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The Successful Trader's Guide to Money Management. Proven Strategies, Applications, and Management Techniques. Edition No. 1. Wiley Trading

  • ID: 5203804
  • Book
  • May 2021
  • 320 Pages
  • John Wiley and Sons Ltd

Discover how to maximize the effectiveness of your trading techniques by applying the right money management techniques

Money management is a central element of trading the financial markets, especially in uncertain times. Yet investors often misinterpret the central concepts of money management. To manage risk and obtain optimal rewards from your trades, you will benefit from a deeper understanding of how the professionals manage money. The Successful Trader’s Guide to Money Management describes the operating methods that seasoned investors use. With this book, you’ll avoid the common mistake of focusing too much on entry levels and stop-losses, and you’ll learn to consider the impact of proper money management on your final portfolio results.

Successful traders focus on risk management, avoiding opening positions that are too large with respect to the total capital they have available. Packed with practical examples and with special focus on money management or position-sizing, The Successful Trader's Guide to Money Management offers a comprehensive coverage of widely practiced risk management models, examining their strengths and weaknesses. You will learn how to use the most effective operating models, including the Fixed Fractional, Fixed Ratio, and Percent Volatility models. This book also provides a thorough analysis of portfolio management models. These essential tips will nudge you toward a more winning position as you enter your next trades.

  • Learn how the professionals manage money and avoid common trading mistakes
  • Design a trading system that minimizes risk and maximizes reward through correct position sizing
  • Understand the most important money and portfolio management models, including Fixed Ratio, Percent Volatility, Fixed Fractional, and more
  • Equip yourself to trade smarter, individually or with a broker, on equity, derivatives and Forex markets

For individual and institutional investors alike, this book is a ticket to more solid trading strategy, especially in uncertain times.

Note: Product cover images may vary from those shown




CHAPTER 1: Martingale and Anti-Martingale

1.1 The Right Stake

1.2 Martingale

1.3 Anti-Martingale

1.4 More Examples

1.5 A Miraculous Technique?

1.6 Conclusions

CHAPTER 2: The Kelly Formula

2.1 Kelly and Co.

2.2 Conclusions

CHAPTER 3: A Banal Trading System

3.1 Analyzing a System Based on Moving Averages

3.2 Applying the Kelly Formula

3.3 Conclusions

CHAPTER 4: Money Management Models

4.1 Fixed Fractional Method

4.2 Optimal f

4.3 Secure f

4.4 Fixed Ratio

4.5 Percent Volatility Model

4.6 Levels for Changing the Number of Contracts

4.7 Conclusions

CHAPTER 5: Refining the Techniques

5.1 The Importance of the Trader’s Temperament

5.2 Reduced f

5.3 Aggressive Ratio

5.4 Asymmetric Ratio

5.5 Timid Bold Equity

5.6 Equity Curve Trading

5.7 z-Score

5.8 Conclusions

CHAPTER 6: The Monte Carlo Simulation

6.1 Using Monte Carlo Simulation

6.2 Maximum Loss

6.3 Conclusions

CHAPTER 7: The Work Plan

7.1 Using a Work Plan

7.2 Conclusions

CHAPTER 8: Combining Forces

8.1 Using a Combination of Systems

8.2 Portfolio Money Management

8.3 Which Capital?

8.4 The Effects of Portfolio Money Management

8.5 Conclusions

CHAPTER 9: Money Management When Trading Stocks

9.1 Tading in the Stock Market

9.2 Conclusions

CHAPTER 10: Portfolio Management

10.1 A Portfolio Approach

10.2 Some Improvements to the System

10.3 Conclusions

CHAPTER 11: Discretionary Trading

11.1 Trading Criteria and Definition

11.2 An Example: Mediaset

11.3 Adjusting Volatility During the Trade

11.4 Trading Futures

11.5 Conclusions

CHAPTER 12: Questions and Answers


I.1 The Impact of a Trading System on Planning

I.2 The Trading System


II.1 Understanding the Type of Strategy

APPENDIX III The Advantages of Forex

APPENDIX IV: Online Trading

IV.1 The Trader

IV.2 Trading Profits

IV.3 Systematic or Discretionary?

IV.4 Choosing the Broker

IV.5 Which Platform?

Note: Product cover images may vary from those shown
Andrea Unger
Note: Product cover images may vary from those shown