Money Management

I was re-reading a couple of my books on money management. There are three that I could suggest as a starting point:
The Ryan Jones book, one of the Ralph Vince books, and, of course, Vam Tharp's books.


Many of the above are available on Kindle and would make a worthwhile week-end read.


Good money management improves how much you make with your trading system/methodology. It's as simple as that. It's all about position sizing. When to increase and when to decrease. In any one day, the risk per trade for me is the same, whether I'm trading a 25% position or a 100% position. However, how you manage your trading size as your account size grows will have a huge impact on your annual profitability. Naturally, that assumes CP.


One take away from Ryan Jones' book is that people start to use money management too late. They often want to get some profits under their belt before they implement a money management strategy. Jones says "do it now". A proper money management strategy makes such a difference that even a 3 month delay will cost.


No trades for me today. Back to charts on Monday.


Good Weekend.