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Money Management books?

  • #1
  • First Post: Jul 30, 2006 2:09pm Jul 30, 2006 2:09pm
Does anyone have any recomendations for books on money managment? I've been implementing a pretty basic MM strategy for my Forex trading, but I'm looking to improve it especially since other people are asking me to manage their money now.

I mostly looking for info on scaling into and out of positions, determining postion size and maximum risk, etc.
  • #2
  • Jul 30, 2006 6:17pm Jul 30, 2006 6:17pm
Hey Loki, there are a few pdf versions you can have a look at here (there will be more coming now and then so be sure to check back occasionally):

http://www.beginnertrader.com/forum2...orum.php?id=10
You can quit and they won't care, but you will always know.
  • #3
  • Aug 10, 2006 3:00pm Aug 10, 2006 3:00pm
Do you have to register to download the pdfs or am I just retarted? I click on the threads, but only come up with a short description, not the actual files.
  • #4
  • Aug 10, 2006 3:24pm Aug 10, 2006 3:24pm
for starters, read Van Tharp's book, he has some good stuff on position sizing. and for the advanced MM read Fred Gehm and if you are bored read Ralph Vince.
Relax and be happy.
  • #5
  • Aug 12, 2006 8:55am Aug 12, 2006 8:55am
I did a search but did not find any reference to "Fooled by Randomness" by N. Taleb.

Can anyone give a review of this?


Lou
  • #6
  • Aug 13, 2006 6:49am Aug 13, 2006 6:49am
Quoting Loki
Do you have to register to download the pdfs or am I just retarted? I click on the threads, but only come up with a short description, not the actual files.
Yes Loki, you need to register
You can quit and they won't care, but you will always know.
  • #7
  • Edited 11:16am Aug 13, 2006 11:04am | Edited 11:16am
Quoting Loki
Does anyone have any recomendations for books on money managment? I've been implementing a pretty basic MM strategy for my Forex trading, but I'm looking to improve it especially since other people are asking me to manage their money now.

I mostly looking for info on scaling into and out of positions, determining postion size and maximum risk, etc.
Hi Loki,
a goog book about money management is "Trade your way to financial freedom", Van K. Tharp

Canados
  • #8
  • Aug 13, 2006 2:42pm Aug 13, 2006 2:42pm
Van Tharp all of the way
  • #9
  • Aug 28, 2006 7:19am Aug 28, 2006 7:19am
Quoting canados
Hi Loki,
a goog book about money management is "Trade your way to financial freedom", Van K. Tharp

Canados
Very nice book indeed.
But I think this is the best book for a quick head start:
http://www.iitm.com/products/books/rptmm.htm
May the pips be with you.
  • #10
  • Aug 28, 2006 6:42pm Aug 28, 2006 6:42pm
Quoting Lou
I did a search but did not find any reference to "Fooled by Randomness" by N. Taleb.

Can anyone give a review of this?


Lou
Lou,

I read Fooled by Randomness and found it to be an excellent book. It applies to trading as well as life. I am constantly amazed by traders who got lucky and falsely believe they are good. Eventually probabilities catch up with them. I thoroughly enjoyed the book.

Phil
  • #11
  • Aug 28, 2006 7:29pm Aug 28, 2006 7:29pm
Lou - Here is a link to an interview w/ the Nassim Taleb. You'll get a flavor of the book by reading this. I agree w/ PhilMcgrew, its a good read.

http://www.traders.com/Documentation...Interview.html


Quoting Lou
I did a search but did not find any reference to "Fooled by Randomness" by N. Taleb.

Can anyone give a review of this?


Lou
In trading, there is no bullshit. You either make money or you don't.
  • #12
  • Aug 28, 2006 8:00pm Aug 28, 2006 8:00pm
Quoting philmcgrew
Lou,

I read Fooled by Randomness and found it to be an excellent book. It applies to trading as well as life. I am constantly amazed by traders who got lucky and falsely believe they are good. Eventually probabilities catch up with them. I thoroughly enjoyed the book.

