A Trader’s Money Management System: How to Ensure Profit and Avoid the Risk of Ruin
In A Trader’s Money Management System, expert Bennett McDowell provides time-tested techniques that can turn a losing trader into a winning one and take the winning trader to an entirely new level.
This book, a Trader’s Money Management System is my personal approach to staying out of trouble in the financial markets and maximizing
my profits. It’s a comprehensive strategy that will take you from the psychology of risk control to the finer aspects of setting stop-loss exits and the value of managing trade size, to record keeping. Finally, it is a step-by-step guide on how to put together a personal system that works for you.
In the spirit of expecting the unexpected, we can always attempt to plan for what might happen. In doing so, there are half a dozen primary types of risk for you to consider every time you place a trade. We will cover each of these in detail in the coming chapters, but ponder the following top six for now:
- 1. Trade risk
- 2. Market risk
- 3. Margin risk
- 4. Liquidity risk
- 5. Overnight risk
- 6. Volatility risk
A Trader’s Money Management System is laid out in five parts, all designed to help you develop your own money management system. Following is a summary of the parts so you will have an understanding of where to get what you need at any given point along the way.
Make the book work for you. Refer to the table of contents if you want to dive in to one specific topic, you can fluidly move from one part of the material to the other, depending on your experience level and needs.
- Psychology of Risk Control
- Stop-Loss Exits
- Trade Size Does Matter
- Record Keeping and Profit/Loss Analysis
- Design Your Own Plan