A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin (Wiley Trading)

• The psychology of risk control as well as the finer aspects of setting stop-loss exits

• The value of managing trade size and consistent record keeping

• The process of putting together your own personal money management system

Unlike other books that focus on the complex mathematical theories behind money management, this book presents its system in straightforward, easy-to-understand terms that will allow you to quickly see how these concepts workand immediately benefit from the value of effectively managing risk.

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All Customer Reviews
Average Customer Review:
2 of 2 people found the following review helpful:

Rock Solid, 2008-10-09
I don't care how good your trading method may be, if it does not incorporate a sound money management system your are sure to fail in the trading arena. This book lays out step by step how to create and implement a rock solid money management system to fit your trading method that will ensure your success as a Trader.


2 of 4 people found the following review helpful:

Great Read on the Most Important Component of Any Trading Strategy, 2008-09-01
Watch Video Here: http://www.amazon.com/review/RHJ41D0Z1V960 One of the few books out there that focuses completely on one of the most important, yet often overlooked aspects of trading, money management. Where other books tend to devote only a chapter or two on money management, Author Bennett McDowell devotes his entire 170 page book to the topic. Here you will find answers to some of the most important questions in trading such as why money management is so important yet often overlooked, the psychology of money management, strategies for placing stop losses, how to scale into and out of trades, and how to correctly size positions. Also included are sections on record keeping and how to analyze profits and losses, complete with record keeping documents that can be photocopied directly from the book.


2 of 2 people found the following review helpful:

Important Topic for Traders, 2008-09-01
A very clearly written and readable text on the #1 topic for success as a trader. The book offers valuable advice on crafting a money management system tailored to your individual style and needs. In my opinion, one of the best books out there on this hugely important topic. What sets it apart is it's readability. This will be a book I come back to a lot, I am sure.


2 of 2 people found the following review helpful:

The Real Secret?, 2008-08-30
I am a veteran of over 30 years of hands-on trading and a former member of many exchanges, NYSE, ASE etc

Even though I have been a successful trader I have always had a problem exposing myself to too much risk and undue stress.

In this book the dedicated reader will gain useful insight into the only secret on Wall Street and that is money management.


3 of 4 people found the following review helpful:

How much should you risk?, 2008-08-26
That's the million dollar question at the heart of sound money management, how much should you risk on each trade? McDowell answers the question superbly in his book and gives the reader tools to answer this question for yourself. The debate on this topic has raged on prior to the release of McDowell's book and will surely continue on long after as well.

Some traders will urge you to never risk more than 2%. And, the traders in this camp feel that Ralph Vince's obsession with Optimal f formulas pose far too much risk for any trader. While other traders (see a John Bollinger review posted on one of Vince's books) will warn you against risking too little. The dilemma with risking too little is that you will minimize your rate of return and weaken your edge.

Perhaps, as McDowell's new book outlines, the answer to this question lies somewhere in between. He compares, and spells out, two ways to determine how much to risk: 1) referring to the risk of ruin tables; and 2) using the Optimal f formula. Either way, you absolutely need to know what both your current pay off ratio and win ratio are, so that your choices are based on data not impulse.

This book gives you the formulas and information to make an informed decision on how much to risk. How you use the information (via testing your own system) is up to you.

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