For traders, ensuring consistent profitability is the most critical element of being a successful trader. If you are our client for some periods, ensuring consistent profitability should not be an issue for you. After this, what’s next? In this article, we want to talk about how can profit recycling help to ensure long-term sustainable profitability after you have consistent profitability from trading.
Learnings from World Cup 2022
The world cup 2022 has over and we all should congratulate Argentina and Lionel Messi for their well-deserved championship. But, what can you learn from this world cup 2022? Qatar World Cup 2022 is known as the most expensive World Cup in world cup history. Do you know why Qatar is willing to spend so much money for this world cup?
The background is, the whole world is moving towards green energy. Oil and gas exports are a major source of income for Qatar, which is up to 70% of their total export. Qatar realized that there is a need to diversify its income. Hence, they are willing to spend billions to recycle their profit into infrastructure construction and the tourism industry, with the intention to grow their tourism over years to have new separate income sources.
Big Tech Layoff
Recently, all the big tech such as Google, Microsoft, Netflix, Meta, and Tesla are laying off people. If you refer to this Layoff website, you will be surprised how many big techs and startups are retrenching their employee. Again, what can you learn from this layoff?
There is no income source that can last forever.
Limitless Trading
When you have only a single employment income, you should recycle your employment income to generate another income source. We believe this is the reason that you are here. You have used your current income as capital for Automated Trading and gained a trading income through our Expert Advisors. Now you already have a consistent trading income, it is time to use your trading income to diversify and generate another new income source.
This is how the corporate did it by using current income and investing in new business. This is how a country like Qatar did it. This is also how you should do it for your long-term success.
What is Profit Recycling exactly?
This is how ChatGPT replies on Profit recycling.
Profit recycling refers to the practice of using the profits generated by a business to reinvest back into the company. This can be achieved through various means, such as expanding the business, improving existing operations, acquiring new businesses, or repaying debt. The aim of profit recycling is to increase the value of the company over the long term, thereby improving its financial performance and creating a more sustainable business model. This practice is typically carried out by large corporations and is seen as a way of ensuring long-term growth and stability, rather than simply maximizing short-term profits.
ChatGPT
In our context, Profit recycling is the practice to use the profit from trading income to reinvest into different strategies or different trading systems, or different assets to generate new income sources. You could reinvest in higher-risk trading which generates higher income or you could also reinvest in a lower-risk asset which generates lower income. Ideally, moving from higher-risk trading into a lower-risk asset is preferable as it gives you higher certainty of your long-term success.
The only thing that won’t change in this world is it keeps changing.
Limitless Trading
Dealing with an unknown future, there is no way that we can guarantee our trading system, employee income, and business income will still work as it is in the future. Instead of worrying when they won’t work, focus on what you can do now to increase your chance for long-term sustainable income. And we believe, this can be achieved through diversification into different strategies, different asset classes, and profit recycling.
If you currently using our Ophiuchus EA to gain your trading income, you can consider our other strategies for diversification and profit recycling.
In the future, we will also release a series of articles on profit recycling strategy. We hope all these will help all our clients for long-term sustainable success.