Wednesday, February 17, 2010
Money Management
I've taken a few big losses over the past few days in Gold and x/JPY. Investing too much in certain trades and being far too overconfident in my analysis, has taken away much of my profit from earlier this year. Always make sure you have enough money in your account to cover your trades and don't be greedy/emotional and overextend yourself. I'm going to read up on money management over the coming days, it is definitely my biggest weakness. If anyone has any good money management ideas or knows any good books to read on the topic please let me know. I truly hope that you are all far more disciplined than myself..
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Please try Inside the investor's brain by Petersen - its more how greed (and other feelings as loss aversion) works inside your brain
ReplyDeleteand I recommend The Daily Trading Coach by Brett Steenbarger - more about psychology and how to avoid past mistakes, there is also chapter about money management
best
greg
Thanks for that Greg, I'll check them both out.
ReplyDeleteHi mate,
ReplyDeleteBeen there done that :) I guess everyone of us should have been through this stage and learned lessons.
I now follow 1% MM strategy and that has worked very well for me ever since I've been following it.
Problem is that when we see a good move we want to make the most out of it and we think that this is the best chance we have. As long as we keep reminding ourselves that there is always a next trade.
Asher