A trader\'s money management system

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c12 JWBK182-McDowell April 25, 2008 16:15 Printer: Yet to come

100 A TRADER’S MONEY MANAGEMENT SYSTEM

WHAT IS INCLUDED IN THE TRADER’S

ASSISTANT RECORD KEEPING SYSTEM

The Trader’s Assistantis a system that will help you track your trades

from a macro level to a micro level. What this means is that you will be

able to take a look at your performance from the macro level on the annual

trade ledger all the way down to the micro level on each individual trade-

posting card.

Here are the nine different forms that are included inThe Trader’s

Assistantsystem you will find in Appendix B:

1.Daily worksheet

2.Daily trade ledger

3.Weekly trade ledger

4.Monthly trade ledger

5.Annual trade ledger

6.Stock trade posting card

7.Option trade posting card

8.Future trade posting card

9.Trading Scorecard

By completing these forms daily, weekly, monthly, and annually, you

will be capturing the data you need from both a profit/loss standpoint and

also from a trading psychology standpoint. This unique personal data, over

time, holds the key to improving your performance.

TRACKING YOUR PSYCHOLOGY

Not only will you be tracking the numbers with the tools we will give you,

but also you will be tracking your psychology. Seeing how your thoughts

and feelings impact the outcome of each transaction is valuable in giving

you a window into your own psyche.

With this said, remember toalwayswrite down your emotional rea-

sons for taking a trade, in addition to the fundamental and technical rea-

sons. You must note these down as they happen, since, in hindsight, you

will never get an accurate reading on what you really were thinking or feel-

ing at the time.