How much should we withdraw?

Hi everyone) Assume you are a consistently profitable trader who is recording profits every day/week/month then how much and how often should you withdraw your profit money?
If we withdraw more profits then we can,t risk bigger amounts and hence it also reduces our future profit potential and if we don,t withdraw then it,s dangerous to withdraw a big amount rarely or once from your broker,also it,s a bit demotivating.
Consistent profitable traders here please tell me about your withdrawal strategy.
Thanks)

There's no 'right' answer here. You need to find a balance between account growth and balancing your expenses. Some people also prefer to put some gains away into a rainy day fund to refund their account when in drawdown and/or for general (emergency) savings. The best you can do is to play around with the figures in Excel or some other spreadsheet software. That way you will be able to compare what the effects of different size withdrawals are on your bottom line in the long term. You can limit the withdrawals to a set amount or withdraw only those funds that exceed some predetermined dollar amount gained in a week etc. ... so numerous possibilities out there for you. Good luck with Excel!

If this is your main job or source of income the method I would use would be to work out how many pips I should make a week to LIVE on, then take these out of my account, any extra I make I would save in my account to increase lot sizes long term.

Otherwise if I had a day job, I would use that money for living on and not touch any of the profits from trading and use it to increase lot sizes.

fix an amount in your account.

for example my limit is 30k anything goes above it I withdraw.

There will come a point in time where your trade size will be based on your ability to liquidate your position at the price you choose. Your broker should provide you information as to how many lots you can exit and get the same price for each lot.

You may consider staying under that amount of lots though. For instance, let's say your business plan is not to exceed 10 lots on any one trade. So, in order to continue to profit beyond 10 lots you need to trade more currency pairs. How many pairs can you effectively trade at the same time? 10? 20?

Once you decide on your full trading capabilities per your business plan, and you reach your limit, then your account size will match your trading needs. Any money beyond what you need to maximize your business from day to day can be withdrawn and not affect your future trades.

Of course, this implies trading is a business to you. If you are trading recreationally, then set yourself a daily, weekly, or monthly profit target. Let's say you are happy with $500 a day. So anything over $500 can be withdrawn.

If you live in America though, remember Obama wants about 27% of your withdrawal, as well as whatever your state wants. When I want to withdraw money, I have to double the amount I need. 33% goes to Obama, 10% to God, 7% to savings, and then I get to spend the last 50%.

Just a few ideas. Hope this helps

I withdraw it every week. After all the goal is to make money. Instead of pumping up an account, I find it easier to open a new one.

Jesus christ I'm glad I don't live in America now.......

Maximum Growth = No Withdrawals

Personally, I did it on monthly, because I dont really trust some retail brokers even though my capital are not involve in it.

If you have your capital in, its good to take some money out consistently if you are in profit, you wont know when there are some platform issue, withdrawing issue, new regulations a broker wanna implement. Hard cash on hand are safer.

I withdraw every month, 50% of gains and leave the others 50% to build more trading capital.

I think that it will be clever to withdrawl whenever you have possibility.
Just kidding - take 50-50...maybe it's smartest choise after you return your initial deposit

Maybe next one is the right answer
http://www.forexfactory.com/showthread.php?t=400750
Mingary
"No one ever withdraw any money from a forex account.
Brokers have bills to pay they need all the money you can send them."

But I forgot something....heloo to all of you traders, I'm a newbie here on this forum, and on forex I have slight experience
Good luck to all of you

Personally, I withdraw the less of 50% of net earnings per month or my predetermined 'monthly expenses' and accumulate the majority as working capital. This allows me to increase my trading size gradually while allowing the accumulation to serve as buffer in unforeseen periods of drawdown. I don't withdraw unless I make enough money for the month. I also pay myself a bonus at the end of each year using this formula: 30% x (accumulated capital - initial capital injection).

Ultimately, you must treat trading like your own business. Withdrawal should be treated like a conditional payout subject to your performance.

Obama is over 3 times more godly than God. :nerd:

Yup i am glad too i don,t live in that tax heaven country
Here in pakistan incomes from the internet are completely exempted from tax.

Yeah, you are all lucky to get tax breaks. I am seriously considering giving up my citizenship. It is even worse than I described. Most countries do not even tax Forex earnings, but here, it is higher than stocks.

America is also the only country that taxes you no matter where you live in the world. If you work in another country you are allowed to make tax free money to a certain amount, and then you have to pay tax on everything over it, plus any taxes owed to the country you are working in. Even in death, most states will take 90% of your income and property you leave behind.

To think that America was founded because of English over taxation and now ... Is it any wonder most of our businesses are in China and Mexico?

Truer words have never been spoken. I moving out of this country when I have enough money. Other parts of the world offer better standard of living and more for the taxes we pay, me and my wife pay taxes every year and for the likes of me, I don't even know what they go to. Other countries get more for the taxes that they pay. The American dream is dead.

Thanks for the help regarding my thread topic) Well seriously that much tax is outrageous and unjustified .And there is no sense in taxing someones earnings from the internet,you can only tax someone if his or her source of income comes from that country.
Here in pakistan if i withdraw $1000 from my forex trading account means it,s all mine and i won,t end up taking $500 profit.
Well i think that,s why american government is a way richer than pakistan because they tax their citizens too much.
Also even pakistanis who work in pakistan and their source of income is based in pakistan don,t pay that much taxes.
Man you are almost sacrificing 50% of your hard work.If you make your living only from the online internet based earnings then i advise you to give up your citizen ship and move you ass to some other country.