There seems to be a lot of controversial over the concept of R-Multiples. I’ve been seeing people complain about them for months now and I’ve been meaning to write a post about “R”. I really wanted to do it last week but I’m glad I didn’t get to it because this week a [...]

What a coincidence (do coincidences actually exist???) that just as I’ve been thinking more about money management Worden has had a run of users writing in about money management. Here are some of those letters which were published in the Worden Report (emphasis & links added by yours truly):

Tags: 80/20_Rule, Exits, Expectancy, Kelly-Criterion, Money Management, [...]

I’ve been doing a lot of thinking about money management and compounding of late. The other day I realized that I’d accumulated over 100 R of profits since I began day trading. (1 R = my initial dollar risk on any given trade.) More specifically it’s 100 R from when I started [...]

Here are some of the more interesting trades I took this week. It was one of my better weeks as far as winning percentage (67% — 8 winners out of 12 trades) and expectancy (0.88). Maybe I should only trade 3 days per week every week. Hmm…
I went long in WITS on [...]

(Edit: You may also be interested in my article detailing how I trade as well as my hardware and software setup.)
I’ve been exclusively day trading for almost three months now. The switch from swing trading has been quite an experience and I’ve had a few ‘light bulb’ moments along the way as you’ll [...]

Here’s an article by Adam Hamilton about how to speculate successfully. It covers what should be familiar topics — money management, position sizing, trailing stops and expecting the unexpected. Here’s a snippet:
This week I would like to discuss tactics that speculators can use to survive and thrive in a limitless environment. The markets [...]

The other day I noticed the TheStreet.com has published some of Gary B. Smith’s articles on the free section of their site. I may have to start visiting the site again on a regular basis. Here are several of the articles that I found interesting.

Getting From There to Here, Reprise - Gary talks [...]

MrSwing.com is doing a series of articles on money management, expectancy, trading as a business, etc. Here are the first installments:
So You Want To Be A Millionaire? – Money Management Makes Trading a Business and Not a Boondoggle - (Part 1)
So You Want To Be A Millionaire? – Money Management Makes Trading a Business [...]

Expectancy along with position sizing are probably the two most important factors in trading/investing success. Sadly most people have never even heard of the concept. Out of the 30 or so trading books I’ve read only a few even touch on any aspect of money management. Only one of those handful of [...]

For a while now I’ve been meaning to explain who I am and how I trade. After reading Dr. Steenbarger’s blog today, I’ve been inspired to do it, so here goes. It appears that my trading philosophy is very similar to that of Dr. Steenbarger. I’ll attempt to use similar headings [...]