Contents
Foreword vii
Preface ix
Acknowledgments xi
Diclaimer xiii
INTRODUCTION This is My Money Management System 1
PART ONE Psychology of Risk Control 7
CHAPTER 1 It Just Ain’t Sexy! 9
CHAPTER 2 Confidence in Your Plan 15
CHAPTER 3 Yin and Yang 23
CHAPTER 4 Risk Psychology and The Trader’s Mindset 31
PART TWO Stop-Loss Exits 37
CHAPTER 5 Not Every Trade Will be a Winner 39
CHAPTER 6 Entry Rules and Your Trading System 45
CHAPTER 7 Stop-Loss Exit Rules 55
CHAPTER 8 Scaling Out and Scaling In 65
PART THREE Trade Size Does Matter 73
CHAPTER 9 Using Risk-of-Ruin Tables and the Optimal
f Formula 75
CHAPTER 10 Using the Two Percent Risk Formula and
Proper Trade Size Formula 83
PART FOUR Record Keeping and Profit/Loss Analysis 89
CHAPTER 11 Tracking Profit and Loss Results and
More Formulas for Success 91
CHAPTER 12 Using Trade Posting Cards and Ledgers 99
PART FIVE Design Your Own Plan 131
CHAPTER 13 Know Thyself—Your Risk Profile and
Discipline Profile 133
CHAPTER 14 Risk Management Rules to Choose From 139
Epilogue 149
APPENDIX A Getting Started with Your Trade Size
Calculator Software 151
APPENDIX B The Trader’s Assistant Record Keeping
System 153
APPENDIX C The Art of Paper Trading 167
APPENDIX D Resources 173
Glossary 179
About the Author 203
Index 205