Are you depositing or withdrawing money?

[CMX Markets]

If you earn an average of 20% per year with a trading account of $10,000, then in 20 years your account will already be $383,376. But what if you withdraw 50% of your profit each year? This means that you will be earning an average of 10% per year, and after 20 years your trading account will be worth $67,275.

Yes, saving and investing money can lead to maximum potential gains in the long term, but the feasibility of it depends on how you manage your money.

Yes, if you are a full-time trader, withdrawing funds from your trading account is necessary to cover your living expenses. On the other hand, if you have a separate source of income and trade only as a hobby, you don't need to regularly withdraw funds, allowing your investment to grow over time.

It is important to have a clear understanding of your personal financial goals, risk tolerance, and trading strategy before making a decision on how to manage your deposit. It's also wise to have a solid plan in place and to stick to it, rather than making impulsive decisions based on short-term market fluctuations.

Dear traders, please share your secrets for managing your deposits. Are you withdrawing your profits or accumulating them on your deposit?

 

[Stoic]

Quarterly withdrawal amounts are roughly the same, adjusted for inflation and occasional contingencies. But predicting profitability in trading for decades to come is an illusion, given any past result and its relative stability.

 

[Naddesorit]

Definetly depositing in order to withdraw more over time

 

[pashaev]

Like in any company. Monthly deductions for basic expenses as wage rate. With a good month can make a bonus. In case of an unsuccessful month, a fine.

 

[Arafx]

Sometimes I withdraw my profits and sometimes don't.

 

[Chadistrading]

I do not withdraw my profits and do not deposit too!
I am trading with 500$ for the last 2 months and right now I have 598!
But as I told you I do not change my initial deposit by adding or removing any money!

 

[Gazel]

It seems to me that all these calculations look good only on paper, until you start to trade. Once you begin this sophisticated activity, you immediately realize that the calculations you made have nothing to do with reality.
All those numbers and percentages that you wrote are not applicable in real trading, since real trading doesn’t ensure stable profit on a day to day basis. One week you can be +16%, and the next the yield is less than 10% or maybe slightly negative.
Maybe it’s worth withdrawing some percentage from the profitable week for example, or month.

 

[Sikandar Mirza]

Numbers can mesmerize us, at times. However, it is such difficult journey to cover. Personally, I always feel it is BETTER to take out the initial investment, and then work on the compounding aspect. And that ideally for me is 70-75%, at least. And 25-30% can be kept for personal use.

 

[Komondar]

Reinvesting profits for long-term growth while withdrawing as needed

 

[eleanorkim]

If you earn an average of 20% per year with a trading account of $10,000, then in 20 years your account will already be $383,376. But what if you withdraw 50% of your profit each year? This means that you will be earning an average of 10% per year, and after 20 years your trading account will be worth $67,275.

Yes, saving and investing money can lead to maximum potential gains in the long term, but the feasibility of it depends on how you manage your money.

Yes, if you are a full-time trader, withdrawing funds from your trading account is necessary to cover your living expenses. On the other hand, if you have a separate source of income and trade only as a hobby, you don't need to regularly withdraw funds, allowing your investment to grow over time.

It is important to have a clear understanding of your personal financial goals, risk tolerance, and trading strategy before making a decision on how to manage your deposit. It's also wise to have a solid plan in place and to stick to it, rather than making impulsive decisions based on short-term market fluctuations.

Dear traders, please share your secrets for managing your deposits. Are you withdrawing your profits or accumulating them on your deposit?

Haha, it's like a never-ending cycle of depositing more money when I'm losing and magically withdrawing when I'm winning!