DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Robert O who wrote (507)	6/11/1999 7:43:00 PM
From: -	Read Replies (2) of 18137

<little by little till you're in the red> RO, at the recommendation of John Summa ("The Option Nerd", www.optonsnerd.com) who knows a lot about this topic, I just picked up Larry William's new book "Long terms secrets to short-term trading", it has an excellent section on money-management. He goes through the math, and his long struggles with the issue. The really super, top traders have all struggled with this one long and hard. I touched on it in one of my lengthier "trading issue" posts on this thread - I think it was the one on "The Dark Side" of trading. The important thing is to realize that the position size vs. account size ratio is not something you want to just deal with intuitively. Many traders (even the best ones) are much closer to the "blow up threshold" than they think... Larry's book does a good job of explaining why, and how to avoid getting caught by the statistics. -Steve

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