Certainly this discussion is for those who already have a proven profitable system and continuous stable performance, and now advancing to the next step: growing their account while enjoying their profit for themselves.
In 2022 we have tons of prop firm companies and you could be trading 3-4 accounts simultaneously.
But for the sake of this discussion, let's say you only have your own personal account.
Any deposit made from withdrawing money from funded account, we'll say that money is from your day job income.
Here's the scenario:
Your initial balance is $10,000.
After months of backtesting and forward testing, you have now found your own profitable trading system, and slowly but sure, your equity graph starting to show a positive trend.
All this time, you only thought about the trading system and how to manage your mindset.
You cared nothing about growing the account (how can you think about that when you're always in the minus??).
But now, you realized it's time to shift your mind from creating a trading and psychological system, to creating a system to compound your account while paying yourself.
The discussion:
How do you find balance between growing/compounding your account, and enjoying your life by withdrawing the profit? What do you think is the sweet spot?
Do you wait until your account reaches xx dollar and withdrawing xx% of the profit while leaving the rest to compound?
Do you compound your trading size immediately when there is profit, or do you wait until it reaches a certain amount first?
I think this is also an important aspect within trading that is not discussed enough.
Let's discuss it in a friendly, respect-each-other manner.
Have a safe trading, people.
In 2022 we have tons of prop firm companies and you could be trading 3-4 accounts simultaneously.
But for the sake of this discussion, let's say you only have your own personal account.
Any deposit made from withdrawing money from funded account, we'll say that money is from your day job income.
Here's the scenario:
Your initial balance is $10,000.
After months of backtesting and forward testing, you have now found your own profitable trading system, and slowly but sure, your equity graph starting to show a positive trend.
All this time, you only thought about the trading system and how to manage your mindset.
You cared nothing about growing the account (how can you think about that when you're always in the minus??).
But now, you realized it's time to shift your mind from creating a trading and psychological system, to creating a system to compound your account while paying yourself.
Focus on compounding your account without withdrawing anything = you miss life's joy of enjoying your own profit.
Withdraw all the profit regularly to pay your bills or to enjoy yourself a nice weekend trip = your account won't grow.
The discussion:
How do you find balance between growing/compounding your account, and enjoying your life by withdrawing the profit? What do you think is the sweet spot?
Do you wait until your account reaches xx dollar and withdrawing xx% of the profit while leaving the rest to compound?
Do you compound your trading size immediately when there is profit, or do you wait until it reaches a certain amount first?
I think this is also an important aspect within trading that is not discussed enough.
Let's discuss it in a friendly, respect-each-other manner.
Have a safe trading, people.