Many people double their accounts but do not withdraw funds. As a result, when the market reverses, they can't even preserve their principal. I used to be the same, until I experienced a significant loss and realized: only the money safely withdrawn is real profit.
Why withdraw funds? There are three reasons:
1. Profit not realized = paper wealth
Having 1 million in the account is not as solid as having 100,000 in the bank. Only through withdrawal can it be considered genuine earnings.
2. Lock in phase results, reduce anxiety over drawdowns
Every withdrawal is an acknowledgment of your strategy and a reward for past trading phases.
3. More stable psychologically
After withdrawing, even if the account fluctuates, it won't affect you much. On the contrary, if you have all profits in the account without withdrawing, once your mindset fluctuates, it’s easy to make wrong decisions.
Withdrawals also have a rhythm; you can refer to my rhythm:
1. When account profits exceed 50%, withdraw the original principal first
Example: If you grow from 10,000 to 15,000, withdraw 5,000 first; future profits and losses belong to the 'market money'.
2. After each major market movement, withdraw a fixed 10%-30% of profits
For instance, if you made 20,000 from a long position on SOL, immediately withdraw 6,000 to prevent profits from running away.
3. Periodic withdrawals
Regardless of profits or losses, make a regular withdrawal once a month. Treat trading as a 'job' rather than pure investment.
Recommended withdrawal methods:
1. Use official channels, such as Binance's P2P trading or bank card withdrawals, to avoid third-party OTC risks.
2. The withdrawal amount should not be too large or too frequent; distribute it reasonably and pay attention to compliance and risk control.
3. Withdraw to your real-name wallet or account, keep records, and facilitate future management.
In summary, it can be boiled down to one phrase: safety in withdrawal.
If you have losses and want to recover or flip your account, you can follow me. When will you make money if not in this market?
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