What are your profits for?

[tomorton]

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

 

[WklyOptions]

v good question for traders to focus on...

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

Hi, tomorton,

Great question. Unfortunately most (>95%) traders never even make it to any degree of consistent profitability.

How many T2W traders this year alone in 2014 has had any Net Closed Profitable 3 consecutive months in a row? Or - how about some net 80% closed winners or better over the past 20 closed trades?

On average - every Closed Profitable campaign - the profits are distributed as shown:

1. Tax Man = 35%.
2. Personal savings = 20%.
3. Add back to increase trade bet size = 20% (add back 5% each over 4 new campaigns).
4. Distribute out to other passive income outlets = 25% (10% commercial property, 15% private equity). :smart:

I believe and hope that every full-time professional individual trader will take some time to reflect and carefully plan out the answers to their own objectives and needs with handling profits.

It is critical - at least for ongoing wealth building - to focus on allocating some profits toward alternative passive income sources (also diversify and reduce asset risks).

Finally - it is great to be able to go and SPEND some of the closed profits. However do not let yourself fall into BE-ing a 100% CONSUMER or spender! Don't give 100% of your hard-earned profits to others (tax, consumer spending) - at least pay yourself minimum 10% to 20% and put into a "no touch" allocation! You deserve it! :smart:

Happy Holidays,

WklyOptions

 

[tomorton]

We're off to a good start here, thanks for taking this seriously WklyOptions.

(though I'm fondly hoping more than 5% of T2W users are profitable.)

 

[teewoods]

We're off to a good start here, thanks for taking this seriously WklyOptions.

(though I'm fondly hoping more than 5% of T2W users are profitable.)

I will be surprised if more than 5% are profitable in the long run. Very few are if they trade full time.

 

[Kinell]

Profits are for wimps Rodney.

 

[drtro]

My trading profits go towards-
<25% capital gains taxes (even if I could make 100M, lucky to be a futures trader)
remainder after paying taxes is my own "bonus"
~50% living expenses
~25% long-term investments

 

[Splitlink]

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

I would spread it around my wife and family. They have given me a good life and deserve the best from me. No other ambitions, really.

 

[trade2windows]

Fulfilling my childhood Scrooge McDuck fantasy

http://www.jamesedition.com/lifesty...ique-original-swiss-bank-safe-for-sale-862784

 

[Jason101]

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

Just seen from the break "breakout vs pullback" thread, we have a very similar entry style and time frame.

I try not to think of the money and try to think of it as a big game in which I am playing against myself and that the "money" is just a way of keeping score. Pretending it does not exist I do not touch it, until it becomes a life changing amount.

 

[tomorton]

Just seen from the break "breakout vs pullback" thread, we have a very similar entry style and time frame.

I try not to think of the money and try to think of it as a big game in which I am playing against myself and that the "money" is just a way of keeping score. Pretending it does not exist I do not touch it, until it becomes a life changing amount.

I can see what you're saying, I did think we had similar approaches, swing trading and trend following don't see much debate here.

After priority No.1, which is preservation of captial so you can continue the game, I see the successful trade as the one in which you follow your own current rules set. If you make money from it, that's fine, and the trade might help corroborate your rules. If you don't make money, at least it might give you another clue towards improvements for your rules set, and the loss is just the cost of buying that extra bit of knowledge.

Most would-be traders here seem to have the ambition of moving to full-time trading. They don't seem to see 10 hours a day in front of a screen, 5 days a week, as a poor investment. I was hoping to hear of other points of view, other disciplined approaches.

 

[Jason101]

I can see what you're saying, I did think we had similar approaches, swing trading and trend following don't see much debate here.

Yes I trade only very highly trending prices, with my first exit as a swing exit and the second as a trend following trade. If something happens during the swing stage (such as the swing stage loosing momentum and taking an historically long time to complete.) then I may exit completely at the end of the swing stage.

