"Money Management" Posts
Is Day Trading For You
Many people find day trading very attractive as a career but never really spend the time to think it over before committing themselves to a surprise journey in hell. It is not what most people think and it is not suitable for most people. Following series of articles is a serious discussion on the subject […]
Defensive Money Management Explained: Second Component Of Averaging Down
By Lawrence
Average down on losers madly is one thing. Controlled average down is something else totally. In this article I am going to discuss the second component of strategic average down. Before we start it is important that you do not skip the basic concepts of money management and just read this part in the series […]
Van Tharp: Money Management with R Multiples
By Lawrence
If you have not read Van Tharp’s book Trade Your Way To Financial Freedom (review here), this video is pretty much the heart of his book and the main theme of his teachings.
Time To Slack Off 2013 Edition
By Lawrence
As of this Thanksgiving, my trading year is done. It is an unusual year for me in many ways while it stays the same in others. I will still trade a bit here and there but nothing more than that until end of this year. Over the coming month, it will be a good time […]
Defensive Money Management Explained: First Component Of Averaging Down
By Lawrence
Unplanned average down is one of the biggest enemies for traders with limited capital. Planned average down, however, can work and it is much more complex than most people can imagine. Although I do not recommend traders to employ the strategy in their own trading in general, an understand of the concept is useful though […]
Julia Galef: The Sunk Costs Fallacy
By Lawrence
Defensive Money Management Explained (Part 9) – The Money Management Edge Part 2
By Lawrence
Index Page Continue from Part 1 Money Management Edge Is A Function Of Leverage In laymen’s term, money management edge is simply how much money you can afford to sink into a hole and how much time you can afford to wait for a position to turn profitable. It may sound stupid to some but […]
Defensive Money Management Explained (Part 8): An Example Of Money Management Edge
By Lawrence
After talking about how important and powerful money management edge is, many traders would wonder how that actually works in real life. Here is an example trading model illustrating the concept. Index Page (member-only content below)
Defensive Money Management Explained (Part 7) – The Money Management Edge Part 1
By Lawrence
Index Page Most of the time traders looking for profitable trading setups do not think about the maximum risk first. Jargons like high probability setups and low risk entries often dominate the reading materials a trader can find. Those are entry methods with possibly an edge or a bias that the trader can lean on. […]
