Money Management Strategies for Futures Traders

Rated 4.14 out of 5 based on 7 customer ratings

$26.30

Categories: Commodities, Futures & Derivatives, Risk Management & Position Sizing, Trading Psychology & Discipline Tag: Psychology and Risk Management

Money Management Strategies for Futures Traders distills complex theories for the benefit of the average trader with little or no background in finance or mathematics by offering a wide range of valuable, practical strategies for limiting risk, avoiding catastrophic losses and managing the futures portfolio to maximize profits. Numerous topics are explored including: why most traders lose at the futures game most of the time; why most mechanical trading systems are apt to fail; the probabilistic approach to trading; how to make stop-loss orders work for, rather than against you; the pros and cons of options versus futures trading; and how to limit risk through diversification.

In a sense, every successful trader employs money management principles in the course of futures trading, even if only unconsciously. The goal of this book is to facilitate a more conscious and rigorous adoption of these principles in everyday trading. This chapter outlines the money management process in terms of market selection, exposure control, trade-specific risk assessment, and the allocation of capital across competing opportunities. In doing so, it gives the reader a broad overview of the book.

A signal to buy or sell a commodity may be generated by a technical or chart-based study of historical data. Fundamental analysis, or a study of demand and supply forces influencing the price of a commodity, could also be used to generate trading signals. Important as signal generation is, it is not the focus of this book. The focus of this book is on the decision-making process that follows a signal.

Understanding the Money Management Process
The Dynamics of Ruin
Estimating Risk and Reward
Limiting Risk through Diversification
Commodity Selection
Managing Unrealized Profits and Losses
Managing the Bankroll: Controlling Exposure
Managing the Bankroll: Allocating Capital
The Role of Mechanical Dading Systems
Back to the Basics

Money Management Strategies for Futures Traders By Nauzer J. Balsara pdf

Author(s)	Nauzer J. Balsara
Format	PDF
Pages	274
Publication Year	1992

7 reviews for Money Management Strategies for Futures Traders

Rated 5 out of 5

Zola Lara (verified owner) – February 6, 2023

I got the book on time. In good condition. The book might be little bit difficult for non finance reader.
Rated 5 out of 5

Keenan Newton (verified owner) – March 20, 2023

recommend it for the insights into the market the math is probability not convinced but overall in the top 1% of 1% books i have read on the futures markets!
Rated 4 out of 5

Jase Shah (verified owner) – April 16, 2023

The book provides in depth knowledge on many aspects of trading futures. I recommend taking a look.
Rated 5 out of 5

Braelynn Mason (verified owner) – June 20, 2023

I found the book to be a little dry but quite good. I have recommended it to several of my friends who trade options. I am not a futures trader my self but I found the ideas discussed to be very useful. You might want to read Fortunes Formula first which is a little shy on the math side and then this book.
Rated 3 out of 5

Rory Moyer (verified owner) – October 13, 2023

If you really want a complex approach to $ Management and want to dig deep under the hood then this book is for you.

As a futures trader for over 30 years, I can say that KISS makes more sense. If you trade multi-lots (which you should – 2 minimum) then all you need is to determine your expectancy for your various setups over a sample size and have a scaling regimen that gives you a high probability of laying your risk off.

After that it is basically a normal distribution of data points to determine your overall expectancy over a large (30 -50 trade) sample size for your various setups.
Rated 2 out of 5

Alaya Wolf (verified owner) – December 8, 2023

Pretty disappointed with the book. I expected a structured approach, supported, and confirmed by the author’s practice.
It is mainly a collection of methods borrowed from statistics, game theory and other authors (such as Ralph Vince).
Everything remains fairly general and not concrete.
A third of the book is devoted to appendices containing tables of figures that are not useful because they are calculated for a given market period, and therefore to be updated if you wish to use them.
Rated 5 out of 5

Brandon Moses (verified owner) – January 5, 2024

This book was released in 1992 — and is still as essential today to traders as it was 16 years ago. It seems like it is a secret gem of a book since there are no Amazon.com reviews posted in all these years.

Maybe it’s time for this classic to be discovered by a new generation of traders and investors. There is a reason Balsara’s book is cited by 34 other books (most of which are written by the master traders of our time) and it is because this is the textbook that the master traders refer to in creating their money management strategies. This book has the formulas and the theory you need to manage your risk and avoid the risk-of-ruin.