Most of you will agree with while stating that there is no alternate to books. It does not matter how much video tutorial we see , how many lectures we attend the significance of manuals and books will always be rated highly.In this blog I will briefly give an insight to a highly rated scholar Dave Landry for his series on Money Management which is Dave Landry the layman’s guide to trading stocks hardcover .
As per author “money management is the process of analyzing trades for risk and potential profits, determining how much risk, if any, is acceptable and managing a trade position (if taken) to control risk and maximize profitability”
As we know that Dave Landry himself is considered as one of the successful Forex trader. In the series he explains how he carry out the routine and develop method to manage the time and the money to its utmost perfection. The author says that many traders pay lip service to money management while spending the bulk of their time and energy trying to find the perfect (read: imaginary) trading system or entry method. But traders ignore money management at their own peril.
A brief summary of the series/manual or the layman’s guide to trading stocks
can be broken in to parts which are briefly summarized as
a. In the first part an effort has been made to analyze why money management is important.
b. In the second part general guidelines are highlighted which should help to shield capital and guarantee returns as a trader
c. In Parts 3 and 4 professional traders routines and views on the trade are compiled.