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REDDIT

“Profit” — every trader’s favorite word (and the most mismanaged one)

On FuturesMove, we spend a lot of time talking about **losses**.
Risk. Drawdowns. Protection.

So it almost looks like all we ever do is lose.

But today, let’s talk about something more cheerful — **profit**.
More specifically: **how to manage it**.

Here’s how I personally do it.

I pay myself **every week**, but only when the week is green.

From total weekly profit:

* **80% I pay myself**
* **20% stays inside the trading system**

That 20% is split into:

* **10% backup capital** (for bad losing streaks — yes, they happen more often than traders admit, especially in crypto)
* **10% added to trading equity** (slow, boring, powerful growth)

Now the **80% I pay myself** is also split:

* **20% → emergency fund** (remember: 6–12 months of living expenses)
* **20% → other investments** (education, tools, a course, a new idea, maybe a coin with long-term potential)
* **15% → savings account** (boring money, locked, protected)
* **25% → life** rent, food, family, fun — living like a human

On red weeks, I **don’t pay myself from trading**.
That doesn’t mean I starve — that’s exactly why emergency savings and the 25% exist.

This system is mainly for people who want to **live off trading** — and let’s be honest:

You can’t do that with a $100 account.
Under $5k equity, it’s fantasy.
And location matters — some cities are cheap, others are not.

# Concrete example

Trader A lives in an Asian or African city where life is relatively affordable.
Capital: **$5,000**

Monthly performance over 4 weeks:
\+15%
\+4%
\+20%
\-12%

Net profit ≈ **$1,350**

Now apply the system:

* $135 → backup capital
* $135 → added to equity
* $270 → emergency fund
* $270 → other investments
* \~$200 → savings
* \~$335 → living expenses

Some months will be worse. Some better.
That’s exactly why **savings come before full-time trading**.

This trader doesn’t panic after 5 or 10 losing trades.
Risking 1% per trade, his **life expenses are not connected to his open positions**.

Red week or green week —
this man still sleeps well, and yes…
he still has his beer 🍺

That’s what real trading looks like.