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Title: A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin (Wiley Trading)
ISBN: 0470187719
Author:
Bennett A. McDowell
Publicate Date: 2008-07-08
Publish: 2008-07-08
List Price: $70.00
Average Customer Rating: 4.5
Format: Hardcover
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Amazon Lowest New Price: $36.46
Amazon Lowest Used Price: $41.37
Amazon Merchant Price: $44.10
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| Customer Review: |
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1: A tool of risk management
Risk control is always neglected by traders. In fact, money management is a essential element for successful trading; especially for the small traders. The authour of this book explained the importance of money management; teach readers how to use small amount of money to build up huge amount of wealth. Besides, it also teach readers how to avoid unexpected risk in order to keep hard earned profit. The book is recommend to everybody who want to be successful in trading market.
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2: traders money management system
This is the best book on money management I have read,in fact I have given my son another one because I want to keep this one as a reference.you will learn how to save yourself from ruin and also how objectively,you can calculate the size of the trade .
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3: Must have for traders for proper risk management
If you are serious about being a profitable stock trader then this book belongs on your top shelf. I have been trading stocks successfully for five years and have read over 100 books on the subject and put this in the top five for useful information. This book spells out each step very simply and clearly for money management,so that you can instantly know, step by step and formula by formula what you need to do so that risk is minimized and the probability of success is maximized.
The six types of risk to manage in trading are covered in detail:
1. Trade risk
2. Market risk
3. Margin risk
4. Liquidity risk
5. Overnight risk
6. Volatility risk
Your long term success will depend on your ability to control these variables to make your risk of ruin almost zero. "The markets are the ultimate university of finance and sometimes the tuition is on par with Harvard, Columbia, or Yale".
This book will take you through exercises to identify your strengths and weaknesses as a trader and show you where improvement is needed. It will also give you questions to answer to grade yourself on where your personality is on the spectrum for taking on risk and also your level of discipline.
This book contains a wealth of useful work sheets that enable you to track your trading statistics daily, weekly, monthly, and yearly. You should have at least 25 trades for a system, then check the statistics for that sample. The book suggests the key stats will be: the win ratio, payoff ratio, commission ratio, largest winning trade, largest losing trade, average winning trade, average losing trade, largest % of draw down, average of draw down, total % of profit/loss. These stats are crucial in determining where adjustments need to be made for greater success. While and average amount of risk is 2% of equity on each trade, your amount of risk could be adjusted higher or lower based on your win rate.
If you are a fan of Alexander Elder's work then this book will fit in great with his methods. There is no greater book on money and risk management on the market that I know of. Don't go back in the market with out reading it and implementing the record keeping and risk control tactics it teaches.
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4: Every Trader's Guide
Every trader should be using the money management techniques outlined in this book, otherwise it will be "love your losses".
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5: Money Management Rules to Live By
A great read and a book that you leave next to your trading monitor.
Easy to follow risk management tools that will take your trading to the next level. After reading this book I was able to apply rules to my trading that puts me on par with the Professionals. A must read for any TRADER
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