Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Know Yourself, Know Your Setup, by Boris Schlossberg 9 replies

Trader Psychology - Understanding Yourself 29 replies

Why kid yourself? 3 replies

Empower Yourself, by Dr. Van K Tharp 0 replies

Expose Yourself! A Powerful Technique for Breaking Emotional Patterns in Trading 0 replies

Paying Yourself

  • Post #1
  • Quote
  • First Post: Jun 6, 2004 10:16pm Jun 6, 2004 10:16pm
Fellow traders

As many of you trade for a living or trade part-time, how do you pay yourself? For example, take out say 10% of profits from the week/month.
What if you made a loss for a month, would u take out any money for yourself?
I have been trying to leave half of my monthly profits in my accounts and withdraw the other half. I do this in a net way so that means overall half comes out not necessarily half from each account. That way if one of the accounts isn't doing well (I run at least one account per system, as it's easier for me that way), the others will compensate so I get to have my steady income. Hope that helps.
Quoting jambotrader
I have been trying to leave half of my monthly profits in my accounts and withdraw the other half. I do this in a net way so that means overall half comes out not necessarily half from each account. That way if one of the accounts isn't doing well (I run at least one account per system, as it's easier for me that way), the others will compensate so I get to have my steady income. Hope that helps.
Thanks for the reply
when i first started trading, i only took money out when i absolutely needed it. when my account grew, i started paying myslef on a quarterly basis, because i found that monthly profits can flucuate so much that you end up taking too much money in the good months.

ss, if you are able to take anything out, pat yourself on the back
Relax and be happy.
When I decided to become a full-time trader, I made sure that I won't need any money to be withdrawn from my accounts for at least the next 2 years. This is mainly to ensure that compounding is on track, and to ensure that I am not going to be affected financially if I am totally wiped out.

Trading is a business, and when you start a new business, you want to keep yourself as safe as possible and be able to pay your bills regularly without pulling money out of your capital.

However, in my plan, I discounted personal withdrawals for the coming 20 years and increased the target percentage return per capital to adjust for these personal expenses.

Thanks,

Nader
Quoting narafa
When I decided to become a full-time trader, I made sure that I won't need any money to be withdrawn from my accounts for at least the next 2 years.
this is really the best method man, because then you dont have to mess with your "stake", and you can take full advantage of the compounding as you said. problem is, sometimes its really hard to save two years of reserves
Relax and be happy.
Quoting merlin
this is really the best method man, because then you dont have to mess with your "stake", and you can take full advantage of the compounding as you said. problem is, sometimes its really hard to save two years of reserves
I agree with you Merlin, but take into consideration that I now need less reserves than before. I don't spend on gas for my car now as I used to while I was working, I don't eat fast food anymore, My mobile monthly bill decreased dramatically, my car maintenance does not eat money as it used to, I don't have to buy 3 or 4 full suits for my work every now and then, just simple and nice cloths. You know many over heads were just eliminated, so I think it's not that hard to save 2 years of reserves, but for some, it might be hard, specially those who are not used to saving and always buying using their credit cards I don't have a credit card as I think it's one of the worst double edge weapons these days.

Thanks,

Nader
  • Post #8
  • Quote
  • Last Post: May 8, 2019 6:45am May 8, 2019 6:45am
I pay myself 100%.
0 traders viewing now