Practical Application Through Different Markets Proper money management is based on one thing only, account performance, otherwise known as the equity curve of the account. It doesn’t matter where the money came from or how. Leveraged accounts are ...

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Chapter 4 - Practical Facts Practical facts are my favorite kind of facts! image Just the facts, ma’am. Where to Begin Applying MM Many traders think they should apply MM after they’ve perfected their system. This is a costly mistake. MM will not ...

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Painfully accurate, my friend. This is why I came to the conclusion that I'm unsuited to trading manually, and yet as we've learned from our labours, it's nearly as difficult to create an EA that has the discretionary judgement of a human being. I ...

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Chapter 3 - Types of MM Martingale MM “The martingale category simply states that as the value of an account is decreasing, the size of following trades increase. The basic characteristic of the martingale is that as the account suffers losses, the ...

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I got up to $125 and then got clobbered - hard. This was a result of (at least) 3 amateur mistakes. image 1. I was doing just fine trading forex majors, but for some reason decided I knew something about the direction of the Dow Jones. They saw me ...

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Negative Vs. Positive Expectations A positive expectation (edge) is needed for proper MM image The coin flip example would be: image This equation is only useful in theoretical situations where the future win ratio is known. In trading you can ...

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No one wants to guess or even Google the answer, well, no matter, friends, I will tell you. The results are as follows: A. After 100 flips, @10% $100 turned into $4,700. B. After 100 flips, @25% $100 turned into $36,100. C. After 100 flips, @40% ...

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Chapter 2 - Why (Proper) MM? Most traders put more energy into entries than MM but MM is the key to trading success Jones tells the obligatory ‘folly of youth’ trading story Age 21: he buys a trading system for $100 Against all odds he doubles his ...

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What MM is and is not Larry Williams says in ‘Definitive Guide to Trading Futures' (vol.2) that MM is the most important chapter in the book MM is not about stop placement MM is about how much of your next trade is put at risk MM has 2 categories ...

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Chapter 1 - Why? What? Where? When? Who? How? Money management is misunderstood. It’s not boring like accounting. It’s ‘truly exciting’. No other knowledge can ‘ignite’ an account faster than MM A common dream is to get $1M in trading profits in a ...

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The Trading Game - Playing By the Numbers to Make Millions by Ryan Jones I selected this book because it was frequently referenced by other traders when they talked about money management. It seems like this is THE book to read if you want to know ...

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I think it's just under heavy load. The 'new Google' although I wonder if they can keep it up.

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3 Day rule After an Intel or Microsoft has had a large 3 day move you don’t want to get in on the mature trend. “The first day the smart people are moving, the second day the semismart people are moving, and by the third day, the dunces have finally ...

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Chart gaps If they aren’t filled in 2-3 days it’s a strong signal to take a position in the trend direction. 3 types of gaps Breakaway gap - coming off a base - very bullish Continuation gap - happens after a move has already been made Exhaustion ...

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Program Trading Marty calls it ‘Nintendo Vegas’ because it produces 15-20% of daily trading volume on the NYSE. After the 1987 crash it didn’t take long for greed to cause the players to come back to ‘the casino’. Money and power always prevail on ...

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Market Analysis “I record the pulse reading on the exact half hour by drawing a box around the indicators. Then I overlay a red or green arrow between each boxed set to reflect whether the New York Composite was up or down from the previous half ...

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Chapter 18 - The Pit Bull Guide to Successful Trading This big chapter is almost a book by itself. I've split it up into multiple sections/posts. Trading style: Marty is a scalper, if you hadn’t already guessed. Strengths: dedication to hard work, ...

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Chapter 17 Schwartz tells the story of how he winds down the partnership. He wants to focus on his health and have a less stressful life. At the start of the chapter he wants to grow his fund bigger than a rival, “Porky”, but by the end, he realizes ...

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Chapter 16 This chapter is a detailed description of a trading day as Schwartz fights to keep his fund alive. He compares himself to a soldier in the marines and uses military symbolism to describe how he outlays strategy and tactics with military ...

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It is a cunning liar and every 'fact' that you get from it needs to be double-checked. It can sound very reasonable and be completely wrong.

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