Phil
I second the recommendation. As for the amazement, I've been saying "wow" all day long.
Secret Identity: Bill Sullivan
  • #13
  • Aug 28, 2006 8:18pm Aug 28, 2006 8:18pm
Yes I agree completely. Watch out for those Black Swans...



Quoting Captain Piptastic
I second the recommendation. As for the amazement, I've been saying "wow" all day long.
  • #14
  • Aug 31, 2006 4:57pm Aug 31, 2006 4:57pm
Quoting TraderSeven
Very nice book indeed.
But I think this is the best book for a quick head start:
http://www.iitm.com/products/books/rptmm.htm
If you had to get only one to hold you off for a while, would you get the e-book or the actual book?

I was going to get the ebook, then the actual book in a month or two, but seeing as how the ebook is rediculously expensive, I think I'm going to have to do a one or the other deal right now.
  • #15
  • Sep 1, 2006 12:14pm Sep 1, 2006 12:14pm
Quoting Loki
If you had to get only one to hold you off for a while, would you get the e-book or the actual book?

I was going to get the ebook, then the actual book in a month or two, but seeing as how the ebook is rediculously expensive, I think I'm going to have to do a one or the other deal right now.
I didn't even know there was a real book.
I just printed it for easy reading.
May the pips be with you.
  • #16
  • Sep 1, 2006 3:05pm Sep 1, 2006 3:05pm
Sorry, when I said "real book" I meant "Trade Your Way to Financial Freedom".
  • #17
  • Sep 2, 2006 2:51am Sep 2, 2006 2:51am
I have both books.

The e-book is very to the point. And crammed with info.
It discusses a few more MM/RM methods than the real book.
If you only have the cash for one book I think your best choice it the real book. But only marginally. But that's just my personal opinion....

His books are maybe a bit overpriced.
But personally I really like the info presented in the books.
Other (thicker) books may look cheaper at first sight.
But who has bought several finacial books know there is a lot of crap floating around. Just endless blabla. Fluffing things up with useless chapters about the history of forex and that kind of stuff.
May the pips be with you.
  • #18
  • Mar 17, 2013 9:38pm Mar 17, 2013 9:38pm
if you're just starting out, you shouldn't bother with MM (i mean not too much).
risk management (ratios & S/L) and psychological management might be enough for what you need.
MM is more complex than most people think.

Gehm is definitely a great book.
if you want to take it further, read some stuff on mathematics of gambling, spread betting strategies, horseracing betting systems, etc.
they all share the same virus: how do you maximize your returns, if you have a given edge?
different answers, different dreams
  • #19
  • Last Post: Mar 17, 2013 10:03pm Mar 17, 2013 10:03pm
some books you may want to consider as well:

Edward Thorp, Mathematics of Gambling
Edward Thorp & Sheen Kassouf, Beat the Market
Edward Thorp, Elementary Probability
William Poundstone, Fortune's Formula. The Untold Story of the Scientific Betting System that Beat the Casinos and Wall Street (i didn't like it, but nice, if you don't know much about Thorp and Kelly Criterion)
Ricky Taylor, Profitable Betting Systems for Horseracing
Richard Epstein, Theory of Gambling and Statistical Logic
Nauzer Balsara, Money Management Strategies for Futures Traders
Michael Harris, Profitability and Systematic Trading. A Quantitative Approach to Profitability, Risk and Money Management
Gary Ford, Systems Trading for Spread Betting
Daviid Stendhal, Money Management Strategies for Serious Traders
Daryl Guppy, Better Trading. Money and Risk Management

For beginners, Van Tharpe is reasonable. You can also take a look at Allan Hull, Trade My Way...
Avoid Bennett McDowell, A Traders Money Management System (this book is useless and a marketing scam)

Don't get sick of Vince. If you're getting frustrated with Optimal Fs, why don't you make it better?

good luck
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