When Should a Trader Withdraw Profits?

Yeah, good question, this is a question that I got asked recently at the website ( via email ) and thought I would take a moment to answer in a video as well as on this topic page. First of all, I will note that the answer to this question is based on my personal opinion of when to withdraw money from a trading account and that if you prefer another way that is fine.

Now, back to the question.

Some traders prefer withdrawing all their profits on a regular basis and some prefer building their account. Withdrawing all profits is one way a trader can do it, especially if their trading account is quite large, in that instance a trader is taking out profits for income. Leaving profits in the trading account is another way and building the account, however, most of the time this relates to the type of trader that has a smaller trading account. As their account is small they are focusing on building account to get to a larger size in order to be able to take regular profits like the first type mentioned.

What I suggest is a balance between the two, withdrawing regular profits, such as 50% to 60% on a regular basis ( weekly or monthly ) and leaving the remaining 50% to 40% to allow for some building of account as well as accommodating for some future losses while following a trading method long term.

 
Above – Video on when should a trader withdraw profits from their trading account

when should a trader withdraw profits

The reason I suggest taking regular profits is because it is good for psychology when following a trading process long term. Also, it helps a trader stay positive and deal with losses better when they do happen.

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.

Comments

  1. Ali Senejani says:

    Great video, thank you Timon.

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