Successful Trader''s Guide to Money Management - Proven Strategies, Applications, and Management Techniques

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.

List of contents

Foreword
 
Preface
 
Acknowledgements
 
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
 
APPENDIX I
 
I.1 The Impact of a Trading System on Planning
 
I.2 The Trading System
 
APPENDIX II
 
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?

About the author

ANDREA UNGER is a full-time trader, educator, author and Founder and CEO of Unger Academy^®. He is a highly sought-after speaker at conferences in Europe, the US, and APAC; a member of Mensa International; and an honorary member of the Italian Society of Technical Analysis.

Summary

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.

Product details

• Authors: A Unger, Andrea Unger
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 30.04.2021
• EAN: 9781119798804
• ISBN: 978-1-119-79880-4
• No. of pages: 320
• Series: Wiley Trading; Wiley Trading Series
• Subjects: Social sciences, law, business > Business > Business administration; Finanzwesen, trading, Börsenhandel, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen