As of November I have set a new challenge and strategy with my options trading. I opened my IB account with $17,000. This is going to be my "Working Capital". My goal is to try to extract $500-$1000 a month of income out a month. I will have a high water mark of my original Capital of $17,000.
Withdrawl strategy: I will withdrawl 90% of all profits that I realize. So today I booked $600 in profit and have set up an ACH to withdrawl $540.
I am just trying to keep things interesting and see how well I can do.
Congratulations on your big payday but a word of caution: Watch the risk of chasing BIG returns.I know you mentioned you have that gambling gene... jus saying. ThanX for being the guinea pig but I'd hate to see you gunned down out of the fox hole jus so we can see it's all clear.
ReplyDeleteThis is really not a big pay day. As for the target, that is all it is a target. And with the high water mark and no additional capital contribution it is going to force me to evaulate risk very closely.
ReplyDeleteThere will be months that I will not be able to pull money out. And at the same time with limited capital I am not going to be able to swing for the fences all the time. I am just looking for singles and doubles. If you look at the total profit potential that I had with the positions that I put on, I left a lot on the table.
I only realized about 32.4% of the potential profit.
I guess only time will tell.
Jason, you responded in the email asking why pull it out if I don't need it. This is because I want to see what I can do with a fixed amount of capital. With limited capital I want to see how my trading is effected.
This is just an experiment.