This question is one I have been pondering for some time, and I realise that it is highly subjective to each individual. However in this strange and impoderable profession that we find ourselves in I thought it important to ask those of you out there who actually make a living trading this question.
When you are trading full-time how and when do you enjoy the fruits of your labour? The question being, what percentage of their trading account would they be using to live on whilst maintaining a compounding position so that over time.
To give you an example, if a trader had 20k starting off full-time and living modestly. Able to make around 10% per month, what should he leave i the account to compound up. I mean if your need 2K a month to keep going, congratulations you've just got yourself another job which defeats the purpose we choose to trade in the first place. Yes I will accept that their is a time freedom element, which indeed is priceless. However if your not increasing your net worth your not going to go anywhere fast are you?
As I said it is a personal preference but I would be interested to see what the more experienced hands manage this idea and apply it in their own lives.
Yours with Modesty
Aidymac
When you are trading full-time how and when do you enjoy the fruits of your labour? The question being, what percentage of their trading account would they be using to live on whilst maintaining a compounding position so that over time.
To give you an example, if a trader had 20k starting off full-time and living modestly. Able to make around 10% per month, what should he leave i the account to compound up. I mean if your need 2K a month to keep going, congratulations you've just got yourself another job which defeats the purpose we choose to trade in the first place. Yes I will accept that their is a time freedom element, which indeed is priceless. However if your not increasing your net worth your not going to go anywhere fast are you?
As I said it is a personal preference but I would be interested to see what the more experienced hands manage this idea and apply it in their own lives.
Yours with Modesty
Aidymac
