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Brian,
> How do those of you who trade for a living manage your money from month to
> month? Do you keep the money you make from the markets in Tbills and then
> draw off of that which you need to live on each month. Or do you just have
> your broker cut you check at the end of each month and keep the rest for
> trading?
At the end of the month mark to the market and take out the profit. Place it in the
investment vehicle of your choice (T-Bills, stock, mutuals, etc.). When that grows
to 50% of your account size, allocate half of it to your trading account. Gives a
fresh start to the next month and grows your trading account. Also allows you to
build a portfolio for purposes other than trading.
> What are the best techniques/principals you have found for best managing
> your income money from trading?
Not sure I understand what you mean here, but I trade using profit goals; daily,
weekly, monthly, etc. If the goal is met early in the period, and I still feel the
urge to trade on, then assuming profitability I trail a percentage of profit (50% in
most cases) above the profit goal as the stopping point for that trading period.
> I'm sure there are many different strategies one could use. Any advice,
> tips, or suggestions would be greatly appreciated.
Yes, this is one of many. Just my 2 cents...
Good trading,
Mike
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