Wednesday, July 31, 2013

New member asks what to do with profits?



Question: 

I am a very new member. The question occurred to me as to whether one should remit 80% of each profit made (and I'm sure there'll be many) to one's other longer-term investment portfolio, or what? 

Jackie 


REPLY: 

Excellent question!  If you do not need the profits made in trading for day to day living, then I
suggest that you put 1/2 of the profits into your long term account.  Then, just leave the remaining 1/2 of profits in your trading account.  This way you will be doing three very important things.
  1. Building the amount in your trading account for greater future trading power. 
  2. Preserving money for taxes. 
  3. Supercharging the increase of principle into your long term account.

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