Question for successful traders...
I have for the last 3 years tested a trading methodology that has yielded me consistent monthly returns and I have now doubled my account. I am very conservative by nature, so I wanted to be very sure that this was not a random result before I risked a great deal of money. I have honed the system pretty well so that I can scale my trading to the amount of equity I have available to invest without fearing a major lasting downside issue, understanding that nothing in this area of trading is certain. In fact, my evaluation shows I have been more conservative than I need to be and am pretty sure I can increase my returns to a greater level.
After three years, I am prepared to move from an experiment with a relatively small account to something much more substantial.
My question is - for traders with a lot of money tied up in trading accounts - how do you manage your funds? Do you cap the amount in a single account to a particular level? Do you split your funds between multiple brokers and accounts? Or if you find a broker you feel good about, do you just let your accounts ride with a single broker?
I have never had such a large sum of money in my account that I felt the need to concern myself with all the things a person may worry about with larger sums of money. Since I anticipate continued success, these questions are not just for today, but for future considerations.
My other question is about taxes. With a smaller account, I pretty much was OK with just labeling this as income, meaning it was taxed at my marginal rate. I will want to take advantage of lower tax possibilities so will likely look for an accountant to handle my taxes in the future. Any advice on the right questions to ask to ensure that I get someone who knows what the heck they're doing? I've broached the topic with a couple different accountants and while they assured me they'd be able to handle it, I was not at all confident that they seemed to have a clue what I was talking about when I mentioned currency trading or Forex.
Just curious what kind of advice those out there have to give on the subject?