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See Schwager's "The New Market Wizards" chapter on "Gil Blake: The Master
of Consistency" for a story about a guy who set out to show that something
like a monkey would work, but then became a fund timer.
Steven Buss
Walnut Creek, CA
sbuss@xxxxxxxxxxx
-----Original Message-----
From: Leo Karl <leokarl@xxxxxxxxxxx>
To: bdoeden@xxxxxxxxxxxx <bdoeden@xxxxxxxxxxxx>
Cc: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Sunday, November 02, 1997 3:57 AM
Subject: Money Management
>Robert Doeden wrote:
>>
>.....Snip, snip.....
>>
>> When I first started I tried using stops to control my risk. Didn't make
>> any money. I decided that that wasn't the way to make money so I stopped
>> using stops. I then started making money in commodities.
>
>.....Snip, snip.....
>
>> 10. By using good money management I reduce my risk.
>>
>> Someone else wrote an excellent post on money management recently. Money
>> management is the key to market success.
>>
>> Bob Doeden
>> ===========================================================
>>
>
>Bob,
>
>Intuitively, I agree that good money management is essential to
>successful trading. Having said that, I have to admit that I don't have
>a clear sense of what money management really is. You express yourself
>well, and I was hoping that you could explain just what "money
>management" means to YOU.
>
>For example, there are those who consider stops an essential part of
>money management, yet it appears that you no longer use them.
>
>I would also be interested in your thoughts on my personal theory
>(unproven) that one could pick stocks by having a monkey with dirty feet
>walk across the Wall Street Journal. Then buy on the right paw, sell on
>the left, those issues selected by the monkey's footprints. (Stay with
>me for a moment longer, I'm serious about this!) Then, with correct
>money management, one could, over time, do about as well as he could
>with more conventional methods of TA or fundamental selection.
>
>In other word, I'm proposing the notion that purely random selection of
>stocks/commodities, with rigorous money management, will beat the
>greatest stock picker who manages poorly, every time. I hope I'm wrong
>in this view because if I'm right, then TA may be hardly more than a
>fascinating exercise in random selection.
>
>What do you think Bob, should I get a monkey or the latest version of
>Advanced Get?
>
>Leo
>
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