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I was totally underwhelmed by this book. Chuck LeBeau, a trading system
designer for whom I have a great deal of respect, was so glowing in his
praise for it that I went out and bought a copy. But the brutal truth is
that what does most losing traders in is *not* bad money management or
lack of a winning attitude but the fact that their trading methodology,
assuming of course that they have one, does not have a positive
expectation after transaction costs.
I recommend in place of Tharp's book Richard Epstein's "The Theory of
Gambling and Statistical Logic." The hardbound edition is out of print,
but Amazon has the paperback edition for a very reasonable price. See
http://www.teleport.com/~znmeb/biblio.htm#[Epstein77]
There is no getting around the fact that money management is a very
mathematical and statistical subject, and Tharp does a dis-service when
he attempts to make it appear easier than it really is. Incidentally,
Tharp sells some kind of software called "Athena" for an outrageous
price. I don't know anything about it other than that it is much more
than I'd be willing to spend, given the fact that I'm perfectly capable
of writing my own software to do the job. Eventually it will be
available for a thorough public testing and review. Maybe it's good,
maybe it sucks -- there's no way to tell without such a review.
--
M. Edward Borasky znmeb@xxxxxxxxxxxx http://www.teleport.com/~znmeb
If God had meant carrots to be eaten cooked, He would have given rabbits
fire.
----- Original Message -----
From: Linda Swope <lswope@xxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Sent: Thursday, March 25, 1999 09:55
Subject: Re: MM & Psychology
> Kevin,
>
> I'm just starting Van Tharp's Trade Your Way to Financial Freedom.
The
> April issue of TASC has a good interview with him. He calls money
> management "position sizing". You can have 80% winners and only 20%
losers,
> but if those losers run, that 20% can wipe out the 80% and more.
That's
> what happened to me, so I'm eagerly jumping into the book. He also
has a
> website: www.iitm.com.
>
> Good luck and please share any new found wisdom!
> Linda
>
> Swope's Mountain Photography
> http://www.swopephoto.com
> linda@xxxxxxxxxxxxxx
> Climb the mountains & get their glad tidings: Peace will flow into you
as
> sunshine into flower; the winds will blow their freshness into you &
storms
> their energy, & cares will drop off you like autumn leaves. John Muir
1838 -
> 1914
>
>
> -----Original Message-----
> From: Kevin Shin <kalalex@xxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Wednesday, March 24, 1999 10:22 PM
> Subject: GEN: MM & Psychology
>
>
> >
> >Today,,,I found myself hesistate to get out of market with a good
> >profit,,,,instead waited for bigger profit,,,then gave back most of
it.
> >I heard about this story many times,,,,and experienced it myself many
times
> >too.
> >I was re-reading StreetSmarts again today afternoon,,,and hit this
phrase
> "3
> >most important ingredients for successful trading are entry method,
> >understanding psychology and money management".
> >Most of us start to find perfect entry method,,,,instead of training
and
> >educating ourselves about psychology and MM.
> >I'd like to start all over again from more important
things,,,psychology &
> >MM (in my opinion).
> >I have Douglas' Disciplined Trader to educate myself about the
> psychology,,,
> >but never paid attention to MM.
> >I wonder if there's anyone out there who read good books on MM, come
> forward
> >and recommend.
> >Thanks,,,
> >
>
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