iCharts Discussions

[suppressemotion]

mates
anyone can tell me best book for money management and position sizing. n from where i can buy it or dwnload it if its free on net. as nw i m going to start swing trading as well. earlier ws doing just intra. in intra simple money management works. but for position trading wanna have more knowledge about money management stuff n position sizing.


thax
regards
suppress

[casper]

hi brother

can i advice u some?

why going for book? position sizing is so simple thing

suppose u can afford to risk 500 per day and u got a trade where if ur sl is hit u will lose 2rs a share, assuming u will take only one trade per day, u should not buy more than 250shares for that trade

for stop loss management, simplest rule is "ur reason for trade is ur stop loss" suppose u r buying a share as it has broken through a particular resistance level, say monthly pivot

so during trading, until it goes below the monthly pivot again, it will take support at the monthly pivot and will try to fly

so here, a close below monthly pivot can serve as ur sl

i hv not read so many books..... day to day experience in the market taught me what ever lil bit i know

so shared my personal opinion here

happy trading brother

[Transcap69]

Suppressemotion,
Money management rules are same for day and position trading. Added risk is overnight news which results in gaps for swing trading ,in case the instruments gaps in the reverse direction of placed trade you have to take that loss.Simply use swing pivots for position sizing.Rest all is same as day trading. (PS: most traders migrate from swing trading to day trading)

Books:
The mathematics of money management: risk analysis techniques for traders By Ralph Vince

Portfolio Management Formulas Ralph Vince
(*Needs a mathematical background reader)

[suppressemotion]

thax for your response boys ...i appreciate it

[HEMANT358]

wow

[vinay28]

If you start with 10K and loose, say, 2k then next time you put it only 80% of money left i.e. 6.4k. Same applies if you make profit too, once total amount exceeds 12.5K.