Podcast:

How do you pay yourself as a Forex Trader?

In this video:

00:35 – How should we pay ourselves?

01:18 – You need to reward yourself

01:50 – How much to withdraw and how often?

02:40 – The balance between needing the funds and your trading account total

03:20 – How to trade with free money – withdraw the initial deposit

04:05 – Multiple accounts and are you protected?

04:50 – Client makes consistent returns

05:19 – The 7th Birthday sale coming soon – register your interest

How do you pay yourself as a Forex trader? Let's talk about that subject and more right now.

Hi traders. It's Andrew Mitchem here, I'm the owner of the Forex Trading Coach and in today's video and podcast I want to talk about a subject that I've actually received two emails about just this week.

One's from Stan over in Australia, the other's from Alex in the UK. They both ask a similar question and they both also said, “Hey! Andrew can you just elaborate on the subject. About, how do we pay ourselves as Forex traders?”

How should we pay ourselves?

When do we withdraw funds from our trading account, how often, etc, because it's something like, both of them said, it's a subject that's not very widely covered. You really don't hear too many people talking about withdrawing funds from their account. You hear probably stories about bad brokers, about people finding it difficult to withdraw funds from their accounts and you definitely want to stay well clear of those sort of brokers, but you don't often read or see videos or hear about, good ideas about how you can withdraw your funds.

Not all your funds, but just partial withdrawal of you funds in order to pay yourself because to me it's something, to reward yourself is actually something that's really important.

You need to reward yourself

You should reward yourself as a trader. You know, you reward yourself for your good learning, for your good trading, for the time and the effort that you put into your trading and for getting good results. You have to reward yourself for that.

How do you go about it? Well I suppose it depends on why you're trading. If you are trading, let's say a relatively large account and it's something that you're doing as an investment and you can afford to take funds from that account, then definitely do so.

How much to withdraw and how often?

You really need to decide how much you're going to withdraw when, how often, etc., because you need to be really careful that you don't withdraw funds too often otherwise you start accumulating bank fees and too many bank fees, you know, you don't want to be paying the bank all the time just to try and get $100 back out of your account. That's pretty pointless.

What you need to do is maybe when you make a certain amount of money, or a certain percentage on your account, whatever it is that you're looking for, a certain amount that you need to live on, you then need to be withdrawing that as a reward for yourself and for your effort that you put into your trading.

The danger is, I suppose, if you withdraw too much or too much too often then any gains that you make, you're losing out on that higher account size and compounding of that higher account size. It really becomes a balance of why you want to withdraw that funds and how much do you need to withdraw those funds.

The balance between needing the funds and your trading account total

Sometimes I prefer to keep my account growing in terms of it's size and compound on those gains if I'm not n...