withdrawing from your broker account

New comment
 

hi there guys,

i was reading few days ago about an interesting topic on withdrawing money from your broker, a successful trader said that he keeps withdrawing money on daily basis and then funding back his account for safety purposes.

now my question is: why?

i made some researches on internet but did not find anything about it, 

you know guys whats the meaning on doing so?

cheers. 

 
mantarochen:

hi there guys,

i was reading few days ago about an interesting topic on withdrawing money from your broker, a successful trader said that he keeps withdrawing money on daily basis and then funding back his account for safety purposes.

now my question is: why?

i made some researches on internet but did not find anything about it, 

you know guys whats the meaning on doing so?

cheers. 


Whats the Point to withdraw profits and then funding it back........hillarious and that trader gotta be a joke and probably not that succsessful in the end after all.
 
Kenneth Parling:

Whats the Point to withdraw profits and then funding it back........hillarious and that trader gotta be a joke and probably not that succsessful in the end after all.
This technique is used to manipulate signal statistics. But for safety purpose the only reason i can think of is to compensate for negative equity draw down in order to avoid a stop out.
 
mantarochen:

hi there guys,

i was reading few days ago about an interesting topic on withdrawing money from your broker, a successful trader said that he keeps withdrawing money on daily basis and then funding back his account for safety purposes.

now my question is: why?

i made some researches on internet but did not find anything about it, 

you know guys whats the meaning on doing so?

cheers. 

He think he can beat the system, his probably not a good trader if he keep on funding back his own account. it mean he make a lot of mistakes and he try to save his account, he take his trade like a gambler that is the best answer to your question.
 
mantarochen:

hi there guys,

i was reading few days ago about an interesting topic on withdrawing money from your broker, a successful trader said that he keeps withdrawing money on daily basis and then funding back his account for safety purposes.

now my question is: why?

i made some researches on internet but did not find anything about it, 

you know guys whats the meaning on doing so?

cheers. 


Withdrawing profits and keep funding back, i don't understand?

 

sorry but i explained bad my self probably, this trader was encouraging all traders to do so, he was recommending to do it but did not explain why? this is something i saw many times over and over on traders account but quite never understood why.

i think its something to avoid frozen accounts? 

read here on the trader description:

 
The reason is simple. When you have an open position, your WHOLE deposit is at risk when margin trading. You can set a stop loss, but stop losses are not guaranteed. In some unfortunate event, your total account can be gone. Therefor what is not in your account is not affected. Hence do not build a 100.000 account, withdraw anything you do not need in order to trade. 
 
Enrique Dangeroux:
The reason is simple. When you have an open position, your WHOLE deposit is at risk when margin trading. You can set a stop loss, but stop losses are not guaranteed. In some unfortunate event, your total account can be gone. Therefor what is not in your account is not affected. Hence do not build a 100.000 account, withdraw anything you do not need in order to trade. 
   thanks, now it's more clear ;)
 

Another thing to keep in mind, and what is also written in your screenshot.

If the broker goes bust you might have a problem if the broker is not covered by a Compensation Scheme. For example FCA regulated brokers are reqruired to protect their client funds under the FSCS up to 50k GBP. This means also that if a FCA broker goes bust and your deposit is over 50k, you can kiss the surplus goodbye. Do not put all your eggs in one basket. Spread the risk.

New comment
Reason: