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Many traders let profits compound inside the account forever. Others withdraw too soon. A written policy settles the question.

Withdrawing regularly, say a fixed percentage of monthly profit, turns paper gains into real money. It also protects against future losses and reduces the temptation to increase risk.

Leaving profits in the account allows compounding, though larger balances tempt larger positions.

A middle path withdraws a fixed share of profits, such as 30 to 50 percent, and leaves the rest. The timing can be monthly or after each new account high.

There is a psychological side as well. Seeing real money leave the account makes success tangible and reduces the sense that the balance is play money.

Whichever policy is chosen, writing it down in advance keeps emotion out of the decision.

Testing a withdrawal early also verifies that the broker's process works.

What is the withdrawal policy here, and has it changed after a good or bad month?

I went several years without withdrawing anything, and in hindsight it made me treat the balance as a score rather than money. When the account was up a good amount, I started taking bigger positions almost without noticing, and one bad month took back half a year of gains.

Since then I withdraw forty percent of each month's profit on the first trading day of the next month, and nothing in a losing month. The rest stays in to compound slowly. Having a fixed date and a fixed share removes the debate, and I stopped staring at the balance waiting for a nice round number before deciding.

I also did a small test withdrawal right after opening the account, which I would recommend to anyone with a new broker. It took four working days and there was a small bank charge on my side I had not expected. Knowing that in advance meant I could plan larger withdrawals around it rather than being surprised.