A Trader's Money Management System
How to Ensure Profit and Avoid the Risk of Ruin
Published on 6. January 2011
210 pages
978-0-470-42859-7 (ISBN)
Description
Money management may very well be the most important piece of thetrading puzzle. In A Trader's Money Management System,expert Bennett McDowell provides time-tested techniques that canturn a losing trader into a winning one?and take the winning traderto an entirely new level. In revealing his personal approach tostaying out of trouble in the financial markets and maximizingprofits, he offers comprehensive insights into:
* The psychology of risk control as well as the finer aspects ofsetting stop-loss exits
* The value of managing trade size and consistent recordkeeping
* The process of putting together your own personal moneymanagement system
Unlike other books that focus on the complex mathematicaltheories behind money management, this book presents its system instraightforward, easy-to-understand terms that will allow you toquickly see how these concepts work and immediately benefit fromthe value of effectively managing risk.
* The psychology of risk control as well as the finer aspects ofsetting stop-loss exits
* The value of managing trade size and consistent recordkeeping
* The process of putting together your own personal moneymanagement system
Unlike other books that focus on the complex mathematicaltheories behind money management, this book presents its system instraightforward, easy-to-understand terms that will allow you toquickly see how these concepts work and immediately benefit fromthe value of effectively managing risk.
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Bennett A. McDowell
A Trader's Money Management System
How to Ensure Profit and Avoid the Risk of Ruin
Book
07/2008
Wiley
€68.00
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Persons
BENNETT A. MCDOWELL is the founder of TradersCoach.com¯®¯ and an expert in technical analysis and complex trading platforms. Earlier in his career as a financial advisor, McDowell used his own proprietary trading system to serve a community of high-net-worth clients. This system is now known as Applied Reality Trading¯®, or ART¯®, and is used by traders around the world in over forty countries. McDowell lectures nationally and writes articles for many leading trading publications, including Technical Analysis of Stocks & Commodities magazine. He is a recognized leader in trading education and is honored to be included as a member of the eSignal "Trading with the Masters" team. McDowell is also author of The ART¯® of Trading, which is published by Wiley.
Content
Foreword vii
Preface ix
Acknowledgments xi
Diclaimer xiii
INTRODUCTION This is My Money Management System 1
PART ONE Psychology of Risk Control 7
CHAPTER 1 It Just Ain't Sexy! 9
CHAPTER 2 Confidence in Your Plan 15
CHAPTER 3 Yin and Yang 23
CHAPTER 4 Risk Psychology and The Trader's Mindset 31
PART TWO Stop-Loss Exits 37
CHAPTER 5 Not Every Trade Will be a Winner 39
CHAPTER 6 Entry Rules and Your Trading System 45
CHAPTER 7 Stop-Loss Exit Rules 55
CHAPTER 8 Scaling Out and Scaling In 65
PART THREE Trade Size Does Matter 73
CHAPTER 9 Using Risk-of-Ruin Tables and the Optimal f Formula 75
CHAPTER 10 Using the Two Percent Risk Formula and Proper Trade Size Formula 83
PART FOUR Record Keeping and Profit/Loss Analysis 89
CHAPTER 11 Tracking Profit and Loss Results and More Formulas for Success 91
CHAPTER 12 Using Trade Posting Cards and Ledgers 99
PART FIVE Design Your Own Plan 131
CHAPTER 13 Know Thyself--Your Risk Profile and Discipline Profile 133
CHAPTER 14 Risk Management Rules to Choose From 139
Epilogue 149
APPENDIX A Getting Started with Your Trade Size Calculator Software 151
APPENDIX B The Trader's Assistant Record Keeping System 153
APPENDIX C The Art of Paper Trading 167
APPENDIX D Resources 173
Glossary 179
About the Author 203
Index 205
Preface ix
Acknowledgments xi
Diclaimer xiii
INTRODUCTION This is My Money Management System 1
PART ONE Psychology of Risk Control 7
CHAPTER 1 It Just Ain't Sexy! 9
CHAPTER 2 Confidence in Your Plan 15
CHAPTER 3 Yin and Yang 23
CHAPTER 4 Risk Psychology and The Trader's Mindset 31
PART TWO Stop-Loss Exits 37
CHAPTER 5 Not Every Trade Will be a Winner 39
CHAPTER 6 Entry Rules and Your Trading System 45
CHAPTER 7 Stop-Loss Exit Rules 55
CHAPTER 8 Scaling Out and Scaling In 65
PART THREE Trade Size Does Matter 73
CHAPTER 9 Using Risk-of-Ruin Tables and the Optimal f Formula 75
CHAPTER 10 Using the Two Percent Risk Formula and Proper Trade Size Formula 83
PART FOUR Record Keeping and Profit/Loss Analysis 89
CHAPTER 11 Tracking Profit and Loss Results and More Formulas for Success 91
CHAPTER 12 Using Trade Posting Cards and Ledgers 99
PART FIVE Design Your Own Plan 131
CHAPTER 13 Know Thyself--Your Risk Profile and Discipline Profile 133
CHAPTER 14 Risk Management Rules to Choose From 139
Epilogue 149
APPENDIX A Getting Started with Your Trade Size Calculator Software 151
APPENDIX B The Trader's Assistant Record Keeping System 153
APPENDIX C The Art of Paper Trading 167
APPENDIX D Resources 173
Glossary 179
About the Author 203
Index 205
