nowhere is "how to manage profits" :-0

95% of traders wouldn't know how to answer that. Most traders have never taken money out of their accounts until whatever is left at the very end. On the other hand how many times have we seen if you make xx% and compound it over so many years you'll be a gazillionare? Hard to believe anyone who is making money hand over foot would never remove any of it.

For my own accounts I remove money whenever I feel the need or if I have a very nice run of wins. Most, but not all of it is put into a retirement account. The rest is fun money

Peter

 

[wackypete2]

crossed posts with Hoggums!

Peter

 

[DashRiprock]

for me rules about taking money from account should be included in part of money management

yes its ok to say about compounding, and its right that withrawals will slow compunding down, but for me taking money from account is important part of trading profitably. if you are trading small amounts for hobby then i guess i can see the argument but when you have bigger accounts taking money out becomes more important, both from a mind point of view and from a money point of view.

my 2 cents anyway but never on forums do i see people talking about this

 

[arabianights]

I eventually hit on a solution for this... I have two accounts, one I live off and the other I compound with. They do the same trades more or less, apart from rounding errors... hoever the compounding account is about a month away from overtaking the living off account at which point it'll start increasing size. I don't really do enough size in either tbh.

I have 3 limits that I have to keep the live off account on before withdrawing money: a hard limit, another limit where I'm on a lower profit split below, and a self imposed limit which is higher than that (roughly a pretty bad fortnight away).

 

[DashRiprock]

I eventually hit on a solution for this... I have two accounts, one I live off and the other I compound with. They do the same trades more or less, apart from rounding errors... hoever the compounding account is about a month away from overtaking the living off account at which point it'll start increasing size. I don't really do enough size in either tbh.

I have 3 limits that I have to keep the live off account on before withdrawing money: a hard limit, another limit where I'm on a lower profit split below, and a self imposed limit which is higher than that (roughly a pretty bad fortnight away).

 

[DashRiprock]

i only have one proper account but my way is this:

if i am allowed to take money out i take a fixed money amount. some of this i put safe and other part i spend. if im not allowed to take money out i spend the money that i saved until i can take some out of account again.

i dont take money out every month but i only ask when the money that i took out from last time (minus what i saved) is running out.

 

[DashRiprock]

i only have one proper account but my way is this:

if i am allowed to take money out i take a fixed money amount. some of this i put safe and other part i spend. if im not allowed to take money out i spend the money that i saved until i can take some out of account again.

i dont take money out every month but i only ask when the money that i took out from last time (minus what i saved) is running out.

also when my account is the right size for my trading i will take all profits out and reset it to same number every month and save a big chunk of it.

 

[trade321]

Hi, good thread/good question, agree with what some have said that it is mostly a subject never looked at
I personally made a decision to take 50% of any given profit over a month out of accounts, the reason for this is, this is what i spend prob 90% of my working/income time doing and if i cant get the use of/enjoy any benefits from it then i cant see much point and would probably become very detached from it and/or more likely to give it away.

Thats me anyway. Good thread.

 

[DashRiprock]

Hi, good thread/good question, agree with what some have said that it is mostly a subject never looked at
I personally made a decision to take 50% of any given profit over a month out of accounts, the reason for this is, this is what i spend prob 90% of my working/income time doing and if i cant get the use of/enjoy any benefits from it then i cant see much point and would probably become very detached from it and/or more likely to give it away.

Thats me anyway. Good thread.

i also forgot one thing is that if i have a really good time i allow myself a little "bonus" that i take out. this is part saved part... err wasted LOL!

 

[brettus]

i also forgot one thing is that if i have a really good time i allow myself a little "bonus" that i take out. this is part saved part... err wasted LOL!

Personally i add money.

 

[eminiglobex]

good question. from a motivational point of view you have to take some out as pay imo. 50% out, 50% to compound works well

 

[eminiglobex]

Personally i add money.

ha ha