I will prefer to be a second type of trader. I see forex is highly risky investment. So I will prefer to withdraw on regular basis (if I am making profit regularly ).

Reinvesting is only an option if I am investing very low amount and I want to compound my earning.
I consider 2nd option better than 1st and 3rd option.

I think its a combination of all of the options, after all who wouldnt want to pay them selves an income from doing all this work?

on the other side, I would always want to minimize my exposure.

What I always suggest is this:

If you have say $1,000 and you made a pretty impressive 10%in a month, while it is only $100 it is still a very nice return, most professional traders would kill for such an amount. 

pay your self 35% of the profits, and take another 65% as a capital return.

what does that mean? well it means that after all is said and done, you have taken a total of $100 and left the account exactly like it was the month before. 

The only diffrence is that your money is now only 93.50% of it, and the rest is money that was made.

As you will see after a few months of trading, you should be able to replace your original investment with money from trading and all this time you paid yourself and spent money, so if god forbid you blow out the account after some time, you wont walk away empty handed. 

You

a) would have some capital set aside to start again

b) enjoyed the fruits of your labour from the extra cash you had taken out.

just my two cents

the second options goes for me.

Originally posted by LonelyTraderGroup

I think its a combination of all of the options, after all who wouldnt want to pay them selves an income from doing all this work?

on the other side, I would always want to minimize my exposure.

What I always suggest is this:

If you have say $1,000 and you made a pretty impressive 10%in a month, while it is only $100 it is still a very nice return, most professional traders would kill for such an amount. 

pay your self 35% of the profits, and take another 65% as a capital return.

what does that mean? well it means that after all is said and done, you have taken a total of $100 and left the account exactly like it was the month before. 

The only diffrence is that your money is now only 93.50% of it, and the rest is money that was made.

As you will see after a few months of trading, you should be able to replace your original investment with money from trading and all this time you paid yourself and spent money, so if god forbid you blow out the account after some time, you wont walk away empty handed. 

You

a) would have some capital set aside to start again

b) enjoyed the fruits of your labour from the extra cash you had taken out.

 

just my two cents

 

It is an example of regular withdrawal. I agree with it. Regular withdrawals are necessary from my point. We can have our invested money back if we r able to make profit consistently.

I am also in favor of slow withdrawal of profits mainly bcoz of following reasons.

1- To get back what u have invested
2- To minimise loss in case of worst
3- To save money
4- To increase motivation level

I am in favor of withdrawing all profit. As a trader, I will only invest when I feel that I am doing good. I will prefer to withdraw all profit.

Originally posted by Sasha

I am in favor of withdrawing all profit. As a trader, I will only invest when I feel that I am doing good. I will prefer to withdraw all profit.

me too. If I want to invest more, I will not invest in small parts. I will prefer to withdraw profits and then invest semi-annualy or quarterly. It depends on how much I have to invest.

Actually if we have our profits reinvested then we will try to trade on bigger lots which means more risk. I will first see if I am really that good or if I can take that much risk.

If we r making 10% profit each month, on average, then it will take 10 months to double our capital. So if a trader is initially trading at 1 microlot per trade then after 10 months he can do 2 micro lots per trade. So even if we do not withdraw profits, they r not of any use.

Some traders try to trade with bigger lots if they luckily make profits in the start. This is a big reason of loosing investment rapidly.

@SASHA I agree with you that reinvesting your earnest profit again in your capital is not a recommended thing from all the traders because most of the traders don't invest their total profit again in their capital they always invest some percentage of profit.