Sunday 3 March 2013.
In line with my decision at the start of this year, I shall be taking out 50% of the profits made each month. The January profit was very small (just 1.3%) so I didn’t withdraw anything. The February profit is 12.6%, the account equity is $114,065, i.e. profit from the start of the year is 14.1%, so a reasonable amount can be withdrawn. I am withdrawing $7,065, or 50% of this amount as my ‘earnings’.
Therefore the new starting balance for March will be $107,000. Earnings (ie profits taken out) are already tracked in my worksheet (top right side of worksheet, in green).
This also means that tracking account equity alone is not a correct measure of my trading performance. Account gain in % each month is the correct measure, and from now on this is the measure that I will emphasise. As I wrote in my last post, my target for ‘normal’ gains each month is 50%.