After priority No.1, which is preservation of captial so you can continue the game, I see the successful trade as the one in which you follow your own current rules set. If you make money from it, that's fine, and the trade might help corroborate your rules. If you don't make money, at least it might give you another clue towards improvements for your rules set, and the loss is just the cost of buying that extra bit of knowledge.

Agreed but I think sometimes a trade can go against you for no real reason, other than luck of the draw, with nothing to learn from it, otherwise you could drive yourself crazy looking for non existing answers.

Most would-be traders here seem to have the ambition of moving to full-time trading. They don't seem to see 10 hours a day in front of a screen, 5 days a week, as a poor investment. I was hoping to hear of other points of view, other disciplined approaches.

I imagine to myself hoards of people in 9-5 PAY's fed up and wanting to give up there daily grind, just to find themselves chained to a desk in there own home for 10hrs a day, in a daily grind!
Hopefully you will receive other points of views soon.

 

[newspreadbetter]

New to spread betting after a couple of years doing OK buying shares tipped by a well known tipster/trader. Personally I done well (in perspective) but didnt enjoy the long waits of months to see a profit (Yes, i am impatient).

I've now got my SB capital back, and profits are split between staying in the account and making my life a little easier/more enjoyable. Moved house recently, so at present most is going into home improvements etc, and hoping with time they will help extend the house and change both cars. not after much, but if it comes then so be it

 

[itspossible]

New to spread betting after a couple of years doing OK buying shares tipped by a well known tipster/trader. Personally I done well (in perspective) but didnt enjoy the long waits of months to see a profit (Yes, i am impatient).

I've now got my SB capital back, and profits are split between staying in the account and making my life a little easier/more enjoyable. Moved house recently, so at present most is going into home improvements etc, and hoping with time they will help extend the house and change both cars. not after much, but if it comes then so be it

Hi, you are new to sb and have now got your sb profits back after losing half of you salary.Im struggling to understand and grasp this
are you are saying that you are not new to sb

 

[newspreadbetter]

Hi, you are new to sb and have now got your sb profits back after losing half of you salary.Im struggling to understand and grasp this
are you are saying that you are not new to sb

Hi
What I meant was I done relatively well in a couple of years trading shares normally, and doubled the £10k i invested (3 really good shares for me was the majority, VEC, HIK, and GNC), took my initial investment back out, and put £10k profit into spread betting, making mistakes along the way which I've learnt from. Put a last £1000 into it and now broken even, making back the £10k loss (overall loss was combination of no-stops, adding to losing trades, hanging onto losers for too long and angry trading on a bad day trying to recuperate losses - at least I'm honest).

Have just made the £11,000 back, so taking some out and will continue slowly, SB'ing and learning along the way

 

[itspossible]

im with you and good luck

 

[Fugazsy]

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

Charity by helping people in needs and a Bugatti for me.

 

[hjg]

We're all trading, we all hope to make money, many already are.

Let's suppose you're making consistent profits over months and years, big enough to not have to tie yourself to any form of employment, big enough to offer a secure and comfortable life. Say this has been down to just trading your own plan, no flukey good luck, no wild trades with excessive risks, so it ought reasonably be expected to continue.

What are you doing with that money? If you're not making that kind of money yet, what will you do with it when you are?

I will sit back and enjoy my life. We only live once and I don't want to die working.

 

[billyjean]

I will sit back and enjoy my life. We only live once and I don't want to die working.

there's no retired traders , as I much more believe we live each day and die only once , that's more optimistic for me.
I use most my money for living expense, some for education fee (got some other depend on me), few of those money for trading development purpose. well, some trading system are demand to forward tested, it may end up on losing one, but a new development is a must while market price never at flat one.
and perhaps I may end up just like the 'bugatti' guy, and live peace while doing charity for others.

 

[price777999]

If you're not making that kind of money yet, what will you do with it when you are?

Spend it on T&A

 

[hjg]

I would spread it around my wife and family. They have given me a good life and deserve the best from me. No other ambitions, really.

I feel the same way. Cheers. Some people argue there is no retirement in trade though. That traders keep trading till they die.