Best book on money management?

[SOCRATES]

Former "barrow boys" are said to have become successful financial traders in the City. So, it seems that no GCSE's and mettalic gonads, a Robin Reliant plus a background in "wheeler dealing" is all one needs to succeed in trading forex, shares etc.

No, it is not that at all, it just happens to be a coincidence, and this coincidence has embedded itself in popular culture, and promoted wherever and whenever possible, so that it becomes an extension of a group of ideas.

Think about this deeply and reflect.

I am not opening Pandora's Box.

 

[Salty Gibbon]

I am not opening Pandora's Box.

Bet you wish you were though, heh ? :cheesy:

 

[Anonymous]

a background in "wheeler dealing"

The wheeler dealing aspect, unless you mean driving to and fro to collect the stocks and deliver them, seems more proper in the context of marketing. To wheel and deal one need things like salesmanship.

Trading, as in dealing with the prices shown at the screen, is not the same as salesmanship, nor marketing, nor people management. It requires personal management skills, but not exactly personnel management skills.

 

[neil]

smile Anon. And Socrates

The wheeler dealing aspect, unless you mean driving to and fro to collect the stocks and deliver them, seems more proper in the context of marketing. To wheel and deal one need things like salesmanship.

Trading, as in dealing with the prices shown at the screen, is not the same as salesmanship, nor marketing, nor people management. It requires personal management skills, but not exactly personnel management skills.

Lighten up fellas - The posting was in fun

 

[SOCRATES]

You can only be told by not being told

Bet you wish you were though, heh ? :cheesy:

Nope, it would spoil the pantomime.

 

[Salty Gibbon]

I think we're on different wavelengths here Soc, mine being somewhat less intellectual than yours.

Lol.

 

[SOCRATES]

I am trying to bring several things to your notice but you somehow put a humourous slant on it and miss it, out of range of the thought patrol.

 

[Grey1]

There seems to be a dearth of good books on money management in trading in particular subject of position sizing. Can anyone recommend a good book that they have read? I can recommend Daryl Guppy's book on Money Management, but I'd like to read more.

May I suggest to trade in equal sizes for the time being instead try to get the TREND DIRECTION right .. If you fail to get the direction right no money managment on this planet gonna save your $$$

I am all for MM provided the analysis is a proven success

Grey

 

[neil]

Beauty of simplicity

May I suggest to trade in equal sizes for the time being instead try to get the TREND DIRECTION right .. If you fail to get the direction right no money managment on this planet gonna save your $$$

I am all for MM provided the analysis is a proven success

Grey

Simple - but most useful advice is

 

[blackcab]

If someone who has never traded, never experienced nor even heard of the horrendous curse of the "losing streak" were to read a book like a 200 to 400 pages thesis on Money Management, it is still likely he doesn't understand the difference between risking 2% of capital and trading risk-free, after reading and reading the book.

How can one trade "risk-free", other than by not trading at all?

 

[Anonymous]

Not trading at all is a skill too difficult to master by those who are addicted to trading.

Thus, when the trading addicted takes effect the addicted cannot stop trading. And it is necessary to free that addiction by taking a risk.

As some wise guy suggests: Money is the opium of the masses.

 

[SOCRATES]

No, hope is the opium of the masses, money is what drives it.

 

[Anonymous]

Hope is the catalyst, money is the opium that the addicted crave for, evidenced by their struggles, working for money, begging, borrowing, stealing for money.

Hope is the catalyst, as evidenced by their daily rituals as they chant:

Home Money Many Home
Home Money Many Home
Many Money come to Home
Many Money come to Home
in comes the Many Money
Many Money come on in

Followed by the luxurious practice by rich and poor alike of burning money so more money can come in.

 

[Trader333]

It is possible to trade completely risk free but this usually requires very large positions which is not possible for most traders. There are also other ways that involve the cooperation of brokerage companies that are on commission that is based on number of shares traded but I wont go into detail on that one.


Paul