As a stock trader, how do you take out your capital and allow your profit to run?
Here are 3 simple methods traders use:
1. The 100% Rule (Capital Withdrawal Method)
When your investment doubles, remove your original capital.
Example:
You invest ₦1,000,000
It grows to ₦2,000,000
You remove your ₦1,000,000 (your capital)
You leave ₦1,000,000 (profit) in the market
Now, no matter what happens, your original money is safe.
2. Percentage Withdrawal Method
When a stock grows 30% – 50%, you remove part of your capital.
Example:
Invest ₦1,000,000
Portfolio grows to ₦1,400,000
Remove ₦400,000
Leave ₦1,000,000 invested
You have reduced your risk but still remain in the market.
3. Dividend Payback Method (For Long-Term Investors)
If you invest in dividend-paying stocks, you can recover your capital gradually through dividends.
Example:
Invest ₦1,000,000
You receive ₦100,000 dividend every year
In 10 years, dividends have paid back your capital
But you still own the shares
This is how long-term investors build wealth.
